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The Hyperliquid ecosystem recently faced a groundbreaking proposal aimed at permanently reducing over 45% of the altcoin ‘HYPE’ supply. Suggested by DBA Asset Management, this proposal involves burning unused coins and those in the support fund. While sparking varied reactions within the community, analysts project that the altcoin price could reach $100 by the end of the year.
Proposal for HYPE Coin Supply Reduction
Jon Charbonneau, an investment manager at DBA Asset Management, shared the extensive supply reduction proposal via his social media account. The proposal seeks to burn all coins reserved for future distributions and community rewards that haven’t yet circulated. Furthermore, it recommends burning assets from Hyperliquid’s support fund. If this proposal is accepted, it could permanently remove hundreds of millions of coins from the market.
The supporters assert that this supply cut will render Hyperliquid’s ecosystem more transparent in terms of valuation. They argue that the existence of unused coins undermines the project’s credibility and causes pricing errors. The proposal’s approval is anticipated to align the altcoin’s market value more accurately with its actual use.
However, there are some objections within the community. A member named Tobias Reisner stated that the platform already has usage-based coin burning mechanisms, indicating no additional burning is necessary. He believes that burnings from transaction fees adequately protect the altcoin’s economy.
Analysts’ Predictions for HYPE Coin Value
HYPE coin has experienced a remarkable increase of 1,200% since the beginning of the year, reaching a new peak above $58. Recently, though, it has been consolidating around the $48 mark. This pullback saw additional pressure from the sale of approximately $5.1 million worth of HYPE by BitMEX founder Arthur Hayes.
Analyst CryptoFrog notes that HYPE maintains its trend lines and investors remain strongly committed to the altcoin. According to him, if the current momentum continues, HYPE could reach $100 in the fourth quarter. One development fueling this expectation is the integration with MetaMask, which allows users to deposit USDC and engage in perpetual contracts directly through the wallet.
Despite rising competition from platforms like Aster, Hyperliquid continues to hold its leadership in open positions. This indicates continued ecosystem growth. Should the supply reduction proposal be accepted, it could further bolster price expectations for HYPE coin.
