Asset Manager Pushes 45% HYPE Token Supply Cut, Analyst Calls $100 Price Target by Year-End

A crypto asset manager has proposed a 45% supply reduction for Hyperliquid in a bid to boost scarcity. This coincides with a crypto analyst projecting that the HYPE price could hit triple digits before the end of the year.

Hyperliquid Faces Bold Proposal to Cut HYPE Supply

DBA Asset Management has put forward a plan to slash HYPE’s total supply by more than 45%. Jon Charbonneau, an investment manager in the firm, shared the proposal in a well-laid-out post on X.

The suggested measures include burning all unminted tokens allocated to future emissions and community rewards, as well as eliminating holdings from Hyperliquid’s assistance fund. If passed, the move would permanently remove hundreds of millions of tokens from circulation.

Advocates argue that the changes would make Hyperliquid’s valuation more transparent and make it more attractive to investors.  Critics of the current reporting standards claim that authorized but unused tokens reduce the project’s credibility.   When compared to its competitors, this could lead to mispricing.

By cleaning up its balance sheet, the proposal aims to align protocol economics with actual market activity.

The supply proposal arises at a time when HYPE has been among the best-performing tokens of the year. The token set a new all-time high above $58, marking a 1,200% increase from late 2024 levels. Analysts believe the increase comes from more people using the protocol and expectations that measures to limit supply will lead to even higher prices.

Notably, the platform continues to dominate trading activity in decentralized derivatives even as competition intensifies. Rival exchange Aster surged 1,500% recently. The platform attracted nearly $870 million in total value locked and more than $17 billion in monthly perpetuals volume. Despite this, Hyperliquid still leads in open interest and overall trading momentum.

Not everyone agrees with the proposed supply cut. A community member, Tobias Reisner, argued that the platform already has effective burn mechanisms tied to actual usage, such as trading fees.

Analyst Sees Hyperliquid Token Rally Continuing Till Q4

In a recent X post, Crypto analyst CryptoFrog told followers that HYPE’s ability to hold key trendlines in the face of competition shows the conviction of its holders. He predicted the token could easily hit $100 by the end of Q4 if momentum continues.

The token has been consolidating at $48, retracing from recent highs. The downturn can also be attributed to recent selling pressure. For instance,  BitMEX co-founder Arthur Hayes sold off his HYPE bag, totalling around $5.1 million.

However, the altcoin still has major growth potential thanks to the growing adoption of its ecosystem. Just last week, MetaMask announced plans to integrate Hyperliquid perpetuals trading directly into its wallet. This would enable users to deposit USDC and trade within the app.

With its ongoing developments, the platform is experiencing rapid growth in decentralized derivatives. If the 45% supply cut is approved, the token could eventually hit the projected $100 mark by the final quarter of 2025.