HYPE Price Target $100 Following Bold Supply Reduction Plan

• DBA Asset Management wants to cut the HYPE token supply by 45%, permanently removing hundreds of millions of tokens. 
• HYPE has gained 1,200% this year and hit an all-time high above $58, but now trades around $48. 
• Crypto analyst CryptoFrog predicts HYPE could reach $100 by Q4 2025 if current momentum continues.
  

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DBA Asset Management has proposed reducing Hyperliquid’s HYPE token supply by 45%. The plan calls for burning about 31 million HYPE held in the Assistance Fund and revoking authorization for roughly 421 million tokens in the Future Emissions & Community Rewards pool. The proposal aims to enhance token scarcity and attract institutional investors.

Investment manager Jon Charbonneau outlined the comprehensive restructuring plan on social media. The proposal would permanently remove hundreds of millions of tokens from circulation. Supporters believe this action would create more transparent valuation metrics for the protocol.

The timing coincides with HYPE’s impressive performance throughout 2024. The token reached an all-time high above $58, representing a 1,200% increase from previous lows. Current trading levels hover around $48 as the market consolidates recent gains.

Supply Reduction Mechanics Target Market Confidence

Together, this would slash the authorized total supply by more than 45%, from 1 billion to about 550 million HYPE. The proposal eliminates uncertainty surrounding future token releases. Proponents argue that unminted allocations create confusion among potential investors.

Critics within the community express different views. Community member Tobias Reisner argues that existing burn mechanisms through trading fees provide sufficient deflationary pressure. The debate highlights varying perspectives on optimal tokenomics structure.

TL;DR: Please burn supply so $HYPE goes up short term.

There is exactly 0 reason in doing that.

Hyperliquid DOES have 3 burn mechanisms that all make sense and are based on actual usage.

Outsiders should either study the token or they are free to trade elsewhere. https://t.co/QnAtFNW8jB

— Tobias Reisner (@reisnertobias) September 22, 2025

Hyperliquid maintains its leadership position in decentralized derivatives trading. The platform processes over $17 billion in monthly perpetuals volume. Total value locked approaches $870 million despite increasing competition from rival platforms.

Recent partnership announcements strengthen the ecosystem’s foundation. MetaMask revealed plans to integrate Hyperliquid perpetuals trading directly into its wallet interface. Users will deposit USDC and execute trades seamlessly within the application.

Analyst Projects Triple-Digit Price Target

Crypto analyst CryptoFrog maintains optimistic projections for HYPE’s price trajectory. The analyst believes the token could reach $100 by the fourth quarter of 2025. Technical analysis suggests strong holder conviction despite recent market volatility.

Source: X

Recent selling pressure included notable transactions from prominent investors. BitMEX co-founder Arthur Hayes liquidated approximately $5.1 million worth of HYPE tokens. Market participants view this as profit-taking rather than fundamental weakness.

The supply reduction proposal faces community governance approval. Implementation would mirror deflationary mechanics seen in other successful protocols. Bitcoin’s halving events provide historical precedent for scarcity-driven value appreciation.

Market dynamics favor assets with predictable supply schedules. Institutional investors increasingly prefer tokens with clear inflationary or deflationary characteristics. The proposal addresses these preferences through permanent supply reduction.

Platform fundamentals support continued growth prospects. Trading volumes demonstrate sustained user engagement across market conditions. Open interest metrics indicate growing institutional participation in Hyperliquid’s derivatives ecosystem.

The proposal represents a strategic shift toward deflationary tokenomics. Success would establish Hyperliquid as a leader in supply management innovation. Community voting will determine whether the ambitious restructuring moves forward.