Hyperliquid (HYPE) Price Prediction

Deep Dive

1. Token Supply Reduction (Bullish Impact)

Overview: Hyperliquid validators are voting until December 24, 2025, on excluding 37 million HYPE (12% of supply) held in its protocol fee-funded Assistance Fund from circulating metrics. These tokens are inaccessible without a hard fork, making the vote effectively a supply burn. Approval would lock in deflationary mechanics where 99% of fees perpetually reduce supply. (Cointelegraph)
What this means: If passed, this structurally tightens supply amid existing buy pressure. Historically, similar supply shocks (e.g., Ethereum’s EIP-1559) boosted prices by creating scarcity, especially if demand rebounds from current lows.

2. Ecosystem & Competitive Risks (Bearish Impact)

Overview: Trove—a project that raised $11.5M specifically to build on Hyperliquid—abruptly pivoted to Solana days before its token launch, refunding investors and crashing its token 95%. This highlights builder retention risks and eroded trust in Hyperliquid’s ecosystem stability. (CoinMarketCap)
What this means: Such exits damage Hyperliquid’s developer credibility and could deter new projects, reducing network activity and fee revenue. Near-term price may struggle until clearer signals of ecosystem recovery emerge.

3. Whale Accumulation vs. Selling (Mixed Impact)

Overview: Whales accumulated over $12M in HYPE within two weeks (December 2025), signaling confidence. However, on-chain data also shows spot selling during downtrends, creating volatility. Social sentiment is polarized between accumulation hype and technical warnings. (CoinMarketCap)
What this means: Large buys can cushion downside but risk amplifying liquidations if prices drop further. Price stability requires aligning whale conviction with broader market participation—watch for sustained on-chain inflow trends.

Conclusion

HYPE’s 2026 outlook leans bullish if the supply cut passes, but Trove’s defection and spot market fragility pose near-term headwinds. Monitor validator decisions and on-chain whale flows for directional cues.
Will the token burn vote overcome ecosystem skepticism to reignite demand?