HYPE Faces 45% Supply Cut Proposal as Rival ASTER Steals Market Spotlight

Key Notes

• DBA proposed cutting HYPE supply by 45% to address market undervaluation.
• Rival DEX Aster saw massive adoption, surpassing HYPE in DEX volume.
• HYPE price faces resistance at $52.38, with key support at $44.30.

DBA Asset Management, a prominent holder of Hyperliquid’s native token HYPE HYPE $48.30 24h volatility: 2.5% Market cap: $13.10 B Vol. 24h: $716.99 M , has introduced a bold proposal to slash the token’s supply by 45%.

The plan, co-authored with crypto researcher Hasu, would revoke unissued tokens allocated for future emissions and community rewards, burn the assets in Hyperliquid’s Assistance Fund, and eliminate the existing 1 billion supply cap.

— Jon Charbonneau 🇺🇸 (@jon_charb) September 22, 2025

421M HYPE Face Wipe-Out

If approved by Hyperliquid’s governance, the move would reduce supply by 421 million HYPE from community rewards and 21 million from the assistance fund.

DBA argues that the market is undervaluing HYPE due to the fully diluted valuation metric, which factors in unissued tokens.

By cutting these allocations, DBA believes the token will become more attractive to investors and stakers, while still leaving room for future issuances to fund initiatives.

Mixed Reaction from Community

Supporters like Dragonfly’s Haseeb Qureshi called the nearly 50% community allocation an undefined slush fund, while critics argue emissions remain one of the strongest growth tools and should not be scrapped.

Absolutely foolish and a disaster.

Using future emissions is the most powerful growth and competitive tool @HyperliquidX has at hand.

This would freeze in those of us with large $HYPE stacks and crush growth.

Your post is one dimensional with no evidence.

— Mister Todd (@pondermint) September 22, 2025

HYPE recently touched a new all-time high at $59.30 before falling back to $46.08 as selling pressure mounted.

ASTER’s Dominance

Aster’s growth is fueled by one of the largest DeFi airdrops to date, allocating 53.5% of its supply to the community. Nearly 330,000 wallets joined the network within a day, helping total value locked climb past $1 billion.

Interestingly, the rival DEX has surpassed Hyperliquid 24 hour DEX volume for 3 days in a row. The data from DefiLlama shows that Aster’s TVL stands at a massive $1.39 billion, just weeks into its launch, potentially placing ASTER as the next crypto to explode .

JUST IN: $ASTER surpasses Hyperliquid $HYPE in 24 hour dex volume for 3 days in a row pic.twitter.com/pQ325l2rmo

— BlockNews (@blocknewsdotcom) September 22, 2025

HYPE Price Analysis: Looking Ahead

At $48.78, HYPE is consolidating after its sharp pullback from highs near $60. The token is testing resistance at its 20-day moving average of $52.38, with support at $44.30.

The MACD shows early bearish divergence, and the Balance of Power suggests reduced bullish strength. If HYPE reclaims $52.38, a move back above $60 could follow, but sustained trading below $44 risks a deeper correction toward $40.