The Hyperliquid Foundation is removing $1 billion worth of HYPE tokens from supply due to price decline and competition. The burn reduces available tokens and signals long-term value. Cantor Fitzgerald’s report highlights Hyperliquid’s strong cash flow and suggests the token should be valued like a high-growth fintech company, not just another altcoin.

The burn aims to align public data with Cantor’s financial picture, managing altcoin market sentiment. However, the market remains skeptical, and competition for trader attention is fierce. Cantor projects a potential market cap of $125 billion for Hyperliquid, contingent on expansion into tokenized stocks and real-world assets, despite regulatory challenges.

Hyperliquid’s sophisticated strategy involves burning tokens and focusing on fundamentals to compete for trader attention. The outcome depends on whether traders will reward its approach or continue pursuing incentives elsewhere.

Read more at Yahoo Finance: Hyperliquid Is Burning $1Bn In HYPE Tokens: But Is It Enough?