Hyperliquid unlocks 1.75M HYPE; market impact limited so far
Hyperliquid said it unlocked 1.75 million HYPE tokens for developers and core contributors on Saturday, an amount valued at over $60.4 million at the time of writing.
The release was previously scheduled under the project’s vesting plan and coincides with the first anniversary of Hyperliquid’s airdrop and token generation event, according to pseudonymous Hyperliquid developer iliensinc. They noted that about 270 million tokens were fully unlocked on Nov 29, 2024, which at today’s market value equates to roughly $9.5 billion, and reiterated that there are no investor unlocks because Hyperliquid did not raise external capital.
The unlock prompted concerns about potential selling pressure. HYPE declined by about 4.6% at the time of writing.
Hyperliquid’s airdrop and token launch were widely viewed as a notable rollout in the sector, emphasizing community distribution to early users and builders rather than venture capital allocations.
Market signals suggest unlocks may be reflected in price
Arthur Hayes, founder of the BitMEX exchange, said that even if a team promises not to sell, there is no binding constraint, adding that HYPE holders should anticipate a non-zero probability of ongoing sell pressure. He argued the market has largely accounted for this, citing the token’s slide since September.
HYPE is down about 42% from its all-time high of about $59.40 set in September and is trading well below its 200-day moving average. The token began declining on September 19, ahead of the October 10 market sell-off that erased up to 95% of value from certain altcoins. HYPE dropped about 54% in a single day during that session but rebounded to the $40 level within two days.
Industry participants have also highlighted Hyperliquid’s revenue profile and its capacity to support approximately $330 billion in monthly trading volume with a relatively small development team.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
