A $314 million token unlock for Hyperliquid is imminent, prompting significant attention on the decentralized exchange’s tokenomics. Community discussions have arisen regarding the management of the core contributor unlock, as clarity is sought on the process.
On Saturday, Hyperliquid will release 9.92 million HYPE tokens, amounting to 2.66% of its total supply, valued at approximately $314 million. This release will occur as a “cliff unlock,” where tokens are distributed all at once.
Public discourse intensified among holders, especially following an open letter from a user named Andy, appealing for proactive communication from the team before unlocking the tokens. At the time of this writing, HYPE is trading at $31, reflecting a 23% decline over the preceding month.
“The team and airdrop recipients finally able to sell is going to ruffle feathers until you address the community head-on,” Andy commented. “The entire market has PTSD from the destruction on charts of VC-backed vapor.”
Hyperliquid’s token unlock
Hyperliquid leads the weekly unlock list with $314 million scheduled for Saturday. Source: Tokenomist
Arthur Hayes Warns of Possible Sell Pressure
Arthur Hayes, co-founder of BitMEX, has raised alarms about the sell pressure anticipated from the upcoming unlock. He contends that assurances from insiders cannot mitigate the prevailing uncertainty regarding potential asset sales.
“Even if the team pinky swears to not sell, there is nothing holding them to that. So you have to assume a >0% amount of daily sell pressure,” Hayes added.
Hayes noted the notable decrease in Hyperliquid’s price-to-fully diluted valuation (FDV) ratio since July as evidence that traders are already factoring in the looming dilution risk, unless revenue growth stays ahead of supply increases.
While some community voices are advocating for enhanced transparency, others argue that the Hyperliquid team is under no obligation to disclose their internal decisions about token management. One user on X remarked that the timing and volume disclosures were adequate, asserting that the team has the autonomy to manage their tokens as they see fit. In contrast, another criticized the open letter as a sign of “desperation” and an expression of “borrowed conviction,” stating that the Hyperliquid member’s contributions have earned them their tokens.
Consistent Trading Volumes for Perpetual DEXs
In spite of a downturn in the broader crypto market, perpetual DEXs have maintained steady daily trading volumes between $28 billion to $60 billion, according to DefiLlama. The top four perpetual DEXs—Lighter, Aster, Hyperliquid, and edgeX—recorded a combined trading volume exceeding $1 trillion in the past month. Lighter led with a $300 billion volume, followed closely by Aster at $289 billion.
Hyperliquid stands at $259 billion, while edgeX achieved a volume of $177 billion during the same period.
Related: Trader torches $3M to punch a $5M hole in Hyperliquid’s vault
