The team behind the Hyperliquid decentralized exchange (DEX) recently disclosed the unlocking of 1.75 million HYPE tokens for their developers and core contributors, amounting to over $60.4 million at the time of publication.
This token unlock, confirmed by iliensinc, a pseudonymous Hyperliquid developer, was previously announced as part of HYPE’s vesting schedule. Celebrating the first anniversary of Hyperliquid’s significant airdrop and token generation event, he mentioned:
“For perspective, about 270 million tokens were fully unlocked on Nov 29, 2024, in the largest airdrop in history, measured in today’s market value at about $9.5 billion. There are no investor unlocks, as Hyperliquid never raised any external capital.”
Token Unlock
Source: iliensinc
The announcement led to concerns about potential selling pressure that might affect HYPE’s market pricing, which saw a decline of about 4.6% at that time.
Hyperliquid’s airdrop, which was acknowledged as a revolutionary moment within the cryptocurrency industry, focused on rewarding early adopters rather than venture capitalists. It has since been viewed as a model for community-engaged project launches.
Are Hyperliquid’s Token Unlocks Priced In?
Arthur Hayes, founder of BitMEX, remarked:
“Even if the team pinky swears to not sell, there is nothing holding them to that.”
According to Hayes, HYPE token holders should be prepared for inevitable daily selling pressure, a concern already factored into market prices.
Following a high of around $59.40 in September, HYPE has experienced a drop of approximately 42%, trading predominantly below its 200-day moving average—a critical support level.
Price Action
HYPE’s price shifts illustrate a steady rise culminating in a peak in September followed by a decline. Source: TradingView
After starting its descent on September 19, this downward trend was exacerbated by a historical market crash in October that saw various altcoins lose up to 95% of their value.
During the October 10 crash, the token lost about 54% in a single day but quickly rebounded back to the $40 mark within 48 hours.
Analysts have commended Hyperliquid for effectively generating revenue and achieving a remarkable $330 billion in monthly trading volume with a lean development team.
