Hyperliquid $314M Unlock Sparks HYPE Sell Pressure
Hyperliquid will unlock 9.92 million HYPE tokens—2.66% of supply—worth roughly $314 million in a single cliff release on Saturday. The token unlock has sparked calls from community members for clearer communication on tokenomics and allocation management. HYPE has fallen 23% in the past month, trading at $31.
BitMEX co-founder Arthur Hayes warns that the unlock will create unavoidable sell pressure. He notes that even assured insider non-sale promises cannot eliminate dilution risk. HYPE’s price-to-fully diluted valuation ratio has already declined since July as traders discount upcoming supply increases.
Meanwhile, perpetual DEX volumes remain robust, with Hyperliquid ranking third at $259 billion in November. The event underscores the need for transparency and raises questions about token unlock strategies for decentralized exchanges.
Bearish
The upcoming $314 million HYPE token unlock will add a significant supply influx to the market, creating immediate sell pressure and driving downward price momentum. Historical cliff unlocks, such as early vesting events in other DeFi projects, have repeatedly led to short-term price declines as large holders realize profits. Traders are already pricing in dilution risks—evidenced by a falling price-to-FDV ratio—suggesting market sentiment is cautious.
In the short term, expect increased volatility and potential price dips as liquidity flows out. In the long term, if Hyperliquid can deliver consistent revenue growth and transparent tokenomics, the negative impact may be mitigated. However, until clear communication and evidence of sustained demand emerge, the token unlock remains a bearish catalyst.