HYPE Price Target Reaches $50 as Hyperliquid Cuts Team Token Unlocks by 90%

HYPE Price Target Reaches $50 as Hyperliquid Cuts Team Token Unlocks by 90% — Is the Surge Sustainable?

Hyperliquid's HYPE token is gaining momentum again after the team significantly reduced its monthly team token unlocks, prompting speculation over whether it can reach the $50 mark seen during its previous peak. This change is intended to minimize dilution and decrease supply pressure amid intense competition in the perpetual futures market.

Key Takeaways

Hyperliquid has slashed team token unlocks by nearly 90%, reducing the February release to about 140,000 HYPE tokens.
HYPE has seen a price increase of over 55% in one week, with current trading around $33.9.
The token's all-time high remains $59.30, and it currently faces resistance at the $50 level.
Over 61% of HYPE's total supply is still locked, with the circulating supply at approximately 238 million tokens.
Technical analysis suggests that HYPE needs to maintain support at $28-$29 to continue its upward trend.

HYPE Price Target Hits $50 as Hyperliquid Slashes Team Token Unlock by 90% — Is the Rally Sustainable?

HYPE Token Gains Attention as Supply Constraints Implemented

Hyperliquid's HYPE token has returned to the forefront of market discussions after the project sharply reduced its monthly team token unlocks. This strategic move has reignited speculation about whether HYPE might revisit the $50 mark observed during its previous peak.

The Hyperliquid team has introduced this adjusted unlock schedule as a means to lessen dilution and mitigate supply pressure, especially at a time when competition within the perpetual futures market remains high.

Recent updates from Hyperliquid indicate that the February 2026 group has seen token releases cut down to roughly 140,000 HYPE tokens, a remarkable decrease from around 1.2 million tokens issued in January—representing nearly a 90% drop in monthly team releases.

The core contributors to Hyperliquid were allocated approximately 23.8% of HYPE's total maximum supply of 1 billion tokens. These distributions are subject to a one-year cliff and a 24-month vesting period, and they are now set to occur on the 6th of each month.

HYPE Price Surges 55% as Supply Tightens

This decision arrives as Hyperliquid contends with decreased revenue from decentralized exchanges and increased competition among perpetual DEX platforms. By slowing the pace of team unlocks, the project has successfully mitigated near-term selling pressure—an aspect closely monitored by market players since HYPE's launch via a community airdrop in November 2024.

Currently, over 61% of the total supply remains locked, with the circulating supply estimated at roughly 238 million tokens. At the time of writing, HYPE was trading at around $33.9, reflecting a modest daily increase, but boasting a significant weekly gain exceeding 55%.

HYPE Chart

Despite this surge, HYPE is still approximately 43% lower than its all-time high of $59.30 achieved during a previous rally; the market capitalization has now reached just over $8 billion.

In parallel, overall metrics for the protocol's usage have remained relatively stable. This week, the company revealed that the open interest (OI) for HIP-3 hit a record $790 million, fueled by a surge in commodities trading. Notably, HIP-3 OI has been consistently setting new weekly highs, significantly up from $260 million just a month prior.

Additionally, founder Jeff Yan mentioned that liquidity for Bitcoin futures on Hyperliquid has outpaced that of Binance in certain order book analyses. Since its launch, Hyperliquid has recorded over $25 billion in cumulative trading volume, with a substantial portion coming from futures markets established by third-party teams using the HIP-3 framework.

The total value locked in Hyperliquid stands at around $4.6 billion, with annualized protocol revenue estimated at about $714 million. A portion of this revenue is utilized for buybacks and token burns, further circulating HYPE.

HYPE Crosses 50-Day Moving Average After Extended Period Below

From a technical analysis standpoint, experts have pointed out a significant change in HYPE's price structure. After months of trading beneath its 50-day moving average on a three-day timeframe, the token has recently surpassed that threshold. This upward movement has ended a series of lower highs that characterized the downtrend since November.

Market analysts are now monitoring the range around $28-$29, which previously acted as resistance, to see if it can serve as potential support moving forward.

HYPE Price Movement

If this support zone holds during a retest, analysts anticipate possible further progression toward the mid-$30s and low $40s. However, reaching the $50 mark would necessitate an increase of about 80% from the prior support area.

Achieving this rally would depend heavily on sustained trading volume, continuous support from the reclaimed moving average, and favorable overall market conditions. Should HYPE fail to maintain its position above the 50-day average, analysts caution that the recently established bullish setup could dissolve, potentially leading HYPE to drop toward the $20s.