Hyperliquid Wallets Sell $2.2 Million in HYPE Before 10 Million Unlocks

Hyperliquid Wallets Sell $2.2 Million in HYPE Before 10 Million Unlocks – An Overview

The Hyperliquid team has recently made significant moves in the HYPE market, selling $2.2 million worth of tokens and initiating the first of several monthly unlocks. As the project prepares to release 10 million HYPE until October 2027, analysts are closely monitoring how these unlocks will affect the token's price and market dynamics.

Key Takeaways

The Hyperliquid team sold approximately $2.2 million worth of HYPE tokens after an initial unlock.
Monthly unlocks will continue until October 2027, releasing around 10 million HYPE tokens.
Analysts are observing potential selling pressure from these unlocks, particularly from the project team.
Sentiment is currently bearish with declining funding rates.
Market demand could be impacted by new treasury strategies and buyback initiatives.

Hyperliquid HYPE

HYPE Price Movements and Team Actions

The Hyperliquid team’s future token sales are creating a cloud of uncertainty over HYPE's price performance. Following the first unlock on November 29th, the team acquired 1.745 million HYPE tokens, with anticipation that these tokens could soon enter the market.

From this total, about 235K HYPE was staked while 609K HYPE was sold through over-the-counter (OTC) transactions via Flowdesk. Over 900K HYPE remained available on the Spot market. Not long after, on-chain data indicated that two team members sold an additional 75K HYPE, valued at over $2.2 million. Another team member has staked an extra 75K HYPE.

Hyperliquid HYPE

Source: Tokenomist

Impact of Future Monthly Unlocks on HYPE Price

This recent move marks the beginning of a series of unlocks that will continue until October 2027, releasing about 10 million HYPE monthly. Analysts are particularly focused on the team's allocations since they may sell their tokens, leading to potential downward pressure on the price as they aim to fund their development of a leading perpetual decentralized exchange (DEX) platform.

Interestingly, different team members may pursue varied strategies with their unlocked HYPE, although it is anticipated that many of these tokens will be sold. Delphi Digital analyst Jason has noted that it will take several months of observing these unlocks to accurately predict the selling pressure on HYPE. “I’m going to wait and see how the market digests this unlock and the next ones,” he stated, emphasizing the need to see how much selling pressure may be mitigated by protocol revenue.

In the wake of the latest team sell-off, HYPE experienced a brief decline below $30, dropping about 17% from this week's peak of $36.

HYPE Hyperliquid

Source: HYPE/USDT, TradingView

Market Sentiment and Dynamics

Currently, the funding rates have decreased since mid-week, reflecting a shift towards bearish sentiment.

HYPE Hyperliquid

Source: CoinGlass

Despite this bearish sentiment, demand for HYPE may improve following the recent merger between Hyperliquid Strategies and Sonnet, which could introduce new treasury support for HYPE. However, the existing constrained market conditions could also challenge HYPE's traction along with its buyback initiatives. In the last 24 hours, the project bought back 21,700 HYPE tokens, but ongoing emissions from stakers (26.7K HYPE) have resulted in an excess of 5K HYPE in inflationary tokens entering the market.

Hyperliquid HYPE

Source: X

In light of these developments, unless treasury interest increases or market sentiment strengthens, HYPE may experience continued pressure ahead of more scheduled monthly unlocks.

Final Thoughts

As the Hyperliquid project navigates this critical period, stakeholders will be keenly watching how these monthly unlocks impact HYPE's value and overall market dynamics.