Will HYPE Token’s Massive Unlocking Cause a Price Plunge?
With a 24-month unlocking schedule amounting to $11.9 billion, Hyperliquid's HYPE token faces a critical situation. How significant is this threat, and how should investors prepare for it?
With a 24-month unlocking schedule amounting to $11.9 billion, Hyperliquid's HYPE token faces a critical situation. How significant is this threat, and how should investors prepare for it?
The native token of the Hyperliquid platform, HYPE, faces a crucial moment with the opening of a 24-month unlock schedule representing $11.9 billion. According to analysis from Arthur Hayes’ Maelstrom fund, this avalanche of tokens could significantly weaken price stability.
Indeed, pressure is also mounting for Hyperliquid with the emergence of new decentralized competitors like Aster, the Binance-linked DEX, which recently surpassed $2 billion in total value locked and $3 billion in volume. Hyperliquid will face a fierce battle to maintain its market share.
Despite these uncertain prospects, Arthur Hayes still envisions a 126x upside potential for the HYPE token by 2028. Known for his ambitious forecasts, the former BitMEX CEO remains confident in Hyperliquid’s future, but investors will need to navigate carefully through this pivotal period.
Nevertheless, the community hasn’t abandoned the most popular DEX of recent months. As Filthy points out, Hyperliquid still generates more than $3 million in daily revenue and over $1 billion annually. As a reminder, 97% of transaction fees are used for buybacks.
However, according to Arthur Hayes, these buybacks won’t cover the overall lack of demand for the token. By his calculations, the buybacks only cover about 17% of the upcoming unlocks of millions of HYPE tokens. This wouldn’t be enough to offer a bright future for the token.
Currently priced at around $49, HYPE still has $100 in its sights for 2025. This would offer a potential return of more than 100%. Here’s how to bet on the continued uptrend of the best DEX and DeFi project of 2025 on Zoomex:
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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