A Legacy of the Massive Airdrop and Why This Unlock Matters

Pseudonymous developer iliensinc explained that the release was intentionally aligned with the first anniversary of Hyperliquid’s token generation event. He reminded the community that roughly 270 million tokens had already been fully unlocked on November 29, 2024. At current pricing, that historical unlock would be valued at around $9.5 billion, still regarded as the largest airdrop in the industry’s history.

One point the Hyperliquid community stresses repeatedly is that the project has never raised external capital. As a result, all unlocked tokens belong strictly to the team and internal contributors. With no investor allocations, Hyperliquid avoids the typical VC-related selling pressure that often disrupts token markets.

Price Reaction: Was the Unlock Already Priced In?

Following Saturday’s announcement, HYPE fell about 4.6 percent. Because the token has been in a months-long downtrend, traders are highly sensitive to timing. Investors are now watching closely to see whether any portion of the $60 million allocation will reach active liquidity during the coming days.

BitMEX founder Arthur Hayes highlighted the core risk inherent in unlocks, stating that a team’s promise not to sell is never binding. The probability of ongoing sell pressure, he argued, is never zero. According to Hayes, current price behavior suggests the market has already factored this possibility into its outlook.

HYPE reached an all-time high of $59.40 in September but has fallen roughly 42 percent since then, dropping below its 200-day moving average and losing a significant long-term support zone.

The strong uptrend extending into mid-2025 began losing momentum after September 19. During the violent altcoin sell-off on October 10, several tokens dropped more than 95 percent in a single session. HYPE also plunged 54 percent that day before rebounding into the $40 range within two sessions.

Since then, price action has been defined by lower highs and weakening momentum. As a result, each new unlock is interpreted more cautiously, with traders searching for signs of potential supply inflows.

DEX Performance: Strong Throughput Despite Price Pressure

Industry analysts continue to cite Hyperliquid’s technical design and revenue engine as standout strengths. The DEX has managed nearly $330 billion in monthly volume with a relatively small team—an impressive operational footprint during a year marked by extreme volatility and repeated liquidity shocks.

Supporters argue that this level of volume, user growth and fee generation explains the token’s strong early-stage valuation. Critics, however, maintain that unlock cycles will continue to shape short-term market reactions regardless of fundamentals.

Has the Market Absorbed the Selling Pressure?

Because the unlock followed a transparent and well-known schedule, it did not create an unexpected information shock. Still, traders remain cautious, aware that the possibility of selling never disappears entirely.

The broader outlook suggests that while Hyperliquid maintains operational strength, investor psychology remains highly sensitive to token unlock events. This dynamic implies that HYPE may continue to experience elevated volatility in the near term.

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