The Hyperliquid (HYPE) token is under heavy selling pressure as concerns mount over a looming $12 billion unlock event. Trading at $43.37, HYPE has fallen more than 12% in the past 24 hours and is down 20.8% this week, raising alarm across the crypto market.
The scheduled unlock on November 29 will see team tokens representing 23.8% of the total supply released over 24 months, with analysts warning of $500 million in monthly selling pressure.
Research group Maelstrom described the upcoming vesting as a “Sword of Damocles” moment, noting that only 17% of the supply may be absorbed by buybacks.
This overhang has already caused major whales to trim their positions, with one investor withdrawing $122 million worth of HYPE while holding onto $90 million in unrealized profits.
The move stunned the market, especially given Hayes’ bold prediction just weeks earlier at the WebX 2025 conference, where he forecasted a 126x surge in HYPE over three years. His abrupt selloff, paired with mounting unlock concerns, has shaken investor confidence in Hyperliquid’s long-term trajectory.
In response to growing concerns, DBA Asset Management’s Jon Charbonneau and researcher Hasu have introduced a comprehensive proposal to overhaul HYPE’s tokenomics. The plan recommends:
Despite its current price struggles, Hyperliquid remains one of the fastest-growing decentralized derivatives exchanges, recently hitting $3.4 billion in daily trading volumes. Whether the proposed reforms can stabilize HYPE ahead of November’s unlock will be a decisive test for the project’s resilience.
Cover image from ChatGPT, HYPEUSD chart from Tradingview
