HYPE Faces $100 Million Supply Test as Whales Unstake Tokens

HYPE, the native token of the Hyperliquid Layer 1 blockchain, is facing a significant supply test as whale addresses unstaked approximately $90.4 million in tokens and another $12.15 million was moved to Coinbase Prime.

The five whale addresses that unstaked the tokens were subject to a seven-day lockup ending on October 1, which means they may become transferable after that date. This has raised questions about whether ongoing buybacks and treasury accumulation can offset the tokens that become transferable after unstaking or move into institutional custody.

The immediate market question is whether Hyperliquid Strategies' plans to accumulate HYPE and stake substantially all of its holdings can mitigate the impact of these supply events. As David Schamis, CEO of Hyperliquid Strategies, stated in an earnings statement on August 27, 'We more than doubled our HYPE treasury.'

The company's Assistance Fund converts trading fees into HYPE through automated on-chain purchases and then burns the tokens, reducing the token supply as protocol activity generates fees. Approximately 238 million HYPE tokens are scheduled to vest to core contributors beginning November 29, 2025.