HYPE Faces $860M Token Unlock as Contributors Prepare for Major Supply Event

Hyperliquid [HYPE], a cryptocurrency project, is facing a significant supply event in October. On September 6th, contributors released only 0.19% of the scheduled allocation, worth $36.56 million.

This is less than expected and may have important implications for HYPE's market value. The actual contributor claims will determine the scale of supply pressure, which could lead to a substantial risk of dilution if they sell heavily.

Moreover, the price of these new tokens is significantly larger than the average daily spot volume, which could cause a tremendous decrease in market liquidity and put downward pressure on the price.

However, institutional demand from Bitwise's BHYP clients has been building up, with $10.5 million spent on HYPE on September 4th. This totals approximately 123,500 HYPE tokens, but is still less than one percent of the 9.92 million tokens set to be unlocked in October.

Additionally, Hyperliquid's trading activity creates continuous token purchases through a burning mechanism. In the last 24 hours, $859,500 in fees generated $823,800 in HYPE-directed revenue, funding purchases of 9,730 tokens worth $829,500. These tokens were bought near $85.27 and permanently burned.