HYPE Tokens Plummet as Crypto Funds Queue $150M for Withdrawal
The Hyperliquid (HYPE) token has seen its price drop to around $58 after crypto funds queued nearly $150 million in locked tokens for withdrawal.
Data from Block Liquidity shows that Multicoin Capital, a hedge fund and analytics platform, is holding a combined $138.78 million in staked HYPE, with roughly 83% or about $116 million sitting in pending withdrawal.
This means that the price of HYPE has fallen by around 8% since Wednesday morning, according to CoinGecko data.
The withdrawals dwarf the thin spot market for HYPE, which is significantly smaller than the perpetuals market. Trading volume in the past 24 hours was more than $415.4 million, but the spot market only recorded $72.8 million in HYPE spot volume across the roughly 28 hours to Wednesday morning.
The unstaking by Selini Capital appears to be linked to the shutdown of the HIP-3 CASH perpetuals markets run by DreamCash. Managing partner Tushar Jain denied selling the tokens and stated that they were not intended for selling, but rather for a new deployment in the Hyperliquid ecosystem.