Hyperliquid Faces $860M Token Unlock: Can Hype Absorb the Supply?
Hyperliquid's contributors are set to receive a massive chunk of HYPE tokens on October 6th, valued at approximately $860 million. This represents nearly 3.9-4.5% of the circulating supply.
This token unlock has raised concerns about potential dilution and market liquidity. Tokenomist data shows that in September, contributors released just 0.19% of scheduled tokens, worth $36.56 million, far below the intended allocation.
Bitwise's BHYP clients have been buying HYPE tokens, with a total of $166.3 million invested so far. However, this demand is not enough to offset the potential supply increase caused by the October token unlock.
The continuous burning of HYPE tokens also creates demand for the asset. According to OnChain Lens, 48.42 million HYPE have been burned since inception, accounting for only 4.84% of the 1 billion max token limit.