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.
HYPE's price trends to the downside on the daily chart. Source: HYPEUSD on Tradingview
Arthur Hayes’ Ferrari Sale Sparks Hyperliquid (HYPE) Selloff
Adding fuel to the bearish sentiment, BitMEX co-founder Arthur Hayes recently exited his entire HYPE position, cashing out over 96,000 tokens for approximately $4.8 million. Hayes revealed on social media that the sale was to cover a deposit for his new Ferrari 849 Testarossa, generating nearly $823,000 in profit.
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.
Tokenomics Reform Proposal: Can It Restore Trust?
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:
- Burning 45% of HYPE’s supply, including unminted tokens allocated for emissions and assistance funds.
- Eliminating Hyperliquid’s fixed 1 billion supply cap, aligning with flexible issuance models seen in Ethereum and Solana.
Supporters argue the proposal could remove distortions in fully diluted valuation (FDV) metrics and create a fairer assessment of Hyperliquid’s fundamentals. However, critics warn that cutting emissions may weaken growth incentives and reduce flexibility in responding to future challenges.
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