HYPE token holders are closely watching the actions of the Hyperliquid team as significant monthly token unlocks begin to hit the market. The specter of a substantial team sell-off looms large, raising questions about its potential impact on HYPE's price trajectory and overall market stability.
Early Dispositions and Price Impact
Following the inaugural unlock on November 29th, the Hyperliquid team received 1.745 million HYPE tokens. While a portion was strategically staked or sold via OTC desks like Flowdesk, a considerable amount—over 900,000 HYPE—remained on the spot market. Further on-chain data quickly revealed that some team members offloaded an additional 75,000 HYPE, valued at over $2.2 million, leading to an immediate market reaction. This selling pressure saw HYPE briefly dip below the $30 mark, representing a notable 17% decline from its weekly high. With these initial moves, market participants are now bracing for the ongoing monthly unlocks, which are set to release approximately 10 million HYPE each month until October 2027.
Ongoing Pressure and Market Dynamics
The consistent flow of unlocked tokens is a primary concern for analysts, who anticipate that team allocations could be a significant source of selling as founders look to realize gains. Although individual team members may adopt varying strategies—some choosing to stake, others to sell—the overarching expectation is that a substantial portion will eventually enter the market. This sentiment is compounded by declining funding rates, indicating a bearish shift in the short term. While efforts like the project's buyback program are in place, purchasing around 21,700 HYPE tokens in a 24-hour period, these are currently insufficient to counteract the inflationary pressure from staker emissions (26,700 HYPE), resulting in a net increase of tokens on the market. Unless new treasury demand materializes or broader market sentiment improves, HYPE is likely to remain under considerable pressure as further monthly unlocks approach.
