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HYPE Token Unlocks: 344K Daily Supply Influx Threatens Hyperliquid's Price Stability

HYPE Token Unlocks: 344K Daily Supply Influx Threatens Hyperliquid's Price Stability

If you're keeping an eye on the crypto space, especially around decentralized exchanges and their native tokens, a recent tweet has everyone buzzing. Posted by @aixbt_agent on September 12, 2025, it highlights a potential supply crunch for Hyperliquid's HYPE token. The core message? Team unlocks kick off in just 79 days, dumping 344,000 tokens into the market every day—that's a whopping 6.5 times more than what current buybacks can handle.

What Is Hyperliquid and Its HYPE Token?

For those new to this, Hyperliquid is a decentralized exchange (DEX) specializing in perpetual futures trading. Think of it as a high-speed platform where you can trade contracts without expiration dates, all on-chain and super fast. Its native token, HYPE, powers the ecosystem—used for governance, staking, and more. Launched with a total supply of around 1 billion tokens, HYPE has been making waves, currently trading at about $57 USD according to CoinMarketCap.

But like many crypto projects, HYPE comes with a vesting schedule. This means not all tokens are circulating right away; some are locked up for team members, advisors, and early contributors to prevent immediate dumps and encourage long-term commitment.

Breaking Down the Unlock Details

According to the tweet, these unlocks start in late November 2025—precisely 79 days from the post date. Each day, 344,000 HYPE tokens will hit the market. To put that in perspective, that's roughly equivalent to $19.6 million at current prices, assuming no major fluctuations.

The real kicker is the comparison to buybacks. Buybacks are when a project uses funds (often from fees or treasuries) to purchase and remove tokens from circulation, which can help support the price by reducing supply. Here, the incoming supply from unlocks is 6.5x greater than what buybacks can absorb, meaning the market might struggle to keep up without new demand stepping in.

This aligns with broader reports on HYPE's tokenomics. For instance, The Defiant notes that core contributor unlocks begin in late November, releasing about $450 million worth of HYPE monthly. Breaking it down daily, that's close to the 344K figure mentioned. Other sources like CryptoRank and DefiLlama provide detailed vesting calendars, showing that a significant portion—around 10 million tokens per month—will vest through 2027.

Potential Impact on Price and Market Sentiment

In simple terms, more tokens entering circulation without matching buy pressure can lead to price dilution. It's like suddenly increasing the number of shares in a company without growing the business—prices often dip until equilibrium is found.

Replies to the tweet echo this concern. One user asks for a noob-friendly explanation, and @aixbt_agent responds: "more tokens hitting market than can be absorbed = price goes down until demand catches up." Others speculate on burns or shifts in token dynamics, highlighting how supply inflation can overshadow even the strongest narratives if utility doesn't keep pace.

For Hyperliquid, which has seen its token surge recently (up 25% week-over-week as per Coinbase), this could be a stress test. If the platform's trading volume and user growth continue to boom, demand might soak up the extra supply. But if not, we could see volatility ahead.

Why This Matters for Meme Token Enthusiasts

While HYPE isn't your typical meme coin like DOGE or PEPE, it carries that "hype" factor—pun intended—with its rapid rise and community buzz. At Meme Insider, we track these dynamics because they often mirror patterns in meme tokens: explosive growth followed by supply challenges. Lessons from HYPE's unlocks could apply to your favorite memecoins, where poor tokenomics can turn hype into a dump.

If you're holding or eyeing HYPE, keep tabs on on-chain metrics and upcoming announcements. Tools like Tokenomist offer deep dives into supply schedules to help you stay ahead.

In the ever-volatile world of crypto, forewarned is forearmed. What do you think—will HYPE weather the storm, or is a correction on the horizon? Share your thoughts in the comments below.

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