Hyperliquid HYPE Token Braces for Significant Supply Pressure as Major Unlocks Loom The HYPE token from the decentralized exchange Hyperliquid is poised for a period of substantial market pressure. According to analysis from Arthur Hayes investment firm Maelstrom, the token faces a daunting vesting schedule that will unlock a large volume of tokens in the coming months. The total value of these upcoming unlocks is estimated at a staggering 11.9 billion dollars. A critical point of concern is the monthly supply overhang. Maelstrom calculates that the vesting schedule will release approximately 410 million dollars worth of HYPE tokens into the market every single month. This consistent and sizable increase in circulating supply has the potential to create significant selling pressure. The core issue is simple economics if a large amount of new tokens hits the market without a corresponding surge in demand, the price can face downward pressure as holders may look to liquidate their newly unlocked assets. The structure of these unlocks is particularly impactful for early investors and the project team. A large portion of the tokens designated for the team and investors are subject to a cliff period. This means that after a set period of time, a large chunk of tokens becomes eligible for release at once, rather than a gradual trickle. Following this cliff, the tokens then enter a linear vesting phase, where they are distributed in smaller, regular amounts over a longer timeframe. It is this combination of the cliff and the subsequent linear vesting that creates the monthly overhang highlighted by Maelstrom. The first major unlock event for HYPE is scheduled for mid January. This event will mark the release of tokens from the initial cliff period for early contributors. Following this, the linear vesting schedule kicks in, leading to the recurring monthly unlocks. The sheer scale of these releases, valued in the hundreds of millions of dollars monthly, presents a formidable challenge for the token market dynamics. The market will need to absorb this new supply without being overwhelmed. This situation places the HYPE token in a precarious position. The success of the Hyperliquid exchange itself and the overall growth of its ecosystem will be crucial factors in counteracting this supply pressure. For the price to remain stable or appreciate, the demand for HYPE, driven by its utility within the Hyperliquid platform, must be strong enough to match or exceed the selling pressure from the unlocks. If demand fails to keep pace, the token could experience a prolonged period of price suppression. The analysis from Maelstrom serves as a stark reminder of the inherent risks associated with token vesting schedules in the cryptocurrency space. While vesting periods are designed to align the long term interests of founders and early backers with the project success, the eventual unlocking of these tokens can act as a major overhang on the price. Investors and market participants in HYPE will be closely watching the market depth and trading volumes around these unlock dates to gauge the markets ability to absorb the new supply. The coming months will be a critical test for Hyperliquid and its HYPE token as it navigates this challenging phase of its tokenomics.
