Hyperliquid Token Unlocks Stir Market Anxiety as $12B Supply Looms
Hyperliquid's HYPE token faces mounting scrutiny as its scheduled monthly unlocks approach. The protocol will release 10 million tokens monthly starting November, potentially flooding the market with $12 billion worth of supply over 24 months. Arthur Hayes' Maelstrom Fund and other institutional players are closely tracking the developments.
A faction within the community proposes slashing total supply by 45% to mitigate dilution risks. Market participants remain divided on whether current prices adequately account for the impending supply shock. The debate highlights growing tensions between long-term protocol sustainability and short-term price stability.