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- HYPE drops 10% after Arthur Hayes sells 96K tokens.
- Upcoming 238M token unlocks add supply pressure.
- Long-term 126x growth forecast remains possible.
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Hyperliquid’s native token, HYPE, experienced a dramatic 10% decline on September 22, wiping over $1.7 billion off its market cap. The plunge followed BitMEX co-founder Arthur Hayes’ liquidation of his entire position—96,628 HYPE tokens valued at roughly $5.1 million. The sale came just a month after Hayes predicted a 126-fold surge in HYPE’s price over the next three years, raising eyebrows across the crypto community.
Hayes’ move triggered immediate social media discussion, with traders closely analyzing his family office, Maelstrom’s, statement. Hayes reassured investors that long-term growth remains viable, noting that “126x is still possible, 2028 is a long way off.”
Arthur Hayes(@CryptoHayes) just sold all 96,628 $HYPE($5.1M) he bought a month ago, making ~$823K(+19.2%).
— Lookonchain (@lookonchain) September 21, 2025
During his speech at the WebX Summit on Aug 25, he predicted a 126x upside for $HYPE, but is now out with less than a 20% gain.https://t.co/B6z5x7dOsv pic.twitter.com/69s0ZzIIii
Token Unlocks and Market Overhang Heighten Concerns
Investors are cautious due to an upcoming token unlock schedule. Beginning November 29, about 238 million HYPE tokens will vest linearly over 24 months. With buyback programs expected to absorb only 17% of the release, a monthly supply overhang of approximately 410 million tokens is projected.
Even major initiatives, such as the Sonnet fund slated to close in late 2025 with roughly $583 million in HYPE, may have limited impact on mitigating the oversupply. This has left traders debating whether short-term volatility could persist despite the token’s long-term bullish potential.
This is why we dumped $HYPE today. But don’t worry 126x is still possible 2028 is a long way off. https://t.co/VLSISNzbcc
— Arthur Hayes (@CryptoHayes) September 22, 2025
Additional Whale Pressure Intensifies Volatility
The selling pressure isn’t limited to Hayes. Another significant holder, reportedly Techno Revenant, recently moved 2.39 million HYPE tokens—valued at $122 million—from its wallet. This position was accumulated nine months ago at $12 per token, representing more than $90 million in unrealized gains.
Also Read: Hyperliquid (HYPE) Hits Record Highs as TVL Soars to $2.7B and DEX Volume Surges
Despite these challenges, HYPE remains a top performer since its November 2024 launch, surging roughly 1,400%. At the time of writing, the token trades near $48.50, with a market cap of $16.21 billion. Hayes continues to highlight Hyperliquid’s growth potential, pointing to fiat currency debasement and projected stablecoin fee revenue of around $255 billion annually.
Volatility Now, Opportunity Later
While recent whale activity has rattled the market, Hyperliquid’s HYPE token still holds strong long-term prospects. Traders must weigh short-term supply pressures against Hayes’ optimistic 2028 outlook, balancing caution with potential opportunity in this high-profile crypto.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
