HYPE Token Slides as Unlock Schedule Overpowers Hyperliquid’s Record Revenue

TLDR: 

• Core contributor unlocks release nearly 10M HYPE monthly, creating sustained selling pressure through 2027.
• Hyperliquid buybacks absorb only a fraction of new supply, leaving the token structurally net inflationary.
• Governance approval to mark 37M HYPE as burned improves optics but does not change unlock dynamics.
• Falling market share and spot volumes add stress as supply expansion continues despite strong revenues.

HYPE token faces renewed scrutiny as market participants assess sustained price weakness despite Hyperliquid’s strong operating performance. 

The token remains down nearly 60% from its September peak, even as the platform posts record volumes and fee generation. 

Recent commentary from market analysts attributes the disconnect to structural supply dynamics rather than deteriorating business fundamentals. 

Unlock schedules, buyback mechanics, and governance actions have become central to the current valuation debate surrounding HYPE.

Unlock Schedule and Persistent Supply Pressure

Market discussion intensified after a detailed thread by DeFi commentator Hanzo outlined the scale of upcoming HYPE token unlocks. 

According to the post, core contributor allocations representing 23.8% of total supply began unlocking on November 29. This schedule introduces roughly 9.9 million tokens monthly for the next twenty-four months.

At prevailing prices, these unlocks translate to approximately $270 million in new supply each month. 

Hyperliquid’s aggressive buyback program, funded by 97% of protocol fees, absorbs an estimated $90 million monthly. The resulting gap leaves sustained net selling pressure that market demand has not matched.

Early activity following the initial unlock reinforced investor caution. On-chain data referenced in the tweet showed more than 600,000 tokens sold through over-the-counter transactions shortly after release. 

Additional wallet movements reflected rapid profit-taking by large holders, coinciding with an immediate double-digit price decline.

Buybacks, Governance, and Market Share Shifts

Hyperliquid governance has sought to address sentiment through formal recognition of 37 million HYPE tokens held in the Assistance Fund as burned. 

Validators are signaling approval for the vote concluding later in December. These tokens are already inaccessible, but official classification reduces reported circulating supply by roughly 13%.

The same analysis argues this governance action remains largely cosmetic. While it improves headline metrics, it does not alter the remaining 238 million tokens scheduled for release through October 2027.

 Monthly unlocks continue unaffected, maintaining structural pressure on the market.

Operational data adds further context. Daily buybacks acquire about 21,700 HYPE, while staking emissions add approximately 26,700 tokens. 

Even with record revenues, the protocol remains net inflationary. Meanwhile, perpetual DEX market share reportedly declined as competitors launched incentive programs, and spot volumes contracted sharply.

Together, these factors frame the current reassessment of the HYPE token. Commentary emphasizes that Hyperliquid’s revenue strength and active community persist. 

However, the arithmetic of supply expansion, combined with softer trading activity, continues to dominate price behavior during the ongoing unlock period.

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