Hyperliquid's native token, HYPE, experienced a decline of over 6% following the unlock of 1.75 million tokens designated for its development team. This unlock, valued at more than $60 million, has raised concerns among investors regarding potential increased selling pressure in the market.
The price of HYPE fell from $36.07 to $33.46 within a 24-hour period after the distribution event on November 29, 2025. This marks a significant 6.82% decrease in the token's value.
Developer Token Unlock and Market Reaction
On November 29, 2025, Hyperliquid distributed 1.75 million HYPE tokens to its core contributors as part of a scheduled vesting program. The value of this release was approximately $60.4 million. The subsequent price drop indicates a negative market reaction to the increased supply.
This distribution followed a one-year lock-up period and is consistent with the project's long-term token release strategy. Developers and contributors are allocated 23.8% of the total supply of 1 billion HYPE tokens, with these tokens being gradually released over a three-year vesting schedule.
Market analyst Arthur Hayes commented on the potential impact of such unlocks, stating that even scheduled releases can create selling pressure. He noted, "Even if the team pinky swears to not sell, nothing is holding them to that."
Historical Context and Platform Performance
The recent token unlock occurred one year after Hyperliquid's substantial token airdrop in November 2024. During that event, 270 million HYPE tokens were distributed to users, which would be valued at $9.5 billion at current prices. Hyperliquid has intentionally avoided raising funds from external investors, opting instead to cultivate a community-driven model for its growth.
Pseudonymous developer Iliensinc confirmed that the unlock on Saturday was in accordance with the project's initial distribution plan. He characterized it as a continuation of the vesting program and acknowledged the one-year anniversary of the token's launch.
Despite recent price volatility, Hyperliquid's decentralized exchange continues to process a significant trading volume, reportedly around $330 billion monthly. The project is recognized for its robust on-chain revenue generation and operates with a lean team structure.
The HYPE token previously reached an all-time high of $59.40 in September. However, it has since experienced a 42% decline from that peak and is currently trading below its 200-day moving average. During the market downturn on October 10, HYPE saw a sharp 54% drop in a single day before recovering to trade above $40.