On November 29, 2025, 1.75 million HYPE tokens were unlocked for Hyperliquid contributors, leading to a 4.6% price drop in the decentralized exchange market shortly thereafter. This event underscores challenges in tokenomics, as anticipated market adjustments reveal liquidity risks amid ongoing buybacks, reflecting wider implications for DeFi ecosystem stability.
1.75 Million HYPE Tokens Unlocked
The Hyperliquid DEX experienced a significant event with the unlocking of 1.75 million HYPE tokens, valued at $60.4 million. This release was part of a larger unlock of 9.92 million tokens and involved core contributors and pseudonymous developers, including iliensinc. These tokens are subject to a 24-month vesting schedule, a detail that has been openly acknowledged on social media.
The #Hyperliquid ecosystem experienced a significant token unlock event on November 29, 2025, with 1.75 million HYPE tokens being released. This unlock, part of a larger 9.92 million token release, involved core contributors and developers. The tokens are under a 24-month vesting schedule.
— 0xAvseenko (@0xAvseenko) November 29, 2025
HYPE Price Declines 4.6% Following Token Unlock
The token unlock event directly contributed to a 4.6% decrease in HYPE's price, a reaction that aligns with expected market volatility. Arthur Hayes commented on the potential for continued selling pressure:
"HYPE token holders must expect a non-zero chance of daily selling pressure, which has already been priced in by the market."
Despite this price adjustment, the drop remained within anticipated volatility parameters. Market data indicates a mixed sentiment, with no immediate regulatory concerns surfacing. Buyback mechanisms are considered crucial for counteracting sell pressure, although liquidity risks persist. A positive indicator was observed as some holders moved their tokens off exchanges.
Historical Unlocks Suggest Rebound Potential
Past token unlock events have resulted in comparable price adjustments, which were anticipated by the community. The protocol features a deflationary buyback mechanism, setting it apart from the inflationary models common in other DeFi protocols. Analysts suggest that, despite inherent risks, vesting-related releases may stabilize if network fundamentals remain robust. Historical trends indicate a potential for rebound if economic incentives prove favorable.