unfortunately, hypethe native cipher of superfluidity There is no good news when it comes to the ecosystem. In fact, there is one particular piece of news that could have a negative impact on prices.
Negative news regarding the price of HYPE (Hyper Liquid)
Starting November 29th, a large scale unlocking of tokens is planned.
Please note the maximum supply. hypeis almost 1 billion tokens and so far 340 million It has been distributed.
From next week, any number of people 238 million HYPE tokens The lock will be released. is equivalent to 23.8% of total supply.
But the good news is that they don’t unlock all at once, but linearly over 24 months. However, the problem is that around 10 million tokens still need to be unlocked every month, which equates to just over 200,000 per day.
There are currently 340 million tokens in circulation, and around 3% will be unlocked every month for the next two years, likely increasing selling pressure in the months starting in December.
Many analysts see this scenario as a bearish scenario where the price will drop significantly if the newly released tokens are not absorbed. buyback.
The price of hype
HYPE entered the cryptocurrency market one year ago at the end of November 2024.
Initially, the price rose significantly, rising from $3.2 to $32 in just three weeks.
Then there was a big correction, dropping to $10, but then a new rally followed.
Thanks to a prolonged rally that lasted several months, the stock hit an all-time high of nearly $60 in September of this year, but a long decline began in late September.
So far, the decline has continued for two months, with the price below $32, but it may not be over yet.
It is worth noting that $32 was also the first peak reached at the end of 2024.
The real problem is not only that the current sell-off has been going on for two months and is probably not over yet, but also the increased selling pressure that is expected to begin in December with the unlocking of the tokens, which could last up to two years.
However, please note the following: Buyback by burn is also planned. in fact, 97% of commission from superfluidity The platform will be used to buy back and write Hype Tokens.
The problem is that these buybacks have already begun and so far have failed to halt the decline of the past two months.
Fortunately, in the last few days Hyperliquid has enabled the so-called growth mode. This will reduce taker fees on new markets by 90%, theoretically increasing trading volumes, increasing platform revenue, and increasing buybacks.
However, at the protocol level, there doesn’t seem to be much progress recently.
superfluidity
superfluidity is the world’s leading decentralized exchange (DEX) that trades perpetual futures contracts (PERPs) for cryptocurrency prices.
it is TVL DeFiIt exceeded $4.3 billion, but before the cryptocurrency market crash in November, it was over $6 billion.
it has a strong rival asterHowever, the TVL is significantly lower ($1.3 billion).
What should be noted is the most famous DEX in circulation, uniswapit stops at $3.9 billion, but this is probably due to the fact that Uniswap does not support PERP.
Perpetual contracts not only allow you to buy and sell, but more importantly, they allow you to open leveraged long and short positions, which is the driving force behind HyperLiquid’s success.
Furthermore, it is a DEX that is used in a similar way to CEX, so it is no wonder that it has attracted so many users and so much money.
For example, it has recorded over $260 billion in trading volume over the past 30 days, which is less than Astor’s $296 billion, but still significantly higher than Uniswap’s $92 billion.
Hyper Liquid vs. HYPE
However, it is important to specify that the remarkable success of Hyperliquid, DEX, does not necessarily equate to the remarkable success of its blockchain’s native crypto, namely HYPE.
In fact, Hype does not play a particularly important role within DEXs, and with such unique tokenomics, it may have a pretty hard time appearing in the crypto market, especially going forward.
In fact, the recent decline may be influenced by the upcoming unlock start, but in such cases, “selling rumors” may be followed by “buying news.”
A lot will depend on the actual impact on price of unlocking, but since these are unlocked linearly every day, it might not take you long to realize their value.
