The HYPE token experienced a notable whale-led sell-off as large holders began withdrawing positions ahead of a team vesting unlock on Nov. 29; the move highlights an imminent monthly unlock of roughly $500 million and a potential ~410 million USD supply overhang after buybacks.
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Whales are selling HYPE ahead of Nov. 29 vesting unlocks
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Team vesting will distribute about $11.9 billion HYPE over 24 months, creating monthly unlock pressure.
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On-chain data shows one wallet realized ~$122M withdrawals and roughly $90M in unrealized gains nine months after purchase.
HYPE token sell-off seen as whales withdraw before Hyperliquid vesting; monitor unlocks and price risks now—read our analysis and key takeaways.
The whale started withdrawing their HYPE tokens after nine months of holding, with an unrealized profit of about $90 million.
Large cryptocurrency investors, often called whales, began reducing positions in Hyperliquid’s native HYPE token amid growing concern over an upcoming vesting schedule that will unlock a substantial portion of team allocations.
On Monday, wallet address “0x316f” withdrew approximately $122 million worth of HYPE tokens. The position was originally acquired at about $12 per token and represented roughly $90 million in unrealized gains nine months after purchase, according to on-chain tracking reported by Lookonchain (plain text).
Source: Lookonchain
The sell-off intensified following a rally that pushed HYPE to an all-time high near $59.29 on Thursday. Market participants are watching a major liquidity event scheduled for Nov. 29, when team allocations begin unlocking one year after the project’s genesis event.
According to the Hyper Foundation (plain text), 23.8% of total supply allocated to core contributors will start unlocking on that date. The vesting plan will release roughly $11.9 billion worth of HYPE over 24 months to team and contributor pools.
HYPE token distribution. Source: Hyperfnd.medium.com
Research from Maelstrom (plain text) frames this as a “Sword of Damocles” for token price resilience. Maelstrom’s analysis estimates monthly unlocks near $500 million, with buyback programs expected to absorb only ~17% of those tokens—leaving an estimated $410 million in potential supply overhang each month, according to Maelstrom researcher Lukas Ruppert.
Source: Maelstrom
What triggered the recent HYPE token selling?
The expectation of the team vesting unlock on Nov. 29 triggered profit-taking and pre-emptive withdrawals by large holders. HYPE token traders and on-chain watchers flagged unlocking schedules and projected monthly token flow as the primary catalysts for selling pressure.
How large was the whale withdrawal and what profits were involved?
Wallet “0x316f” withdrew about $122 million in HYPE that had been purchased at roughly $12 per token. Nine months after acquisition the position showed nearly $90 million in unrealized profit, prompting what on-chain analysts described as a profit-taking exit.
Why is the vesting schedule important for HYPE price dynamics?
Vesting defines when team and contributor tokens become liquid. The Hyper Foundation’s plan will distribute nearly $11.9 billion of HYPE over two years, creating predictable monthly supply additions that can exert downward pressure if not offset by demand or buybacks.
Will whales shift to competing tokens?
Some large holders are reallocating to alternatives. On Monday, address “0x220” bought about $10.5 million in Aster tokens across wallets and currently holds over $6 million in unrealized profit, according to on-chain tracking by Lookonchain (plain text).
Top DEX tokens by market capitalization. Source: CoinMarketCap
Over the past week Aster’s token rose by more than 1,700%, reaching a market cap near $2.5 billion. Meanwhile, HYPE declined 7.9% during the same period to trade around $49.34 at the time of reporting, per CoinMarketCap (plain text) pricing snapshots.
Frequently Asked Questions
How much HYPE will unlock on Nov. 29?
About 23.8% of the supply allocated to core contributors begins unlocking on Nov. 29, with the full team allocation vesting over 24 months and total distributed tokens estimated at roughly $11.9 billion.
Can buybacks absorb the monthly unlocks?
Maelstrom’s estimates indicate buybacks will absorb roughly 17% of monthly unlocks, leaving an estimated $410 million of potential monthly supply entering markets that must be absorbed by demand to avoid price pressure.
Key Takeaways
- Immediate catalyst: Whale profit-taking and Nov. 29 vesting expectations drove recent selling.
- Supply risk: Team vesting distributes ~ $11.9B HYPE over 24 months with ~ $500M monthly unlocks.
- Market response: Some liquidity shifted to Aster; HYPE price corrected amid heightened unlock risk.
Conclusion
Early whale withdrawals and the looming Hyperliquid vesting schedule place the HYPE token under short-term scrutiny. Investors should monitor on-chain unlocks, buyback programs and real-time trading volumes. Expect heightened volatility through the initial months of vesting and adjust risk management accordingly.
