HYPE Price Drops: Major Holders Selling Off Against Ecosystem Buyback Efforts

On September 22, 2025, the well-known trader TechnoRevenant carried out a major sale of 377,000 HYPE tokens, with a market value of about $16.2 million at the time Arthur Hayes Dumps HYPE Holdings [ 3 ]. This was the trader’s second large-scale sell-off that day, following an earlier withdrawal of 2.39 million HYPE tokens from a main wallet (0x316f…e678), which amounted to $122 million HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. These tokens, originally purchased nine months prior at roughly $12 each, resulted in unrealized profits exceeding $90 million, showcasing the token’s significant price growth since acquisition TechnoRevenant allegedly withdrew all 2.39 million HYPE tokens from the main wallet [ 2 ]. The sale triggered a 12% drop in HYPE’s price to $49.20, even as Hyperliquid’s daily trading volume stayed above $10 billion HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ].

This wave of selling happened during a period of increased market turbulence, with other major players like Arthur Hayes and trader Ansem also closing their positions. Hayes, who co-founded BitMEX, sold 96,628 HYPE tokens for $5.1 million, locking in a profit of $823,000 Arthur Hayes Dumps HYPE Holdings [ 3 ]. He explained that his move was motivated by worries about an upcoming token unlock event set to start on November 29, which will introduce 237.8 million HYPE tokens into the market, adding $500 million in monthly selling pressure over two years HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. Ansem contributed to the negative outlook by selling 10,126 HYPE tokens valued at $492,000 HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. These coordinated sales heightened concerns about excess supply, with Hayes’ analysis via the Maelstrom Fund highlighting a mismatch between the projected $85 million in monthly buybacks and the $500 million in unlock-related selling, resulting in a $410 million monthly surplus HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ].

Supporters within the Hyperliquid community and ecosystem have defended the token’s underlying value, dismissing suggestions to burn 45% of the total supply. They argue that current deflationary features—such as spot trading fees, HyperEVM gas charges, and auction fees—naturally reduce supply based on platform activity HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. Programs like Hyperunit and Hyperdrive have set aside $2.67 million and $4.5 million in fees, respectively, for HYPE buybacks, while DAOs like Hyperion’s HYPD and HypeStrat’s SONN continue to compete for HYPE allocations, fostering consistent demand HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. Institutional involvement, including wallet support from Phantom and Rabby, also bolsters long-term price stability by allowing HYPE staking for fee discounts HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ].

The market’s response to these large sales highlights the difficulty of managing speculative trading alongside fundamental development. Although HYPE has climbed more than 660% since its debut, its price remains sensitive to actions by major holders. Observers point out that competition from platforms like Lighter.xyz and the rise of leveraged trading—such as Aster exchange’s 300x leverage—could further intensify price volatility HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ]. Nevertheless, Hyperliquid’s ecosystem continues to generate income, with annualized platform fees expected to grow from $1.2 billion to $255 billion by 2028 Arthur Hayes Dumps HYPE Holdings [ 3 ].

Arthur Hayes’ optimistic projection of a 126-fold increase in HYPE’s price by 2028 remains a key talking point, even as his recent sale underscores the tension between long-term confidence and short-term market realities Arthur Hayes Dumps HYPE Holdings [ 3 ]. Hayes maintains that the upcoming unlock does not undermine his forecast, citing the potential for stablecoin market expansion and a growing Hyperliquid user base Arthur Hayes Dumps HYPE Holdings [ 3 ]. Still, skeptics argue that the current buyback strategies are insufficient to absorb the looming influx of tokens, especially as developers holding vested tokens may be inclined to sell HYPE Whale Exit Sparks Concerns Over DeFi Market Stability [ 1 ].

The combined effects of large holder activity, token unlocks, and leveraged trading have created a challenging environment for HYPE. While decentralized buyback efforts and institutional participation provide some support, the market remains vulnerable to volatility from significant liquidations. The upcoming months will be a crucial test for Hyperliquid’s tokenomics as the ecosystem strives to balance supply control with ongoing growth.