Hyperliquid Unlock Dilutes HYPE Holders by $331M amid $268M+

Hyperliquid unlocks 12.46M HYPE (5.5% supply increase), $331M dilution — $268M more due Feb 6

  • Hyperliquid unlocked 12,457,813 HYPE tokens from a founding vesting allocation, increasing circulating supply by 5.5% and diluting holders by $331 million.
  • Circulating supply rose from 225,927,502 to 238,385,315 HYPE in an instant, raising market capitalization by the same proportion.
  • The project has a scheduled further release of about $268 million on February 6, according to the token schedule.
  • HYPE has fallen about 6% in the past month and 36% over six months; a November 29 unlock of roughly $345 million also contributed to losses.
  • Aster, a competitor on BNB Chain favored by Binance leadership, has seen its token AST rally as HYPE declined, adding competitive pressure.

Hyperliquid conducted a vesting release today that allowed core contributors to sell 12,457,813 HYPE tokens, increasing the token’s circulating supply and diluting existing holders. A vesting release is an unlocking of previously restricted tokens that can then be sold on the market.

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The circulating supply jumped from 225,927,502 to 238,385,315 HYPE, a 5.5% increase, producing an immediate dilution valued at $331 million. Circulating supply is the number of tokens available to trade; market capitalization equals price multiplied by that supply.

The project’s public token schedule shows an upcoming release of about $268 million on February 6. Large scheduled unlocks can put downward pressure on price as investors factor future dilution into bids.

HYPE’s price has fallen about 6% in the past month and roughly 36% over six months. On November 29, Hyperliquid executed another large unlock that diluted holders by about $345 million. Adding that event, today’s unlock, and the February release totals roughly $945 million in dilution within under three months.

The platform faces competition from Aster, a BNB Chain rival linked to Binance leadership, whose token AST has rallied while HYPE has declined. Competition offers similar trading features and may affect investor demand for HYPE.

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