Hyperliquid News Today: DeFi Faces a Crucial Challenge: Hyperliquid Releases $314M in Tokens

Hyperliquid, a prominent decentralized perpetuals platform, is preparing to release $314 million in HYPE tokens on November 29, igniting extensive discussion about market volatility, openness, and possible selling pressure. This release, which will see 9.92 million HYPE tokens—representing 2.66% of the total supply—enter circulation, is the first significant token unlock since the project's Token Generation Event (TGE) in November 2024. The announcement has

, with both detractors and advocates debating its impact on the platform and the wider crypto sector.

The cliff unlock method, which distributes all tokens at once, has caused concern among investors. Community member Andy published an open letter urging the team to directly address these worries, suggesting that allowing core contributors and airdrop participants to sell could unsettle the market. "Letting the team and airdrop recipients finally sell will continue to cause unrest until you speak to the community openly," Andy stated,

from previous token unlocks that led to steep price drops.

Arthur Hayes, co-founder of BitMEX, echoed these apprehensions, arguing that verbal commitments from the team do little to reduce the risks associated with the unlock. "Even if the team promises not to sell, there’s nothing to guarantee that," he posted, noting that the market is already factoring in the risk of dilution. Hayes

since July as proof of this trend, and asserted that only significant revenue increases could offset the uncertainty.

The reaction from the community has been varied. Some are calling for more openness, while others support the team's entitlement to their tokens. Proponents claim that Hyperliquid’s strong performance—ranking among the top decentralized perpetuals exchanges by volume—justifies the distribution. "The team deserves their portion," one user commented,

as "unnecessary panic."

Market statistics add further complexity to the conversation. Although HYPE’s price has fallen 23% in the last month, Hyperliquid’s trading activity remains high. In November, perpetual DEXs processed between $28 and $60 billion in daily trades, with Hyperliquid accounting for $259 billion in monthly volume, according to DefiLlama. Nevertheless, technical indicators suggest a bearish outlook:

of $59.30 and is currently valued at $31, with moving averages signaling a "Strong Sell."

The timing of the unlock has also led to speculation. Blockchain data showed the Hyperliquid team unstaked 2.6 million HYPE tokens ($85.8 million) 29 hours before the planned unlock. While unstaking does not necessarily mean selling, this action

. Hyperliquid’s vesting plan, which extends most token releases through 2027–2028, indicates that the November 29 unlock is only the beginning, even though rumors of monthly $300 million+ unlocks online contradict the project's official schedule.

With the unlock date drawing near, opinions remain split. Market participants and analysts are watching to see if Hyperliquid’s team will opt for off-market deals, provide liquidity, or retain their tokens for the long term. The outcome may influence how future token unlocks are handled across the fast-changing DeFi sector.