The development team for the Hyperliquid decentralized exchange (DEX) has confirmed that 1.75 million HYPE tokens were unlocked for developers and core contributors on Saturday. At the time of the event, the tokens were valued at over $60.4 million, sparking community discussion about potential selling pressure on the asset.

Developer Clarity on Vesting Schedule

In a statement, pseudonymous Hyperliquid developer iliensinc clarified that the token release is part of a previously announced vesting schedule. The event also marked the first anniversary of the project’s token generation and landmark airdrop, which rewarded early users and community members instead of venture capitalists.

To provide perspective, iliensinc noted that the project’s initial airdrop was one of the largest in history, currently valued at approximately $9.5 billion. The developer also highlighted that because Hyperliquid never raised external capital, there are no scheduled token unlocks for private investors.

Market Impact and Analyst Views

Following the unlock, HYPE’s market price saw a decline of approximately 4.6%. Addressing concerns, BitMEX founder and market analyst Arthur Hayes suggested that such events are often anticipated by the market. He stated that token holders should expect some degree of daily selling pressure, which he believes has already been factored into HYPE’s price since its decline began in September.

The HYPE token has fallen about 42% from its all-time high of $59.40, which was reached in September. It currently trades below its 200-day moving average, a key technical indicator. The token previously experienced significant volatility during the October 10 market crash, falling 54% in a single day before recovering to the $40 level within 48 hours.

Despite recent price action, industry analysts have praised Hyperliquid for its platform’s performance, noting its ability to generate substantial revenue and handle over $330 billion in monthly trading volume with a small team.

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