Hyperliquid unlocks 1.2 million HYPE: team token distribution approaching, market impact and price forecast

According to the official Discord announcement, the decentralized perpetual contract trading platform Hyperliquid’s development organization Hyperliquid Labs has recently unstaked approximately 1.2 million HYPE tokens. These tokens are scheduled to be distributed to the project’s core contributors on January 6, 2026. Based on the current price, they are valued at about $31 million.

Key Event: Unlock Schedule and Market Reaction

Hyperliquid Labs’ token distribution to the team is part of its established unlock plan. Core contributors have been allocated over 230 million HYPE tokens, accounting for approximately 23.8% of the total supply of 1 billion tokens. The token release follows a “one-year cliff + linear release” schedule. This means team tokens are fully locked for one year after project launch, after which they will be gradually released over several years.

Hyperliquid co-founder iliensinc further explained on Discord that subsequent team token distributions (if any) will be fixed on the 6th of each month, providing a predictable rhythm for the market.

Market Impact: Selling Pressure and Long-term Confidence

Market reactions to this news have been mixed. Some investors believe that a clear and transparent unlock schedule is preferable to sudden large sell-offs, which can help the market absorb supply pressure. However, there are concerns that early contributors might take profits after receiving tokens, potentially exerting short-term downward pressure on the token price.

From a fundamental perspective, Hyperliquid’s team has adopted a structured release plan aimed at deeply aligning their interests with the project’s long-term success, avoiding short-term cash-outs that could harm ecosystem development.

Token Status and Latest Price

As of December 28, 2025, according to Gate data, the spot trading price of HYPE is approximately $26.065, up 0.55% in the past 24 hours.

Currently, HYPE’s circulating supply is about 238 million tokens, with a total market cap of approximately $6.245 billion. Its all-time high was reached in September 2025 at $59.40, and the current price remains well below that peak.

Future Price Forecast and Analysis

HYPE’s future price movement will be influenced by this unlock event, market competition landscape, and the project’s own development.

In the short term, the market will closely watch the behavior of recipients after the January 6 token distribution. If a concentrated sell-off occurs, it could test support around $25.00. Conversely, if the team demonstrates confidence in long-term holding, it may reinforce the current price range. In the medium term, Hyperliquid faces fierce market competition. Its market share has declined from a peak of about 70% to around 10%. Competitors like Aster and Lighter, leveraging advantages such as ultra-high leverage and zero fees, have attracted a large user base and trading volume. Long-term value will depend on Hyperliquid’s ecosystem expansion as a high-performance Layer 1 blockchain. The adoption of HyperEVM and plans to expand perpetual contracts into broader asset classes like stocks and forex will be key growth catalysts.

A positive long-term signal is Hyperliquid’s strong profitability. Its annual revenue has exceeded $800 million, with most fees used for buybacks and token burns. By August 2025, it had repurchased tokens worth over $715 million, creating ongoing deflationary pressure.

Project Background and Market Competition

Hyperliquid is a high-performance decentralized exchange built specifically for perpetual contract trading, operating on a custom Layer 1 blockchain. Its core advantage lies in providing a trading experience comparable to top centralized exchanges, with sub-second transaction confirmation times and throughput of up to 200,000 orders per second. Hyperliquid employs a fully on-chain central limit order book model, offering better price discovery and lower slippage than automated market makers. Its super liquidity provider vault allows users to participate in market making and earn rewards.

Despite challenges from market share erosion, Hyperliquid remains a solid player with a good reputation among users seeking fast execution, deep liquidity, and professional trading experience.

As of December 30, HYPE’s price on Gate has shown a resilient +8.11% increase over the past week, despite the token unlock news. This may indicate that some market participants have already priced in this expectation. Hyperliquid’s daily trading volume still maintains between $10 billion and $15 billion. Whether its price can remain stable ahead of the fixed monthly token unlock will directly test market confidence in the project’s fundamentals and the team’s long-term commitment.

As January 6 approaches, all eyes will focus on on-chain data to observe where the $31 million worth of tokens ultimately flow—whether they settle into long-term belief or turn into short-term market sell pressure.