Hyperliquid Defies Massive Dilution Fears as HYPE Smashes New Price Record

Hyperliquid recovered strongly despite rising fears surrounding future HYPE token unlocks.

Short sellers fueled HYPE rally after crowded bearish positions triggered liquidations.

Growing exchange revenue helped Hyperliquid maintain momentum despite massive valuation concerns.

Hyperliquid continued attracting aggressive buying pressure even as concerns surrounding HYPE token unlocks intensified across the crypto market. The token previously dropped nearly 25% during recent volatility. However, buyers quickly regained control and pushed HYPE above the $63 mark for a new all-time high.

Many investors expected HYPE to weaken further because Hyperliquid still has a large amount of future supply scheduled for release. According to data the project’s fully diluted valuation is climbing beyond $60 billion despite a much lower circulating supply. That structure often creates heavy selling pressure once additional tokens enter the market.

Consequently, several traders positioned themselves for a prolonged decline. Many crypto projects experienced similar rallies before eventually collapsing under dilution pressure. Nevertheless, Hyperliquid moved in the opposite direction as market confidence strengthened around the platform’s growing business activity

Short Sellers Fuel Hyperliquid Rally Despite Valuation Concerns

Upcoming unlocks involving nearly 10 million HYPE tied to contributor distributions increased market caution earlier this week. Several traders feared those tokens could trigger aggressive selling once released into circulation. Even so, Hyperliquid maintained strong momentum as buyers continued absorbing available supply.