The HYPE token of Hyperliquid is facing a critical moment: the governance vote taking place from December 17 to 24 is about to conclude, with the proposal aimed at permanently destroying 37 million HYPE tokens held in the Assistance Fund, accounting for about 13% of the circulating supply, worth up to $1 billion. This will officially remove these inaccessible tokens, further strengthen the deflationary mechanism, and eliminate future uncertainties.[3][4]
At the same time, the HYPE price is under pressure, currently falling back to around $24.35, below the $26 high, and retesting key Fibonacci resistance levels and the neckline of the head and shoulders pattern. If the $314 million token unlocking supply shock on November 29 is absorbed by the market, it could turn into a buying opportunity; otherwise, it may further dip to $25 or even the mid $20 range.[1][5][8]
In 2025, HYPE surged from $3.20 to a high of $42.03, benefiting from on-chain liquidity innovations, the mixed CLOB-pool model (which occupies 70% of the perpetual futures market share), and the launch of HyperEVM, but the TVL declined by 45%, and increased competition (such as Lighter and Aster's zero-fee strategies) led to a price correction of 58% from the high.[2]
Additionally, Hyperliquid confirmed that a former employee's wallet is leading a large-scale HYPE shorting activity, and the company reiterated its zero-tolerance policy towards insider trading, denying team involvement.[7][9]
Analysts have differing views: there may be short-term buying opportunities due to current volatility, but attention is needed on HIP-3 governance, regulatory clarity, and liquidity fragmentation challenges; in the long term, if technical leadership is maintained, price potential is promising.[2]
$HYPE
$LUNA2
