HYPE Token Holders Move $40 Million Ahead of Hyperliquid Project Launch

HYPE token holders have been actively moving their funds in response to the upcoming launch of a new project within the Hyperliquid ecosystem, scheduled for July 15. Following the announcement, approximately 1 million HYPE tokens, valued at around $40 million, were placed in the unstaking queue. The majority of these tokens, over 847,000 HYPE, were moved by just three large wallets from existing validators. This rapid and significant withdrawal suggests that major holders, often referred to as "whales," are positioning themselves in anticipation of the new features and opportunities that the upcoming project will bring.

Kinetiq, the entity behind the new project, issued a statement clarifying that the early notice was intended to provide participants across different time zones with adequate preparation time, considering the protocol’s seven-day unstaking delay. However, the scale and speed of the withdrawals indicate a strategic move by large holders to capitalize on the impending changes within the Hyperliquid ecosystem.

The timing of these movements coincides with Hyperliquid's rapid growth and increasing activity on its Layer 1 network, HyperEVM. The platform has seen record activity, with Hyperliquid dominating the decentralized futures landscape. In the past 24 hours alone, the protocol recorded $5 billion in trading volume, and over $200 billion in the past month—nearly ten times the volume of its nearest competitor. This surge in activity underscores the platform's growing influence and attractiveness to traders and institutions alike.

The new project launch closely follows Hyperliquid’s CoreWriter Contracts upgrade, which allows applications on HyperEVM to integrate natively with Hypercore, the platform’s DEX and staking layer. The upcoming staking protocol is expected to offer liquid staking functionality, which could explain the sudden exit of large HYPE holders from standard staking pools as they prepare to redeploy their tokens into Kinetiq’s offering. This strategic shift is part of a broader trend where holders are liquidating their positions in anticipation of the new project, as indicated by the increased trading volumes on the Hyperliquid platform.

The Hyperliquid ecosystem has been gaining significant traction, with its Layer-1 decentralized exchange (DEX) for perpetual futures becoming a prominent player in the decentralized finance (DeFi) space. The platform offers sub-second execution and fully on-chain order books, combining the benefits of centralized exchanges with the security of decentralized infrastructure. This has attracted both traders and institutions, leading to a surge in demand for the HYPE token.

In June, Hyperliquid surpassed $500 million in total value locked (TVL) and became the fifth-largest token by futures open interest at $2.06 billion, overtaking Dogecoin. The token has seen a sharp demand surge, climbing over 300% since April, driven by increased exchange usage and rising interest from large holders and investors. The platform processed over $1.57 trillion in annual perpetual volume, generating over $310 million in revenue and $56 million in June alone.

Recent technological advancements, such as the launch of CoreWriter on July 5, have further accelerated Hyperliquid’s expansion. CoreWriter is a novel smart contract that enables HyperEVM-based applications to integrate directly with HyperCore’s high-speed trading engine, representing a significant leap forward for dApp development on the platform. Additionally, the ecosystem has seen significant integrations, including Maple Finance’s acceptance of HYPE as collateral for institutional DeFi lending and Okto Wallet’s release of the first Hyperliquid-native mobile application.

The community-built HyBridge has also enabled frictionless asset transfers from seven chains, including Ethereum, Solana, and Arbitrum, into Hyperliquid. This has further bolstered liquidity and trading activity on the platform, with bridge deposits nearing $4 billion. The influx of funds has supported the platform’s growth, making it a top-tier DEX for perpetual futures.

Despite the selloff, Hyperliquid retains its dominance as a top-tier perpetuals DEX, processing $1.57 trillion in annual volume. The platform’s strong fundamentals, accelerating adoption, and ecosystem-wide upgrades position it for continued growth across DeFi, NFT derivatives, and gaming finance. As the new project prepares to launch, HYPE holders are strategically shifting their funds to capitalize on the upcoming opportunities within the Hyperliquid ecosystem.