"HYPE Whale's $90M Exit Casts Shadow of Damocles Over DeFi Market"

A major on-chain transaction has triggered market speculation as a suspected crypto whale known as TechnoRevenant withdrew all 2.39 million HYPE tokens from its primary wallet address (0x316f…e678) on September 22, 2025. According to on-chain analytics from Lookonchain, the tokens, originally purchased nine months ago at approximately $12 each, are now valued at $122 million, generating unrealized gains exceeding $90 million TechnoRevenant allegedly withdrew all 2.39 million HYPE tokens from the main wallet^[1]. The withdrawal, executed early in the morning, has drawn attention due to the sheer scale of the position and its potential implications for the HYPE token’s liquidity and price dynamics Real-Time Crypto News Feed | 24/7 Flash News | Phemex^[2].

The transaction highlights the volatility and speculative nature of the decentralized exchange (DEX) token market. HYPE, the native token of Hyperliquid, has surged over 300% in two months, driven by the platform’s dominance in the DEX perpetual market and aggressive buyback mechanisms One address withdrew 2.39 million HYPE, with a paper profit of …^[3]. However, the large-scale withdrawal by TechnoRevenant raises questions about short-term market stability. Analysts note that such movements by whales can amplify price swings, particularly in tokens with relatively low liquidity compared to major cryptocurrencies.

The timing of the withdrawal coincides with broader discussions about HYPE’s market fundamentals. Arthur Hayes, co-founder of BitMEX, recently cited "unlocking pressure" as a key reason for selling HYPE tokens, warning that large-scale unlocks could act as a "Sword of Damocles" for holders AiCoin Real-time News^[4]. This sentiment aligns with the current context, as TechnoRevenant’s position represents a significant portion of the token’s circulating supply. On-chain data suggests the whale has been accumulating HYPE since early 2025, leveraging Hyperliquid’s fee revenue model and tokenomics to build a high-conviction position One address withdrew 2.39 million HYPE, with a paper profit of …^[3].

Market participants are now monitoring whether the withdrawal will trigger a cascade of selling or stabilize as a long-term holding. The wallet’s unrealized gains—calculated as the difference between the current price and the original $12 cost basis—represent a paper profit that could influence TechnoRevenant’s next steps. While some traders speculate the address may liquidate a portion of the tokens to lock in gains, others argue the position’s size and the token’s strong fundamentals may deter immediate dumping.

HYPE’s recent performance underscores its role as a key player in the DeFi ecosystem. Hyperliquid’s token buyback program, which allocates 97% of protocol fees to repurchase HYPE, has created upward price pressure despite broader market downturns . The platform’s total value locked (TVL) now exceeds $1.75 billion, cementing its position as a top-8 blockchain by TVL. However, critics caution that the token’s valuation—estimated at $38–45 billion—may be inflated by speculative demand and limited validator decentralization, with only 21 nodes currently securing the network .