HYPE Token Unlock Strategy and XRP Release Shape Market Dynamics

• Hyperliquid reduced monthly HYPE token unlocks by 30% to minimize market impact.
• Lighter surpassed Hyperliquid in derivatives volume amid intense DeFi competition.
• Hyperliquid maintains open interest leadership at $7.3B despite volume challenges.
• Ripple's XRP unlock follows historical patterns with most tokens expected to be re-locked.

Hyperliquid (HYPE) and Ripple (XRP) are implementing distinct token release strategies to manage market dynamics. Hyperliquid's revised unlock schedule aims to reduce selling pressure amid competitive challenges. Meanwhile, Ripple's monthly unlock is set to proceed with a history of limited market impact. Both approaches reflect a broader industry shift toward controlled supply releases.

How Is Hyperliquid Reducing Unlock Risks for HYPE Token?

Hyperliquid cut its monthly token unlock from 1.7 million to 1.2 million HYPE. This 30% reduction targets lower selling pressure and market volatility risks. The change follows a December 2025 unstaking event to signal a controlled entry.

Analysts link the adjustment to Hyperliquid's declining market share. The DEX's dominance fell from 75% in May 2025 to 14% by December amid competition. The new 24-month vesting schedule provides predictable liquidity injections starting January 6. This measured approach may support long-term token stability.

Can Hyperliquid Compete Amid Rising Rival Volume?

Lighter overtook Hyperliquid in 30-day perpetuals trading volume. It recorded $198 billion compared to Hyperliquid's $166 billion, driven by token incentives. However, Hyperliquid retains key strengths in open interest. It leads with $7.3 billion in open interest and $820 million in annualized fees according to market analysis.

The competitive landscape includes platforms like Aster and Lighter leveraging Ethereum-native composability. Hyperliquid's integration with major wallets like MetaMask provides user access advantages. Sustaining volume will require innovation beyond incentive programs. Organic growth remains critical for long-term leadership.

What's Next for XRP After Ripple's $1B Unlock?

Ripple's January 2026 unlock will release 1 billion XRP tokens. Historically, the majority are re-locked in escrow to prevent supply shocks. This pattern is expected to continue, limiting effective new liquidity. Regulatory developments could influence future unlock strategies.

Investor demand for XRP is rising despite recent outflows. The Franklin Templeton ETF and potential spot XRP ETFs have attracted $89 million in inflows. Declining exchange reserves signal tightening circulating supply. These factors may support XRP's price trajectory beyond speculative trading.