Whale Activity in Centralized Liquidity Platforms and Its Impact on HYPE's Value Proposition

The HYPE token, native to Hyperliquid, has emerged as a focal point in the decentralized finance (DeFi) landscape, driven by its unique value proposition and liquidity-driven tokenomics. As Hyperliquid captures over 75% of the decentralized perpetuals market share, its token's valuation is increasingly influenced by whale activity on centralized liquidity platforms. This article examines how whale transactions-both on-chain and off-chain-shape HYPE's liquidity metrics, network adoption, and long-term economic model, while balancing the risks and opportunities inherent in such dynamics.

Liquidity-Driven Valuation: The Role of Whale Accumulation

Hyperliquid's tokenomics are anchored in a deflationary model, with 97% of trading fees allocated to HYPE buybacks, creating a direct link between liquidity generation and token value according to a valuation model. Whale activity amplifies this dynamic. For instance, a major Hyperliquid whale, identified by the wallet address 0x72b23, accumulated 490,000 HYPE tokens ($12.1 million) over 14 days in late 2025, signaling long-term confidence in the token.

This whale also transferred 323,000 HYPE to the platform, likely for staking or DeFi utilization, further reinforcing liquidity. Such actions reduce circulating supply and align with Hyperliquid's buyback strategy, creating upward pressure on HYPE's valuation.

Institutional confidence is another driver. A separate whale deposited $25.56 million in USDC into Hyperliquid, using $15.02 million to purchase HYPE tokens and the remainder into a HyperLiquid Vault. These large-scale transactions not only inject liquidity but also validate Hyperliquid's infrastructure as a credible alternative to centralized exchanges (CEXs). By December 2025, Hyperliquid's daily network fees surpassed Ethereum and TRON, reaching $2.9 million per day, while transaction volume hit $10 billion. This liquidity surge is partly attributable to whale-driven demand, which has helped Hyperliquid achieve a 73% market share in decentralized perpetual trading volume post-HIP-3 upgrade according to on-chain analysis.

Network Adoption: Whale Activity as a Catalyst

Whale transactions also accelerate network adoption. Hyperliquid's TVL grew to $3.5 billion by late 2025, with open interest surging to $15 billion-surpassing CEXs in market share. The platform's user base expanded by 78% in the first half of 2025, reaching over 518,000 addresses, while average weekly capital inflows hit $58 million. These metrics reflect a broader trend: whale activity acts as a multiplier for network effects. For example, the HyperEVM ecosystem achieved a TVL of $2.08 billion by June 2025, driven by institutional participation and whale-driven liquidity.

However, whale concentration introduces risks. Approximately 60% of HYPE's total supply is controlled by whale addresses, raising concerns about market manipulation and liquidity imbalances. A notable bearish event in late 2025 saw $70 million in long positions liquidated within 48 hours, driven by leveraged whale positions. Such volatility underscores the dual-edged nature of whale activity: while it drives liquidity and adoption, it also amplifies downside risks during market stress.

Balancing Risks and Rewards

Despite these challenges, Hyperliquid's economic model remains resilient. Its fixed supply of 1 billion tokens and aggressive buybacks create a strong tailwind for HYPE's valuation. Institutional commitments, such as Hyperliquid Strategies staking 12 million HYPE tokens ($372 million), further reinforce confidence. Analysts project a price target of $65–$70 for HYPE, citing growing institutional demand and the platform's deflationary mechanics.

Yet, token unlocks and whale selling pressure remain critical risks. In Q4 2025, HYPE's price dropped over 60% from its all-time high to $24, coinciding with increased whale activity and supply-side risks. This highlights the need for investors to monitor on-chain metrics, such as exchange outflows and wallet concentration, to gauge liquidity health.

Conclusion: A Bullish Outlook with Caution

Whale activity in centralized liquidity platforms has undeniably bolstered HYPE's value proposition. By driving liquidity, reducing circulating supply, and accelerating network adoption, whales have positioned Hyperliquid as a cornerstone of DeFi infrastructure. However, the concentration of token ownership and volatility risks necessitate a cautious approach. For investors, the key lies in balancing the platform's robust tokenomics with strategic risk management, ensuring that whale-driven momentum translates into sustainable growth rather than speculative bubbles.