Two of the largest cryptocurrency venture capital firms, Paradigm and Multicoin Capital, have unstaked approximately $291 million worth of Hyperliquid's HYPE token within days of each other. The back-to-back moves by such prominent investors have triggered concerns over a potential wave of selling, causing the price of HYPE to fall below the $60 threshold.

Hyperliquid operates as a Layer 1 blockchain optimized for perpetual futures trading, enabling users to trade leveraged derivatives on-chain without relying on centralized intermediaries. Its native token, HYPE, functions as both a staking asset that helps secure the network and a key instrument within the platform's broader ecosystem.

According to on-chain tracker Onchain Lens, Paradigm initiated the larger transaction on July 24, unstaking 2.92 million HYPE tokens—valued at roughly $170 million—after holding them in a staking contract for about eight months.

Onchain Lens reported on X: "An entity unstaked $170M worth of $HYPE. Two wallets belonging to the same entity unstaked 2.92M $HYPE (~$170.1M) after being staked for 8 months. Both wallets now hold 0 $HYPE in the staking contract. Addresses: 0xcef1c075dbfe6b2d774c74a8b94e8350e9b42c25…" https://x.com/OnchainLens/status/2079620557419790579

Just two days prior, Multicoin Capital unstaked 1.96 million HYPE tokens valued at approximately $120 million. The consecutive unstaking by these highly influential backers stands out, particularly as HYPE recently broke into the top 10 cryptocurrencies by market capitalization.

Market Impact and Trading Volume Concerns

As noted by BeInCrypto, the combined $291 million worth of unstaked tokens represents approximately 85% of HYPE's daily trading volume. This significant proportion is worrisome to traders, as while unstaking does not guarantee an immediate sale, it does free the tokens from the lockup that previously kept them out of active trading. In cryptocurrency markets, large-scale token movements by early institutional backers—who typically acquired their positions well below current market prices—carry outsized psychological weight, as they can signal shifting conviction even when no immediate sale materializes.

This concern has already been reflected in market pricing. Data from CoinMarketCap indicates that HYPE has been trading in the range of $57 to $59, marking a decline of nearly 25% from its all-time high of $76.70 reached in June.

Under Hyperliquid's protocol, unstaked tokens are subject to a mandatory seven-day waiting period during which they cannot be transferred. Consequently, the HYPE tokens unstaked earlier in July will only become fully liquid by the end of the month. Market participants are expected to closely monitor trading activity once these tokens are available for movement.

Multicoin Capital Denies Sell-Off

Amid rumors that Multicoin Capital might be preparing to liquidate its position, Tushar Jain, co-founder of the investment firm, promptly addressed the situation by stating, “We did not unstake to sell.” https://x.com/tushar_jain/status/2079984643584221596

Jain emphasized that it is common practice for institutional investors to transfer cryptocurrencies between wallets. Because blockchain transactions are inherently transparent, privacy is often managed through strategic wallet rotations. His remarks align with Multicoin's broader investment philosophy. As previously reported, the firm projects that HYPE could reach approximately $319 by 2028, contending that Hyperliquid is capable of evolving from a decentralized perpetuals exchange into a comprehensive financial platform. This long-term perspective suggests the unstaking is more indicative of portfolio management rather than a preparation for an exit.

Several blockchain analysts have echoed this perspective. An investigation by Markets Alpha into four associated wallets revealed that the tokens had simply been moved into safekeeping rather than being transacted on the open market. Lookonchain also reported that a portion of Multicoin's tokens was transferred via Coinbase Prime. Furthermore, approximately 1 million HYPE was sent to Grayscale to help initiate its Hyperliquid ETF (HYPG), which successfully began trading on the Nasdaq in June. The ETF listing represented a notable step in bridging decentralized finance with regulated traditional markets, giving mainstream investors exposure to a DeFi-native asset through a conventional brokerage vehicle.

Paradigm Remains Silent

Paradigm, identified by blockchain researcher Louis.hl as the largest HYPE holder with approximately 19 million tokens, has not publicly commented on the recent unstaking event. https://x.com/louisdives/status/2080464486297940138

Louis.hl also observed that Paradigm had previously unstaked 2.14 million HYPE tokens back in April. The lack of an official statement from the firm has contributed to the market's ongoing uncertainty.

Fundamentals and Future Outlook

Despite the market jitters, not everyone views the recent unstaking operations as a bearish signal. Market analyst Elon Trades noted that Hyperliquid's core metrics remain strong, as the platform continues to gain ground in the decentralized derivatives market and generate consistent revenue. He also expressed agreement with Jain's assertion that Multicoin had no intentions of selling. https://x.com/ElonTrades/status/2080109769537323060

These views are supported by robust business metrics. In June, Multicoin Capital reported that Hyperliquid generated nearly $873 million in revenue from approximately $2.9 trillion in trading volume in 2025. Additionally, the platform commanded over 59% of the total open interest across decentralized finance (DeFi) perpetual futures markets.

However, strong business results do not entirely eliminate near-term market uncertainty. Investors are currently looking to see what Paradigm, Multicoin, and other major holders will do with their tokens once they become fully liquid. Possible options include holding, restaking, or selling them to another party. At the moment, this ambiguity is contributing to the cautious market sentiment.

For short-term sentiment to improve, HYPE will need to reclaim and stabilize above the $60 level. Adding to the supply-side dynamics, another token unlock for core team members is scheduled for August 6. This event will introduce further potential supply into a market that is still processing the implications of the recent unstaking activities.