Hyperliquid (HYPE) jumps 3.5% following announcement of 1.2M token distribution
Hyperliquid’s HYPE Rallies on Token Distribution News
Hyperliquid’s native token, HYPE, posted a strong move at the end of December, rising more than 3% on December 29 as markets reacted to news of an upcoming team token distribution. The token briefly climbed to $26.24, giving Hyperliquid a market capitalization of approximately $8.89 billion.
According to CoinMarketCap, HYPE is currently trading near $26, with the rally coinciding with a broader market upswing led by Bitcoin’s push toward $90,000 and Hyperliquid’s standout operational performance throughout 2025. Despite the price increase, sentiment remains mixed, with the Community Sentiment Index showing 67% bullish and 33% bearish positioning.
HYPE Gains Ahead of Team Token Distribution
The rally follows a December 28 announcement from Hyperliquid co-founder Iliensinc, shared via Discord, confirming that 1.2 million unstaked HYPE tokens—worth roughly $31 million at current prices—have been prepared for distribution to core team members.
The first distribution is scheduled for January 6, 2026, marking the start of a predefined vesting process. The allocation is part of Hyperliquid’s 24-month linear vesting schedule, covering 23.8% of the total 1 billion token supply reserved for the team. Subsequent distributions will occur predictably on the 6th day of each month, a move designed to improve transparency and reduce uncertainty around token unlocks.
The distribution aligns with Hyperliquid’s bootstrapped, VC-free model, ensuring that all token releases are internal and tied to long-term project incentives. Community reactions have been mixed: while some praised the clear communication, others are closely monitoring potential short-term volatility.
To offset new supply, the platform continues its token buyback program and recently completed a burn of 37 million HYPE, helping balance tokens entering circulation. Additional releases from reserves have also been disclosed.
Hyperliquid Posts $844 Million in 2025 Revenue
Hyperliquid’s fundamentals remain strong. The decentralized perpetual futures exchange, built on its own dedicated blockchain, generated approximately $844 million in revenue in 2025, according to data from ASXN Data.
Trading fees from perpetual derivatives were the primary revenue driver, placing Hyperliquid among the most profitable protocols in the crypto sector. The platform recorded $2.95 trillion in cumulative trading volume for the year—averaging $8.34 billion per day. Perpetual contracts alone generated $848 million in fees, translating into roughly $808 million in net revenue.
Market observers note that HYPE has shown notable resilience amid broader market volatility. While it remains unclear whether this stability is directly tied to expectations around LIT’s upcoming launch, price action over recent weeks suggests a potential short-term support level may be forming.
Commenting on the competitive landscape, crypto commentator Tulip King wrote on X:
“If lighter volume is sustained after TGE then it validates the existence of alternative perps DEXes, but contingent on a race to zero fees, imo the whole sector would need to reprice down. If lighter volume returns to Hyperliquid, then this is a phenomenal price to buy HYPE at.”