Hyperliquid (HYPE) faces a significant challenge as 2.66% of the supply unlocks in November.

After establishing its leading position in the field of on-chain perpetual DEX (, Hyperliquid ) HYPE ( is preparing to face one of its biggest challenges since its launch.

This November, Hyperliquid will unlock )unlock( a large amount of HYPE tokens, raising a critical question: Will this event boost liquidity and increase adoption, or will it lead to a strong price correction?

Supply-demand pressure and short-term price scenarios

According to data from Tokenomist, millions of HYPE tokens will be unlocked in November, accounting for about 2.66% of the total circulating supply. The release of a large amount of tokens all at once often leads to the risk of value dilution and increased selling pressure.

![Hyperliquid )HYPE( faces a major challenge])https://img-cdn.gateio.im/webp-social/moments-d008d3cd92a4f3585cba833231da1186.webp(HYPE will be unlocked in November | Source: TokenomistTechnically, some analysts believe HYPE may be forming a head and shoulders pattern on the daily chart. If this pattern is confirmed, the price of HYPE could adjust down to the )range in the short term.

![Hyperliquid $20 HYPE( faces a major challenge as 2.66% of the supply unlocks in November])https://img-cdn.gateio.im/webp-social/moments-044f794b1563aa6604ce3339f0a6360d.webp(Technical analysis HYPE | Source: AliAdditionally, some traders have observed controlled selling activity from large holders, as evidenced by the trend of “gradually selling effectively” based on TWAP. One trader commented:

“It's unclear what is happening, I will continue to observe for more clear signals.”

On the contrary, this volatility also opens up opportunities for experienced investors. Route2FI believes that:

“If HYPE closes a 1-minute candle around the mark ) in November, this could become a temporary 'yield farming' opportunity.”

This strategy takes advantage of short-term price fluctuations, but is only suitable for professional traders due to the high risks during the unlocking phase.

Strong on-chain revenue and long-term prospects

Although short-term supply pressure is unavoidable, the core strength of Hyperliquid lies in its ability to generate outstanding on-chain revenue. According to data from Artemis, in the last 24 hours, Hyperliquid has generated over 2.2 million USD in transaction fees, leading the entire blockchain ecosystem.

![Hyperliquid $40 HYPE( faces a major challenge as 2.66% of the supply unlocks in November ])https://img-cdn.gateio.im/webp-social/moments-a9cf678f6414fc94fa214c2bd4053a11.webp(Hyperliquid leading in on-chain fee revenue )24 hours( | Source: XEarly month reports also noted that Hyperliquid accounts for up to 33% of total blockchain revenue, becoming the “gold mine of transaction fees” for DeFi. If the project uses a portion of this revenue for buyback or token burn programs, the selling pressure from the unlocking phase can be mitigated, contributing to price stabilization.

Conclusion

The upcoming HYPE token unlock will be an important test for the project and the investor community. In the short term, dilution risk and cautious sentiment may put pressure on the price. However, Hyperliquid's abundant on-chain revenue can definitely help the project overcome the supply shock if effectively leveraged through buybacks, staking, or increasing liquidity.

In the long run, the real value of HYPE will depend on the team's ability to convert revenue into tangible benefits for holders, rather than just relying on the short-term unlocking effect. The unlock event in November is not the end, but it could be a revaluation milestone for one of the most promising DeFi projects in 2025, if Hyperliquid can prove that the on-chain DEX model is capable of generating sustainable profits.

Mr. Teacher