Key Takeaways
- BitMEX co-founder Arthur Hayes liquidated 247,334 HYPE tokens valued at approximately $18 million despite earlier forecasting a $150 price point
- The token retreated from all-time highs around $75 to approximately $67 after Hayes announced his exit
- Hayes pointed to escalating energy costs, pending AI company IPOs, and macro timing concerns as motivations for selling
- Analyst Markus Thielen from 10xResearch cautioned that HYPE’s valuation had become stretched at roughly 25x anticipated fee revenue
- The token maintains a 166% gain year-to-date while Hyperliquid captured 6.63% of worldwide perpetual futures volume in May
The price of Hyperliquid’s native HYPE token experienced a significant decline following BitMEX co-founder Arthur Hayes’ revelation that he liquidated his complete holdings, mere days after publicly projecting the asset could reach $150.
According to blockchain analytics platform Lookonchain, Hayes offloaded 247,334 HYPE tokens in a transaction worth roughly $18.02 million. The selloff contributed to HYPE’s descent from peak levels near $75 down to the $67 range.
In a post shared on X, Hayes outlined three primary factors behind his decision: escalating energy prices connected to Iranian geopolitical tensions, the anticipated launch of three significant AI company IPOs before the third quarter, and apprehension that markets might reach their zenith sometime between the present and September. He indicated a comprehensive analysis would follow in a forthcoming piece titled “Reality Test.”
“Time to take profit,” Hayes declared, later adding in a response: “I’ll be back.”
The announcement triggered swift criticism within the crypto community. Arthur Cheong, who founded DeFiance Capital, characterized the move as “the epitome of a guy that over-trades his position.” Meanwhile, crypto analyst TraderSZ, commanding an audience exceeding 683,000 followers, highlighted the contradiction between Hayes’ recent bullish commentary suggesting HYPE might become one of the year’s top performers and his sudden exit.
Valuation Concerns Emerge
Prior to Hayes’ exit, 10xResearch analyst Markus Thielen had raised red flags about the token’s rapid appreciation. While acknowledging Hyperliquid as “one of the most impressive businesses in crypto” with approximately 77% gross profit margins and robust onchain trading architecture, Thielen expressed valuation concerns.
At the $75 price level, HYPE commanded a valuation around 25 times forecasted fee revenue—approaching its highest multiple in twelve months. Thielen further observed that protocol revenue hasn’t surpassed previous peaks, while a substantial token unlock scheduled for June could introduce additional supply pressure.
Despite near-term headwinds, HYPE maintains a robust 166% appreciation year-to-date.
Platform Metrics Reach New Milestones
Hyperliquid’s underlying business metrics continued strengthening even as token prices corrected. The platform achieved a milestone in May, capturing 6.63% of total global centralized exchange perpetual futures trading volume. When measured against Binance specifically, Hyperliquid’s volume share climbed to 14.4%, marking another record.
Institutional adoption signals are accelerating as well. Grayscale’s forthcoming Hyperliquid ETF, ticker symbol HYPG, is preparing to debut with a 0.29% management fee. Meanwhile, existing exchange-traded products THYP and BHYP have collectively attracted $141 million in net inflows. Bitwise CEO Hunter Horsley disclosed that more than 7.7 million HYPE tokens have been staked with Bitwise validators.
From a technical analysis perspective, HYPE’s crucial support zone is positioned between $59 and $60. Bulls would need to reclaim the $83–$95 resistance band to potentially ignite a continuation move toward the $110–$130 target range.
Whale positioning metrics revealed the spread between long and short positions had compressed to merely $0.01 billion, indicating major holders may be adjusting their allocations.
