Why Hyperliquid faces $91M Multicoin supply risk despite HYPE’s ETF boost

After holding a Hyperliquid [HYPE] position for a year, a whale has secured nearly $140 million in profit. That trade began a year ago, when the holder accumulated roughly 2.89 million HYPE when the token was trading near $17.35.

Rather than cashing in profits quickly, the whale staked the tokens before later selling at a higher profit. The whale recently completed its exit, moving 969,595 HYPE worth approximately $79.18 million to Coinbase Prime and FalconX exchanges for trade.

The sale cleared the whale’s remaining position after weeks of distribution, ending a highly profitable trade. More importantly for HYPE, that removes a major source of potential selling pressure. As a result, that leaves the market demand to absorb the final wave of distributed tokens.

Multicoin adds to HYPE’s sell-side pressure

However, this whale exit seems less isolated, given that Multicoin Capital has been steadily decreasing their HYPE holdings. This is after they sold 75% of their peak position.

In total, Multicoin had acquired approximately 4 million HYPE in February and March. However, they have decreased that to just under 1 million over time.

The most recent four transactions deposited 404K HYPE worth roughly $34.2 million at Coinbase Prime. These deposits are important, as once an exchange becomes able to sell those deposit tokens, it will create additional supply on top of the aforementioned whale’s exit.