Over the past week, HYPE whales have shifted approximately $400 million worth of tokens in and out of staking contracts, sparking intense speculation about their next move. While some observers warn of an impending sell-off, others suggest these large on-chain maneuvers might be linked to ETF preparations.
Massive Staking and Unstaking Activity
Blockchain analytics reveal a whale staked nearly 3 million HYPE tokens, valued at $172 million, sourced from 19 wallets thought to belong to a single holder. This stake represents coins accumulated almost nine months ago at an average price of $44 each, now sitting on a paper gain of about $44.5 million.
Simultaneously, another whale deposited over half a million HYPE tokens, worth close to $33 million, after acquiring them from the institutional trading firm FalconX, further swelling the staking pool.
On the flip side, a substantial unstaking event occurred as a single entity withdrew nearly 2.92 million HYPE tokens, equivalent to $170 million. These tokens had been locked for eight months before being freed, leaving the wallets empty of staked HYPE. Additional unstaking totaling about 1.49 million tokens, worth $88 million, was traced to wallets that had originally obtained the coins through Bybit exchanges.
Sell-Off Fears vs ETF Seeding Theories
The magnitude of unstaking has fueled fears of a large-scale sell-off, especially considering past episodes when unstaking announcements caused a 15% price dip. Yet, some in the Hyperliquid community propose the moves are less about liquidations and more about preparing for ETF operations. Since tokens locked in staking contracts are illiquid and unsuitable for ETF custody, custodians might be unstaking in advance to facilitate fund setup.
This theory gained traction after a similar event in April when $88 million worth of HYPE was unstaked on the same day Grayscale updated its custody arrangements, shifting to Anchorage. The timing suggests strategic positioning rather than panic selling.
Crypto analyst Jussy highlighted that wallets linked to major investment firms like Multicoin, Paradigm, and Selini Capital are involved, with Multicoin clarifying their moves as wallet rotations instead of sales. Paradigm and Selini have remained silent.
The coming days will be critical to watch if these whales convert unstaked tokens to the market or use them for ETF seeding, a factor that could influence HYPE’s price and liquidity significantly.
This article is for informational purposes and does not constitute financial advice.
