HYPE has increased the price; Reaches $2.6B Market Cap, But Can It Sustain Its Momentum?
Amidst the ongoing bullish market sentiment, the successful HYPE airdrop gained a lot of attention in the crypto community. Notably, Diffie Protocol HyperLiquid distributed 310 million HYPE tokens to the community on November 29th during the Genesis event, one of the largest airdrops in history.
At the introduction, the HYPE token was valued at $3.90, which put the total circulation at $1.2 billion, according to data from CoinGecko. HYPE is currently trading at $8.4, up more than 60% in the last 24 hours. It reached a market cap of $2.84 billion.
According to the protocol, 31% of the $1 billion HYPE tokens were distributed at the Genesis event, 38.8% of the remaining supply was allocated to future releases and community rewards, 6% to the Hyper Foundation treasury and 0.3% to donations.
Major contributors will receive 23.8% of the total supply during a 1-year lock-up period, with a visa schedule expiring after 2028. Specifically, there is no allocation to private investors, centralized exchanges or market makers, Hyperliquid said in a statement.
The crypto community is all thanks to HyrLiquid's takeoff approach. Notably, one of the biggest whales received 508,985 tokens in the HYPE airdrop, which is worth $350 million at current prices. Someone commented that they made a $300,000 profit from the airdrop HYPE price rally.
Ivan Lutra, a famous crypto entrepreneur, also explained why HyperLiquid could be the BNB of this crypto cycle. HYPE says it's a 2024 signal and has adoption, real utility (gas, staking and more) and scale to hit a 100B+ market cap. He pointed out that while most tokens launch with big promises, the HYPE is delivering before it's even launched.
Users praised HYPE's approach and said that HYPE Airdrop redefined crypto distribution and asked other projects to take notes on how to pull off a seamless token generation event.
“Thousands of users have experienced life-changing benefits, but the real winner is the model. There are no manipulated markets, no insider benefits, just pure, transparent and impactful value creation,” said User X.
But will the momentum continue?
However, the concern is that most of the crypto tokens will go down after increasing the selling pressure after they start getting crowded with airdrops. The same thing happened with X Empire and Hamster Kombat, whose value is still struggling to this day. However, this is not the case as prices have been increasing since the launch of the HYPE.
There are over 333 million HYPE tokens in circulation. But if sellers start selling them, like most crypto airdrops, the high volatility of tokens can lead to huge profits. Although it has not yet happened on the HYPE airdrop, if it does happen, the price of HYPE could experience a significant downward trend.
