HYPE Price Soars; Hits $2.6B Market Cap, But Can It Sustain The Momentum?

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Amidst the ongoing bullish market sentiments, the successful HYPE airdrop has gained a lot of traction in the crypto community. Notably, the DeFi protocol Hyperliquid is now one of the largest airdrops in history with its genesis event on Nov. 29, as it distributed 310 million HYPE tokens to its community.

At the launch, the HYPE token was valued at $3.90, placing the total distribution at $1.2 billion, according to data from CoinGecko. HYPE is currently trading at $8.4, up over a massive 60% in the last 24 hours. It has already hit a market cap of $2.84 billion. 

According to the protocol, it has distributed 31% of its $1 billion HYPE tokens on the genesis event, with 38.8% of the remaining supply allocated for future emissions and community rewards, 6% to the Hyper Foundation Treasury, and 0.3% to grants. 

Core contributors will receive 23.8% of the total supply under a 1-year lock period, with vesting schedules ending after 2028. Notably, there are no allocations for private investors, centralized exchanges, or market makers, said Hyperliquid in a statement. 

Crypto Community Lauds HYPE Airdrop

The crypto community is all praises for Hyerliquid’s approach to airdrop. Notably, one of the biggest whales received 508,985 tokens through the HYPE airdrop, making almost $350 million per current price. Someone commented that they had already made $300,000 in profits from the airdrop influence HYPE price rally.

Evan Luthra, a notable crypto entrepreneur, also went on to explain why Hyperliquid could be the BNB of this crypto cycle. He noted that HYPE is the token of 2024 and has the adoption, real utility (gas, staking, and more), and volume to hit $100B+ market cap. He noted that while most tokens launch with big promises, HYPE is delivering before it even starts. 

Users lauded Hype’s approach and shared that HYPE Airdrop just redefined crypto distribution and asked other projects to take note on how to pull off a flawless token generation event. 

“Thousands of users experienced life-changing gains, but the real win is the model. No manipulated markets, no insider advantages just pure, transparent, and impactful value creation,” an X user noted. 

But Will The Momentum Sustain?

However, what is concerning is that most crypto tokens with airdrop end up tumbling down right after the launch due to building selling pressure. The same happened with the X Empire and Hamster Kombat, with their prices struggling till date. However, this is not the case with HYPE, with the price soaring higher since its launch. 

There are more than 333 million HYPE tokens in circulation. But if sellers start selling them, as with most crypto airdrops, the high volatility of the tokens could lead to significant returns. Although it has not happened with the HYPE airdrop yet, but if it does, the HYPE price could face a significant downtrend.