Hyperliquid aims to rebuild the position of its HYPE native token, which sank under $40. The most recent support comes from Paradigm’s staking deposit, revealing the fund’s significant reserves.
Paradigm, one of the biggest holders of HYPE, recently deposited a large percentage of its holdings for staking. HYPE relies on a dedication to holding, to become the basis of the Hyperliquid staking economy. As a result of the latest HYPE move, the SWPE metric of demand against the free supply moved to a new low, suggesting HYPE has solid support.
On-chain data shows Paradigm was indeed the largest single holder of HYPE. Until recently, the funding of Hyperliquid was not transparent, as the perp DEX revealed a single undisclosed round of financing.
Unlike other VC-backed projects, there was limited awareness of who supported the platform, and what their intentions were about the token. However, HYPE continued to grow after its airdrop, and did not fall prey to immediate selling.
Paradigm has revealed itself as possibly the project’s biggest backer, with around 1.91% of the supply owned.
Paradigm shifts HYPE stake to Sonnet’s treasury
On-chain data shows Paradigm locked $581M in staking, delegating some of the tokens to secure the network. Paradigm retained 1.4M HYPE in its spot balance, while the rest were moved mostly to the Anchorage validator.
The token transfers are part of the Sonnet Biotherapeutics merger and the creation of a HYPE treasury company. Paradigm has also contributed, and the latest move of HYPE may be linked to staking the treasury for passive income. Despite the initial intention, HYPE can now see even lower selling pressure with the newly locked tokens.
Following the news, Sonnet shares traded around $4.60, around the middle of their range for the past six months. While DAT companies lost their initial appeal, Sonnet remains supported by the success of Hyperliquid as the leading perpetual DEX and a growing ecosystem for side projects. HYPE remains instrumental in securing the HyperEVM network, making Sonnet a supported by proxy.
HYPE aims to recover above $40
HYPE traded just below $40, attempting to bounce from its recent lows. The token recovered to $39.34, as Hyperliquid is still rebuilding its activity and open interest following the October 11 deleveraging event.
HYPE open interest remains relatively weaker at $1.36B, with over 70% of traders going long. On Hyperliquid itself, around 67% of whales are going long on the token. Despite this, the biggest position on HYPE is a short with a notional value of over $61M.
In the past month, Hyperliquid has re-injected $80M to buy back HYPE. The lower price translates into more buybacks, allowing the token to find a bottom relatively quickly. However, the buybacks are not happening near the top, and have not driven new all-time highs.
Despite this, HYPE expects an eventual breakout to $100, based on demand within the ecosystem. HYPE may be needed to create third-party perpetual DEX with a different set of trading conditions and fees.
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