HYPE Token Falls 27% as ASTER Gains Market Dominance
The native token HYPE has seen a significant drop, decreasing by 6% on September 25 and marking a 27% loss over the past week. Prominent trader James Wynn suggests that HYPE will continue to decline.
- HYPE's decline began following the launch of rival decentralized exchange Aster on September 17. Aster gained market attention with support from Binance founder Changpeng Zhao.
- On a recent trading day, Aster processed $20.8 billion in volume compared to HYPE's $9.7 billion, generating $9.2 million in daily revenue versus HYPE's $2.7 million.
- Aster's total value locked surged from under $400 million to over $2 billion in a week.
- High-profile investors like Jeffrey “Machi Big Brother” Huang have sold large amounts of HYPE at a loss due to the price drop.
Token Unlock Concerns
- An upcoming $11.9 billion HYPE token unlock on November 29 raises concerns, as 237.8 million tokens will be released over 24 months.
- Only about 17% of the monthly issuance might be absorbed by buyback programs, potentially adding $410 million in new tokens to the market monthly.
- BitMEX co-founder Arthur Hayes exited his HYPE holdings earlier in September, citing these unlock concerns.
Currently, HYPE is trading near $42.70, down nearly 29% from its peak of $59.39 last week.