Multicoin Capital has divested another 10% of its holdings in the HYPE token, according to data from blockchain analytics firm Arkham Intelligence. Despite this sale, HYPE remains the investment firm’s largest position, currently valued at approximately $90.5 million.
Multicoin Capital had amassed these tokens between February and March of this year and had maintained the position for over six months. At its peak, the firm held 4 million HYPE tokens, but now possesses just over a quarter of that amount, Arkham reported. Earlier this week, Multicoin transferred a significant portion of its HYPE holdings to Coinbase Prime. On-chain data revealed three separate transactions totaling 261,555 HYPE, with an estimated value of $21.7 million. These transfers, comprising batches of 63,235, 101,144, and 97,176 units, attracted attention as they occurred while the cryptocurrency was trading near its recent peak prices.
In June, Multicoin had projected that HYPE could reach $319. This target was derived from valuing an anticipated $8 billion in 2028 earnings at 20 times, leading to a $160 billion valuation based on an adjusted supply of approximately 502 million HYPE tokens. The firm’s base case scenario assumes annual growth of 35% in crypto derivatives volume, with decentralized exchanges (DEXs) capturing 32% of that market, Hyperliquid securing a 30% share, and USDC balances increasing in line with volume.
Conversely, Multicoin’s bear case scenario places HYPE at $109, while its bull case forecasts a price of $689, based on projected cash flow of $17.3 billion. In the same report, Multicoin also drew parallels between Hyperliquid’s growth trajectory and the rapid ascent of Binance in 2017.
HYPE has emerged as one of the year’s top-performing assets, experiencing a remarkable surge. The token has gained 50% in the past month alone and recently achieved an all-time high of $86.71. While it has since experienced a minor correction, it continues to trade above the $82 mark.
Regulatory Developments
Hyperliquid also featured in discussions during a meeting between former President Donald Trump and major cryptocurrency executives at the White House last month. Trump indicated that CFTC Chair Michael Selig is working to bring the perpetuals-focused trading platform into the United States, with the objective of ensuring Hyperliquid operates in a “fully compliant and legal fashion.” The meeting also addressed topics such as Bitcoin, the Digital Asset Market Clarity Act, and broader efforts to expand crypto activity within the U.S.
Market Sentiment and Trading Strategies
While the overall market outlook for HYPE remains bullish, one trader has positioned for a potential decline. The pseudonymous market observer known as “swarmik” expressed a bearish sentiment, suggesting the token could drop 17.2% based on analysis of a four-hour chart, citing signs of weakness in the market structure. The trader believes significant selling liquidity could drive the price lower.
However, a potential correction could also present an opportunity for a short position, with three downside targets identified at $76.77, $72.68, and $68.49. This trade would carry a risk-reward ratio of 1.5R, according to the analysis.
