Multicoin Capital has sold another 10% of its HYPE holdings, according to blockchain analytics platform Arkham Intelligence. Still, HYPE remains its largest holding, currently worth around $90.5 million.
The investment firm had accumulated the tokens between February and March this year and has held the position for more than six months.
Slashing HYPE
Arkham stated that Multicoin held 4 million HYPE at its peak and now owns just over 25% of that amount. Earlier this week, the firm moved a large amount of the token to Coinbase Prime. On-chain data showed three separate transfers totaling 261,555 HYPE, worth about $21.7 million. The batches contained 63,235, 101,144, and 97,176 units. The transfers drew attention because they came as the crypto asset traded near its recent highs.
In June, Multicoin said it projected that HYPE could hit $319. The target came from valuing $8 billion in expected 2028 earnings at 20 times, which results in a $160 billion valuation based on an adjusted supply of about 502 million HYPE tokens. Its base case assumes crypto derivatives volume grows 35% annually, DEXs reach 32% of the derivatives market, Hyperliquid captures a 30% share, and USDC balances rise with volume.
On the other hand, its bear case puts HYPE at $109, while its bull case reaches $689 on $17.3 billion in projected cash flow. In the same report, Multicoin also compared Hyperliquid’s growth path with Binance’s rapid rise in 2017.
HYPE has been one of the best-performing assets this year. It has been on an absolute tear. The asset has gained 50% over the past month alone and recently established an all-time high of $86.71. It has since suffered a minor pullback, but continues to hover above $82.
Hyperliquid was also discussed during Donald Trump’s meeting with major crypto executives at the White House last month. Trump said CFTC Chair Michael Selig is working to bring the perpetuals-focused trading platform into the US. He said the goal is to make Hyperliquid operate in a “fully compliant and legal fashion.” The meeting also covered Bitcoin, the Digital Asset Market Clarity Act, and efforts to expand crypto activity in the US.
Due for a Drop?
While the broader outlook remains bullish, one trader is betting on a drop. Pseudonymous market watcher “swarmik” shared a bearish view on the token. The trader said it could fall 17.2% based on a four-hour chart setup while pointing to signs of weakness in the market structure. Heavy selling liquidity could push the price lower.
However, a potential correction could create an opportunity for a short position, with three downside targets being $76.77, $72.68, and $68.49. The trade would carry a risk level of 1.5R, according to the analysis.
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