Investment firm Paradigm has made a large deposit of over $581 million in HYPE tokens, directing them to staking. This became one of the largest moves in the Hyperliquid ecosystem and noticeably reduced the share of freely circulating supply on the market.
The largest HYPE staking strengthened investor confidence
P/E ratio, weighted by HYPE supply volume, dropped to a new low, indicating strong demand for tokens within the ecosystem.
According to on-chain analytics, Paradigm, which has long been considered one of the largest HYPE holders, staked most of its tokens. This move significantly increased the share of “locked” assets, reinforcing the perception of HYPE as a limited and scarce asset.
The SWPE metric, reflecting the ratio of demand to free supply, hit a new low after the operation, indicating growing interest in the asset and steady support at current levels.
Previously, Paradigm did not disclose the size of its investments in Hyperliquid. Until recently, protocol funding remained opaque: it is only known that the project held one closed round without public participation from venture funds.
Now Paradigm has effectively identified itself as a key investor in Hyperliquid, controlling about 1.91% of the total token supply.
Paradigm transfers HYPE to Sonnet Treasury
According to blockchain data, in the latest operation the fund staked $581 million in HYPE, delegating part of the tokens to secure the network. Paradigm left about 1.4 million tokens in its spot balance, with the main part transferred to the Anchorage validator.
This coincided with the announcement of the creation of Sonnet Treasury, a company combining the assets of Sonnet Biotherapeutics and HYPE tokens. Paradigm contributed to this pool, which may indicate a strategy to earn passive income from staking and long-term support of the ecosystem.
Freezing part of the tokens reduced selling pressure and strengthened expectations of price stability. Following the news, Sonnet shares traded around $4.60, remaining in the average range of the past six months.
Although the decentralized asset technology (DAT) sector is experiencing a decline in interest, Sonnet is holding its position thanks to the success of Hyperliquid, which remains one of the leading decentralized futures exchanges. The HYPE token remains a key element of the HyperEVM network’s security, and Paradigm’s support increases the asset’s strategic importance.
HYPE tries to recover above $40
After a volatile October, when HYPE dropped below $40, the token is gradually regaining ground. At the time of publication, the price had risen to $39.34, showing signs of consolidation and attempts to form a local bottom.
According to Hyperliquid, open interest in the token is $1.36 billion, with more than 70% of traders holding long positions. Among large investors (whales), the share of longs is estimated at 67%, but the largest active position on the market is a short of $61 million, indicating a persistent risk of sharp price movements.
Over the past month, Hyperliquid has bought back about $80 million in HYPE from the market using a buyback mechanism. Low prices allow the project to conduct more active buybacks, supporting liquidity and helping the token form a stable price range. Nevertheless, buybacks mainly occur at the lower end of the range and have not yet led to new all-time highs.
Outlook: a bet on long-term growth
The Hyperliquid team expects that if current demand levels are maintained and the free supply of HYPE gradually decreases, the token will be able to return to an upward momentum phase.
According to the project’s internal forecasts, the token could reach $100 in the medium term if the current pace of staking and ecosystem activity continues.
New growth in demand for HYPE is expected as third-party protocols launch on HyperEVM, which will use the token as the main asset to secure futures contracts and pay fees.
Paradigm bets on fundamentals
Paradigm’s decision to lock a large volume of tokens in staking demonstrates long-term confidence in Hyperliquid and reduces investor concerns about short-term fluctuations.
This step not only strengthens trust in the project but also highlights HYPE’s transition from a speculative asset to an infrastructure token with sustainable yield.
Experts note that Paradigm’s support and consolidation near $40 form the basis for a new growth cycle.
“When strategic investors lock tokens, it signals not a sale, but belief in the long game,” commented Mica Research analyst.
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