Hyperliquid Slips Below $60 as Institutions Unstake $291M: Will Selling Follow?

Two of crypto’s biggest funds just unstaked about $291 million of Hyperliquid (HYPE) in days. The token fell below $60, and traders feared a wave of selling.

Unstaking frees locked tokens for sale. But Multicoin says it is not selling, and on-chain data backs that up.

Why HYPE Fell Below $60

Hyperliquid is one of crypto’s busiest trading platforms. HYPE is now a top-10 token. It was trading for $58. That is down about 2% on the day. It sits about 24% below its June record of $76.70.

Multicoin unstaked close to 2 million HYPE, worth about $120 million. On-chain monitoring by MLM reveals that Paradigm unstaked even more. That was 2.92 million HYPE, worth around $171 million. Paradigm has not commented.

Together, that is about $291 million. It equals roughly 85% of HYPE’s daily trading volume. That is huge for a thin market. Lookonchain first spotted the Multicoin transfers. Some coins went to Coinbase Prime, a custody service.

Multicoin Capital appears to be taking profits on 606,091 $HYPE ($36.5M) bought around $30 5 months ago.6 hours ago, Multicoin Capital deposited 395,570 $HYPE($23.78M) into #CoinbasePrime and also requested to unstake 211,486 $HYPE($12.94M).Multicoin Capital's profit on $HYPE… pic.twitter.com/iMAbLhMZQr

— Lookonchain (@lookonchain) July 22, 2026

Multicoin Says the HYPE Unstaking is Not a Sale

Multicoin cofounder Tushar Jain pushed back fast. He said the fund unstaked HYPE, but not to sell it.

“Yesterday we unstaked a large slug of HYPE. We did not unstake to sell… Our funds are constantly tracked, forcing regular wallet rotations. Institutions need privacy to operate”

Big funds are watched on-chain all the time. So they rotate wallets to stay private. Jain made the same case in an earlier interview. His firm holds a bullish HYPE forecast for 2028.

A few weeks back, @Multicoin's cofounder @tushar_jain told us privacy wasn't optional for institutions moving onchain.This week's HYPE unstake proved it:"It's ridiculous to think institutions will move RWAs onchain and broadcast all their activity in real time.""So you need… https://t.co/w1Lbi4u01P pic.twitter.com/XnpkLFxJ4M

— The Rollup (@therollupco) July 23, 2026

Why is every move visible? Hyperliquid took no venture money. It gave HYPE away in a 2024 airdrop. So big holders bought on the open market. Every wallet they use is easy to track.

On-chain account Markets Alpha checked the wallets. Its analysis found four linked wallets. They moved the unstaked HYPE into custody, not onto the market to sell.

Did Multicoin Capital (@multicoin) just start selling HYPE?Yesterday, Multicoin requested to unstake almost 2M HYPE ($120M) and deposited 530k HYPE ($31.8M) into Coinbase.HYPE immediately dropped more than 3%, and several accounts claimed that Multicoin had sold those tokens… pic.twitter.com/eHkw71jc1p

— Markets Alpha (@MarketsAlpha) July 22, 2026

One group even sent about 1 million HYPE to Grayscale. That helped fill its new Hyperliquid ETF, HYPG. The fund began trading on Nasdaq in June.

Why Some Traders are not Worried

Not everyone sees a problem. Trader Elon Trades said HYPE usage barely changed. He pointed to its growing derivatives market share and steady revenue.

Multicoin unstaking a ton of $HYPE is one thing, but the actual usage numbers on @Hyperliquid haven’t really budged.Good thing they said it wasn’t a sale, which I take at face value for now because unstaking created some FUD.That said, when I checked the numbers its still in…

— ElonTrades (@ElonTrades) July 23, 2026

Still, more coins may soon hit the market. On Hyperliquid, unstaking takes about seven days, per its documentation. Most unlock near the end of July.

What happens next? The funds could restake, hold, or sell. For now, the project’s fundamentals look solid. But the HYPE unstaking still hangs over the price. To recover, HYPE must climb back above $60.