Major HYPE holders are reassessing positions: sell-off or rotation?
An interesting dynamic is brewing in the Hyperliquid (HYPE) market. I am observing significant fund movements from institutional wallets, which many have rushed to interpret as the start of a massive dump. However, as my analysis shows, the picture is much more complex and not without nuance.
The first warning signal was the transfer of 495,473 HYPE, worth approximately $26.8 million, from a wallet linked to Selini Capital to the OKX exchange. Almost simultaneously, the market noticed activity from addresses associated with the Multicoin fund. Tokens began moving to Coinbase Prime. This happened just a month after Multicoin published an ambitious thesis, setting a target price for HYPE at $319. At the time of writing this review, the token is trading around $54 — a colossal gap.
What is Multicoin actually doing?
Let's reconstruct the timeline. Multicoin began building its position in HYPE back in February 2026, purchasing about 606,000 tokens through Galaxy Digital's OTC desk at an average price of around $30. By May, one of the associated wallets already held 1.96 million HYPE in staking (~$80 million at those prices). On June 25, the fund publicly named HYPE one of the largest positions in its liquid fund, and co-founder Tushar Jain advised accumulating the position gradually.
On July 21, the picture changed dramatically. 1.96 million HYPE were withdrawn from staking (worth ~$120 million at the time), and on the same day, another 395,500 HYPE worth $23.8 million moved to Coinbase Prime. The market perceived this as preparation for a sale. However, on July 22, Tushar Jain publicly stated: "We did not unstake to sell." According to him, institutional wallets had become too easily trackable, and address rotation is necessary to protect privacy and prevent front-running against the fund.
On July 29, the seven-day unbonding period ended, and 1.97 million HYPE became available for transfer. Over the week, their value dropped to ~$108 million, following the token's price. Immediately after the unlock, another 86,000 HYPE worth $4.8 million moved from a wallet linked to Multicoin to Coinbase Prime. There is still no direct confirmation of a sale. The transfer to Coinbase Prime could be related to custodial storage, OTC settlements, treasury management, or the same address rotation.
Fundamental Valuation: Grayscale Sees a Discount
While large wallets reshuffle assets, Grayscale's fundamental valuation of HYPE suggests the opposite. According to their calculations, the token trades at a forward multiple of about 15-18x earnings per token. Grayscale emphasizes that Hyperliquid has real cash flows, and HYPE can be valued like a stock, not a utility token. With this approach, in their view, HYPE remains undervalued.
My opinion: The market, as always, is overinterpreting the situation. The current movement of funds is more a sign of the asset maturing and transitioning from "retail" staking to more complex institutional capital management schemes. There is no direct evidence of a large-scale sell-off, and fundamental indicators, on the contrary, point to an attractive entry point for long-term investors who do not succumb to panic over on-chain movements.