Price jump 125% in one day, what’s next?

Amid the ongoing bullish sentiment with major cryptocurrencies abuzz with gains, a newly launched crypto token gains traction with the successful HYPE airdrop. Popular decentralized finance (DeFi) protocol Hyperliquid launched its native token with a massive crypto airdrop a few hours ago. More importantly, the token is continuously rising, with the HYPE price increasing by 125% in a day.

HYPE Airdrop delivers 310 million tokens to the user

The Hyperliquid airdrop is one of the largest crypto airdrops that went live on November 29th. The team distributed 31% of the total supply, distributing 310 million tokens worth around $1.2 billion per listing price. The team has allocated an additional 38.8% to future community rewards and emissions and 24% to supporting key contributors to maintain the hype around the token.

Interestingly, they refrained from allocating funds to private investigators and other relevant entities such as centralized crypto exchanges and others, which was a different approach than others. The team also mentioned in the post that all unclaimed tokens will be returned to Hyperliquid Treasury and later used in the next crypto airdrop.

Hyperliquid $HYPE Claims are now live!

All unclaimed tokens will be returned to the Hyperliquid treasury and used in the next season. Hurry, time is limited!

Demand yours $HYPE Token now: https://t.co/CVuZ1EKxfh pic.twitter.com/tnMmKsF4D4

— HyperIiqulds (@HyperIiquldX) November 29, 2024

The crypto community is very excited about this opportunity. Here, one of the largest whales received 508,985 tokens through the HYPE airdrop, which corresponds to a current price of almost $350 million. Someone noted that they had already made $300,000 in profits from the airdrop influence on the HYPE price rally.

HYPE price rose 125% but could fall if

The token launched with a list price of $3.90 and has more than doubled in the last few hours alone. That took it to a new high of $7.11, but has fallen slightly since then. At the time of reporting, HYPE price is at $6.87 with a trading volume of $587 million, clearly indicating high demand.

Interestingly, most airdropped crypto tokens collapse immediately after launch due to increasing selling pressure. The same thing happened with X Empire and Hamster Kombat, whose prices continue to struggle to this day. However, this is not the case with this token as the price has increased by 125% since its launch.

There are more than 333 million HYPE tokens in circulation, building a market cap of $2.23 billion. However, this could all be for naught if the seller started selling the tokens, like with most crypto airdrops. Since users receive them for free and the newly launched tokens have high volatility, the recipient sells the airdropped tokens quite soon to make significant profits. However, this has not happened yet with the HYPE airdrop, but if it were to happen, the HYPE price could face a strong downtrend.

What’s in it for you?

As the crypto market becomes more and more important and regulation becomes better, demand is constantly increasing. It’s now a $3.42 trillion industry, and much more at its peak. However, building an image and attracting investor attention is challenging, especially during token launches. Some use crypto airdrop as a marketing tactic to increase the performance of the token. Hyperliquid did the same and launched the HYPE airdrop, distributing more than 310 million tokens and eventually driving the HYPE price to a new high of $7.11 after a surge of more than 125% in 24 hours. However, there is a risk of a collapse as selling pressure on the token increases.

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Pooja Khardia

With a deep passion for reading and five years of content writing experience, Pooja is now focused on creating trending content about the cryptocurrency market. As a dedicated crypto journalist, Pooja is constantly on the lookout for trending topics and informative statistics to create captivating articles for crypto enthusiasts. Keeping abreast of the latest trends and advances in the field is an essential part of their daily routine and motivates them to provide timely and insightful reporting

Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.