Wrapped HYPE Project Update

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Biggest Stories of 2025

• Derive Integration with Hyperliquid via HyperEVM: Derive announced a direct integration with the Hyperliquid ecosystem through HyperEVM, using a Bridge Vault contract to escrow wrapped HYPE (wHYPE) directly from Hyperliquid's native chain, allowing traders to use escrowed HYPE as collateral for perpetual futures and options. This remains relevant as it demonstrates continued DeFi composability for wrapped HYPE within the broader ecosystem. (February 10, 2026)
• Hyperliquid Labs First HYPE Token Distribution: Hyperliquid Labs was scheduled to receive its first distribution of 1.2 million HYPE tokens, valued at approximately $31.2 million, with future monthly distributions occurring on the 6th of each month. This marked the beginning of the core contributor unlock process, with over 61% of total supply still locked at the time. (January 6, 2026)
• Hyperliquid Team Token Unlock Adjustment: The Hyperliquid team adjusted its token unlock schedule, reducing the January 6 unlock amount by 30% from 1.7 million to 1.2 million HYPE tokens, and standardized the monthly team unlock date to the 6th of every month. This reflected a more measured approach to token distribution amid declining protocol revenue. (December 29, 2025)
• Assistance Fund HYPE Burn Approved: The Hyper Foundation's governance vote passed with 85% in favor of burning HYPE tokens held in the Assistance Fund, permanently removing them from circulating and total supply. This represented a significant supply reduction event for the HYPE token. (December 24, 2025)
• Hyperliquid Launches Portfolio Margin and BLP Pre-Alpha: Hyperliquid launched two new features in pre-alpha: Portfolio Margin, which unifies spot and perpetuals accounts for better capital efficiency, and BLP Earn vaults, which allow users to earn yield on stablecoins or borrow against HYPE holdings. The initial rollout was gated to accounts with over $5 million in all-time volume. (December 24, 2025)
• Hyperliquid Confirms Former Employee Behind HYPE Shorting Activity: Hyperliquid confirmed that a large HYPE token shorting incident originated from a former employee dismissed in Q1 2024 for insider trading, with on-chain analysis verifying the wallet address linked to the ex-employee was still actively holding HYPE short positions. This raised governance and transparency concerns for the protocol. (December 24, 2025)
• Hyperliquid Indicts Former Employee in HYPE Insider Trading Allegation: Hyperliquid publicly linked alleged insider trading involving HYPE token shorting to a former employee dismissed in early 2024, with co-founder Iliensinc denying the protocol's involvement. The protocol also announced plans to permanently make HYPE tokens held in the Assistance Fund system address inaccessible to reduce total supply. (December 22, 2025)
• 'Team isn't shorting HYPE' - Hyperliquid Labs Clarifies Insider Trading Claims: Hyperliquid Labs attributed recent HYPE token sell-off claims to an ex-employee rather than current team members, and validators passed a proposal to burn HYPE tokens acquired via automated buybacks, representing 11% of the circulating supply. This clarification was important for maintaining community trust. (December 22, 2025)
• Gemini Listing: Hyperliquid (HYPE) became available for trading on Gemini, with deposits and withdrawals enabled. This expanded access to HYPE for a broader set of investors through a regulated U.S. exchange. (December 19, 2025)
• Cantor Turns Bullish on Hyperliquid: Cantor Fitzgerald projected the HYPE token could reach over $200 in the long term, anticipating Hyperliquid DEX volume would grow at a 15% annual rate and generate $20 billion in fees over the next decade. This institutional endorsement highlighted long-term confidence despite near-term market share pressures. (December 17, 2025)
• Assistance Fund HYPE Burn Proposed: The Hyper Foundation proposed to recognize all HYPE converted by the Assistance Fund as burned, permanently removing the tokens from circulating and total supply, with validators signaling intent through a stake-weighted consensus. This proposal set the stage for a major supply reduction. (December 17, 2025)
• Hyperliquid Labs Token Distribution: November 2025: Hyperliquid Labs disclosed that the 238 million HYPE (23.8% of total supply) allocated to core contributors had been unlocked, with 1.75 million HYPE distributed as of November 29, 2025. Most core contributors' vesting schedules were noted to complete between 2027 and 2028. (November 29, 2025)
• HYPE on Derive: Derive announced its direct integration with the Hyperliquid ecosystem via HyperEVM, enabling support for the Hyperliquid community without requiring assets to leave HL custody. This integration expanded utility for wrapped HYPE as collateral in derivatives trading. (November 20, 2025)
• Circle Investment in Hyperliquid Announced: Circle disclosed it had become a direct stakeholder in HYPE and was actively exploring additional ways to participate in the community, including the possibility of becoming a Hyperliquid Validator. This signaled growing institutional interest in the Hyperliquid ecosystem. (September 16, 2025)
• beHYPE Announced (Launch Confirmed): The Hyperbeat and etherfi teams confirmed the launch of beHYPE following the completion of audits by Nethermind and Certora, with the beHYPE validator set including all active community validator nodes. This represented etherfi's entry point into the Hyperliquid ecosystem. (September 9, 2025)
• Bitfinex Listing: Bitfinex listed Hyperliquid (HYPE), with trading scheduled to commence on September 4, 2025. This added another major centralized exchange venue for HYPE trading. (September 2, 2025)
• Anchorage Digital Bank to Custody HYPE: Anchorage Digital announced that Anchorage Digital Bank would provide custody services for HYPE, enabling institutions to hold HYPE on HyperEVM through Anchorage Digital Bank and Anchorage Digital Singapore. This provided institutional-grade infrastructure for HYPE holders. (August 13, 2025)
• beHYPE Announced (Initial): The etherfi team announced the upcoming launch of beHYPE, a CoreWriter and HIP 3 liquid staking token built for Hyperliquid in collaboration with HyperBeat, with pre-deposits capped at 2.5 million HYPE. This introduced a liquid staking solution for HYPE holders. (July 18, 2025)
• Sonnet BioTherapeutics HYPE Treasury Combination: Sonnet BioTherapeutics announced a definitive agreement for an $888 million business combination with Rorschach I LLC, with the merged company to be named Hyperliquid Strategies Inc. and expected to become the largest U.S.-based publicly listed company to hold HYPE in its treasury. This represented a major institutional treasury adoption of HYPE. (July 14, 2025)
• Hyperliquid Validator Set Increased to 24: The Hyperliquid team announced that the active validator set would increase from 21 to 24 validators in approximately one month. This continued the progressive decentralization of the network. (July 3, 2025)
• Maple HYPE Collateral Support Launched: The Maple team announced that Hyperliquid (HYPE) was now accepted as collateral for institutional borrowers. This expanded HYPE's utility in institutional lending markets. (June 26, 2025)
• Hyperliquid Cryptocurrency Treasury Reserve Strategy: Eyenovia announced a securities purchase agreement for a $50 million private placement to establish a treasury reserve of HYPE, with plans to acquire more than one million HYPE tokens, seek validator status, and rebrand as Hyperion DeFi. This was an early example of a public company adopting a HYPE treasury strategy. (June 18, 2025)
• Hyperliquid Validator Set Increased to 21: The Hyperliquid team announced that the validator set had been increased to 21, with anyone able to register a validator and the 21 largest validators by stake forming the active set. This marked a key step in the network's decentralization roadmap. (April 21, 2025)
• Staking Tiers Announced: The Hyperliquid team shared plans to update the fee system to include Staking Tiers ranging from Wood (10+ HYPE staked, 5% discount) to Diamond (500,000+ HYPE staked, 40% discount), with spot volume counting double toward fee tiers. This incentivized HYPE staking and aligned user activity with token holding. (March 19, 2025)
• HyperEVM Announced: Hyperliquid announced the launch of the HyperEVM on mainnet, designed to function within the existing Layer 1 framework while maintaining security through HyperBFT consensus and being compatible with Hyperliquid's low-latency trading infrastructure. The initial release included a canonical WHYPE system contract to support DeFi applications, which is directly relevant to wrapped HYPE's role in the ecosystem. (February 18, 2025)