The craze recedes, crypto funds lock in nearly $150 million for withdrawals

Hyperliquid's $HYPE fell to about US$58 early on Wednesday, and a large number of pledge withdrawals were waiting in line. The market will face significant supply pressure in the coming week.

On-chain data compiled by Block Liquidity shows that a series of de-pledge and withdrawal requests involving multiple major crypto funds are being coordinated. According to Block Liquidity's fund flow tracking, Multicoin Capital controls a total of US$138.78 million in pledged HYPE, of which approximately 83%(approximately US$116 million) are shown as pending withdrawals. In addition, Selini Capital and Galaxy Digital also queued up for withdrawals of $4.4 million and $29.4 million respectively. Block Liquidity also marked a wallet associated with Multicoin and deposited approximately 167,000 HYPEs (approximately $11.2 million) with Coinbase, indicating that at least some of the tokens may have been used for potential sales or other processing.

Key Points

Block Liquidity data shows that about US$116 million in HYPE in Multicoin is pending withdrawal, constituting the main part of recent unlocks. Among the queues tracked, HYPE, with funds totaling approximately $150 million, faces unlocking-a huge size compared to the token's relatively weak spot market. HYPE's spot liquidity failed to match the withdrawal size;Block Liquidity recorded HYPE spot trading volume of US$72.8 million in approximately 28 hours. Selini's de-pledge appears to be related to the closure of the HIP-3 CASH perpetual contract market, and it is unclear whether the tokens will be reconfigured or sold. Tushar Jain, managing partner of Multicoin, said that the unlocked HYPE is not for sale, but the fate of liquidity after July 28 remains a key issue.

The cancellation of pledge queues brings short-term supply pressure

The pressure faced by HYPE comes directly from the scale of withdrawals initiated by market participants. Pending unlocks are expected to be completed in approximately five to seven days, which is effectively equivalent to releasing a large amount of newly available HYPE into the mobility ecosystem in a short period of time. Although HYPE perpetual contracts have much larger volume-reported daily perpetual contract volume is about US$400 million-the spot market is much smaller. Block Liquidity recorded only $72.8 million in HYPE spot trading volume as of about 28 hours early Wednesday, involving 1463 independent buyers and 982 independent sellers. Wintermute was the largest net buyer, with net purchases of more than $9 million, while the largest net seller reduced its position by approximately $5.2 million.

This imbalance-the withdrawal queue may be close to $150 million, while daily spot trading volume is much lower-helps explain why traders respond quickly when unlocking information becomes visible. Even if not all tokens are sold, the market often prices uncertainty about absorptive capacity, especially when spot liquidity appears weak relative to potential supply.

Whether tokens will be sold is unclear.

The main variable facing investors and traders is straightforward: Will these withdrawals translate into market sales or be redeployed to other parts of the Hyperliquid ecosystem? For Selini Capital, the de-pledge appears to be related to the closure of the HIP-3 CASH perpetual contract market operating under the HIP-3 framework. Withdrawal activity is related to Selini's unpledged flow. More broadly, DreamCash points to the difficulty of maintaining liquidity in relevant markets, especially after the USDC has become more entrenched in the Hyperliquid trading environment. Under the HIP-3 deployment, the perpetual contract deployed by the builder requires the pledge of 500,000 HYPEs as a forfeitable security deposit. This margin is expected to be refunded when the market closes, making unlocking closer to a "release of collateral" than a direct liquidity event. Still, collateral can still be sold-possibly through over-the-counter channels-depending on the fund's strategy and risk appetite.

Therefore, the short-term direction of the market depends on what happens after the July 28 unlock and follow-up processing window. As of press time, HYPE has fallen about 11% in the past week, and even if it has rebounded from the day's lows, it has not yet returned to its previous highs.

Multicoin's Role: Potential Redeployment rather than Liquidation

Although Selini's unlocking is related to the closure of specific HIP-3 markets, pending withdrawals from Multicoin may represent liquidation or reconfiguration into a new deployment. The distinction is important: Redeployment to a new perpetual contract can keep the token in the ecosystem, while if the selling pressure is high enough, the sale can put downward pressure on the spot and potential perpetual contract prices. Multicoin also recently participated in a venture capital investment related to Hyperliquid-. Last week, the company led a $1.75 million seed round of funding from Trasia, which is described as an Asia-focused, unmanaged trading platform designed to launch perpetual contracts for Asian stocks. Managing partner Tushar Jain said in a post on the X platform that Trasia is targeting "new users who are not familiar with Hyperliquid." In an update on the X platform late Wednesday, Jain also claimed that HYPE, which was being unpledged, was not for sale. The statement directly responded to the question traders were asking: Does the visible withdrawal queue evolve into a sell-off event or an act of transferring collateral to a new deployment.

Investors may pay close attention to the July 28 unlock to see where the asset will go next. If HYPE is redeployed to a new HIP-3 market or other ecosystem use, the market may stabilize once the immediate risk of selling recedes. However, if liquidation is implied by means such as the transfer of tokens to an exchange, the pressure of oversupply may last longer than the processing window itself.

Market Observation: Focus on the flow of funds after the unlock window

For now, HYPE's short-term price trend seems to depend more on supply mechanisms than long-term demand: Whether pending withdrawals are converted into spot sales or redeployments. The decisive signal will be the routing after unlocking-whether the tokens flow to the new perpetual contract deployment or to the exchange-especially in the days before and after the July 28 release.