Hyperliquid: Why whales are betting on HYPE’s yield strategy

In early December 2024, a Hyperliquid [HYPE] whale consistently added 20,849.76 HYPE per transaction through incremental spot purchases.

The first entry occurred near $7.91, after which subsequent buys clustered between $8.10 and $8.69.

Through this laddered execution, the wallet expanded its position from single-digit exposure to over 250,115 HYPE, reducing slippage while absorbing available liquidity.

This produced a time-weighted average cost well below the later $11.50 blended entry cited across the full HYPE accumulation window.

Wallet-level flows show a mix of DEX execution and CEX-linked inflows, indicating deliberate liquidity sourcing rather than urgency.

Importantly, this activity coincided with similar accumulation by other large-holder wallets, each scaling positions in comparable size bands.

That cohort behavior suggests strategic positioning ahead of staking rather than isolated speculation.

As supply rotated from liquid venues into staking, exchange balances thinned, compressing downside pressure and stabilizing market structure during the accumulation phase.

Hyperliquid TVL consolidates as fees sustain liquidity

Hyperliquid’s TVL expanded steadily through 2025, rising from roughly $2 billion early in the year to a peak near $6 billion by late summer. This growth coincided with sustained fee generation, signaling consistent trading activity rather than transient inflows.

As TVL climbed, daily fees also trended higher, frequently ranging between $3 million and $10 million, reinforcing the idea that capital remained productive.

However, momentum softened in the final quarter, with TVL retracing toward the $4-5 billion range.

Even so, it has held that level for several months, suggesting sticky liquidity anchored by active traders and protocol usage. This balance remains durable as long as volumes stay elevated and fee generation supports yields.

If trading activity weakens or competing venues absorb liquidity, TVL could compress further. Conversely, renewed volatility could quickly reaccelerate inflows.

Traders should therefore monitor fee consistency, large capital movements, and shifts in volume concentration, as these factors will likely dictate whether current liquidity levels stabilize or decisively break.

Staking strategy guides whale profit realization

A large $HYPE holder deposited approximately 665,000 tokens into Bybit on the 23rd of January 2026, realizing about $7.04 million in profit.

This move followed a structured strategy that began in late 2024, when the wallet accumulated roughly 651,900 HYPE near an average price of $11.50.

Rather than trading actively, the holder allocated the position to staking. As a result, rewards compounded steadily at around 2.3% APY, gradually expanding the total balance before withdrawal.

Meanwhile, Hyperliquid’s staking design shaped the exit timing. A one-day lockup and a seven-day unstaking queue delayed transfers to exchanges.

The deposit reflected planned intent rather than a sudden reaction, while protocol fundamentals remained strong. Annualized revenue neared $663 million, with about $54 million generated in the past 30 days.

Meanwhile, muted whale inflows indicated that the exit was driven by disciplined yield capture, not short‑term price timing.

Final Thoughts

• Whale accumulation and exits were driven by structured staking and yield capture rather than short-term price speculation.

• Hyperliquid’s liquidity stability reflects sustained fee generation, with future direction hinging on trading volume and volatility.