$40M in HYPE unstaked – Will this fuel Hyperliquid’s Q3 rally?

Key Points

1. Hyperliquid (HYPE) is trading as a high-beta mirror of Bitcoin (BTC), having surged 204% in Q2 and reaching two all-time highs, but recently pulled back 30% from its peak.

2. The Kinetiq upgrade on July 15 introduces kHYPE, enabling stakers to earn yield, prompting whales to unstake $40M worth of HYPE to reallocate into kHYPE for early rewards.

3. Despite recent underperformance and a break below its ATH, Hyperliquid's market shows resilience with no significant de-leveraging and strong buy-side interest.

4. The $40M in unstaked HYPE could act as a catalyst for a new rally, especially as kHYPE integrates HYPE into DeFi, making capital productive.

5. Hyperliquid's 30-day volume surpassed $200B, indicating strong momentum, but its market remains fragile ahead of the Kinetiq upgrade.