HYPE token surges 63% after a billion-dollar airdrop

HYPE token price grew significantly in the first 12 hours of its release, soaring from its initial cost of $3.90 to trade at $6.16 after the Hyperliquid’s airdrop. The growth accounts for 63%, leaving holders enthusiastic about its future. 

Hyperliquid held the largest airdrop in the DeFi protocol on November 29, giving out 310 million HYPE tokens to the community. The coin’s current market cap is nearly $2.2B.

HYPE token supply plan is scheduled up to 2028

Hyperliquid, a layer one blockchain based on PoS consensus, can process up to 200,000 transactions per second. The token is critical to the ecosystem as it works as the staking asset and gas token for its Ethereum Virtual Machine Compatible Layer, HyperEVM.

According to the protocol, Hyperliquid supplied 31% of its $1 billion tokens on its first airdrop. They reserved 38.8% for future emissions and community rewards, 6% went to the Hyper Foundation treasury, and 0.3% was directed to grants.

According to the plans, core contributors will have 23.8% of the total supply during the first-year lock period, while the schedules will run beyond 2028. It didn’t reserve allocations for CEX, private investors, or market influencers. 

This airdrop is among the largest in De-Fi history

So far, this airdrop is among the most historic on the DeFi protocol. In September 2020, another considerable airdrop was made by Uniswap. Uniswap’s airdrop distributed 400 UNI tokens each, to more than a quarter million addresses. By then, each token was about $3.40, which equaled almost $1,300 per recipient. Several users rushed to cash out their tokens after the airdrop, which worked in favor of the holders. The value of Uniswap rose to over $42 just a few months after the airdrop.

The Arbitum protocol also had a memorable airdrop in 2023. It distributed its native token, Arbitrum, to 625,000 active wallets for a market value of $1.30 each, for a total of $812,500.

Airdrop is not a new concept in the crypto space. In most cases, new or existing tokens are distributed for free to several users. The reasons for airdrops vary from promoting new tokens to giving incentives to early adopters. So far, data from CoinGecko indicates crypto tokens worth $26.6 billion have been distributed to users through airdrops.

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