Paradigm Identified as Largest HYPE Holder

• On-chain data shows Paradigm holds 19.14M HYPE, or 1.91% of total supply and 5.73% of HYPE in circulation
• The HYPE position is split across 19 addresses and includes 14.7M HYPE staked and 3M HYPE sent to HyperEVM tied to Sonnet
• Analysts see Paradigm’s size as supportive for liquidity, but also as a concentration that could pressure HYPE if sold too fast

Paradigm, the institutional liquidity network for crypto derivatives, is being identified on-chain as the single largest holder of HYPE, the token that powers the Hyperliquid ecosystem. 

An X user tracking Hyperliquid wallets says Paradigm controls 19,141,655 HYPE worth about $763 million, placing the firm ahead of other known holders. The holding shows that a major market player is positioning inside HYPE at size, which usually helps liquidity and confidence. This insight is from independent chain research and not from Paradigm itself.

Paradigm Controls 5.73% of HYPE’s Circulating Supply

In a post on X, the user revealed that Paradigm’s near-billion-dollar bet on HYPE represents approximately 1.91% of the cryptocurrency’s total supply, and 5.73% of its circulating supply. Meanwhile, the tokens attributed to Paradigm are spread across 19 wallet addresses. It is worth noting that the revelation is based on the user’s independent research and not a result of Paradigm’s disclosure.

Related: Crypto Investigator ZachXBT Warns of a Fake Hyperliquid App on Google Play Store

In the meantime, the user further revealed that Paradigm continued to be involved in the Hyperliquid ecosystem through its cryptocurrency activities. In his latest post on X, the crypto user noted that Paradigm recently staked 14.7M HYPE worth $581 million and transferred 3.02M HYPE, equivalent to $119 million, to HyperEVM.

What Could Paradigm’s HYPE Holding Imply?

According to the user, Paradigm sent the recently transferred HYPE to a newly created wallet linked to Sonnet while delegating most of the staked HYPE to the Anchorage node by Figment, leaving a portion of the unstaked tokens in their staking balance.

The highlighted details reflect Paradigm’s confidence in HYPE, a development that most analysts consider positive for the cryptocurrency project. Typically, Paradigm, a major market player holding such a significant portion of the cryptocurrency, would support the token’s growth through increased liquidity and by promoting price stability.

Notably, the presence of such a recognized liquidity network in a project could boost investor confidence. However, such concentration could also expose the project to risks such as potential market manipulation if the HYPER holder decides to sell off a significant amount of the cryptocurrency over a short period.

Related: Zero-Fee Exchanges Threaten Hyperliquid’s Survival, Arthur Hayes Warns