Paradigm Stakes $581 Million in HYPE to Bolster Hyperliquid Ecosystem

In a major institutional move, Paradigm has staked approximately $581 million worth of HYPE tokens, the native cryptocurrency of the Hyperliquid perpetual DEX, signaling strong confidence in the project's future. On-chain data reveals that Paradigm, holding around 1.91% of the total HYPE supply, deposited 14.7 million tokens, with 3.02 million HYPE (valued at $120 million) allocated directly to HyperEVM and the majority delegated to the Anchorage validator node operated by staking provider Figment.

This staking initiative aims to reduce selling pressure and support the HYPE token, which is trading just below $40, recently recovering to $39.34 after a deleveraging event on October 11. Paradigm retains 1.4 million HYPE ($55.9 million) in its spot balance for liquidity, while the staking is partly tied to the Sonnet Biotherapeutics merger and the creation of a HYPE treasury for passive income.

The staking has driven key metrics, with the Supply Weighted P/E ratio hitting a new low, indicating robust demand. Hyperliquid has also conducted $80 million in buybacks over the past month to stabilize the token, though open interest remains at $1.36 billion, with over 70% of traders and 67% of whales holding long positions, despite a notable short position of over $61 million.