Hyperliquid(HYPE) price prediction: $40 million Token unstaking is imminent, can Q3 continue the over 200% rise of Q2?

As Bitcoin (BTC) broke through $111,000 at the end of May, Hyperliquid(HYPE) followed closely, breaking through $30, and then climbing all the way to $45.83, setting two historical highs in less than a month.

Q2 Returns: +204%, Driven by Genuine Market Participation

Hyperliquid's return rate reached 204% in the second quarter of 2025, driven by its genuine market participation on decentralized contract trading platforms. Hyperliquid's trading volume surpassed $20 billion in 30 days, solidifying its leadership position in the decentralized perpetual contract (perps) market.

But the question is, can Hyperliquid maintain this momentum and successfully transition into Q3? With an important protocol milestone approaching, Hyperliquid's resilience will face a severe test.

Kinetiq upgrade triggers $40 million HYPE rotation

In the past, Hyperliquid did not provide rewards for staking HYPE tokens, which limited the utility of HYPE to governance and protocol alignment. Therefore, staking HYPE did not generate actual income.

However, this situation will change with the Kinetiq upgrade on July 15, 2025. Through this upgrade, for the first time, users will be able to convert HYPE into kHYPE, thereby unlocking real earnings.

This marks a significant turning point for Hyperliquid, as HYPE transitions from a purely utility token to an asset that can generate yields.

In fact, whale funds have begun to layout in advance. Currently, three large wallets have started to unstake nearly 1 million HYPE, worth $40 million, and are expected to be redistributed to kHYPE to capture early staking rewards.

Hyperliquid Market Structure: Cracks are Emerging

Despite the positive impact of the Kinetiq upgrade, Hyperliquid has shown some weakness in market performance. According to AMBCrypto, HYPE has performed poorly across several key metrics, even though the Relative Strength Index (RSI) is well below the overbought zone, indicating that this pullback is not due to market fatigue.

HYPE Price Trend

Source: TradingView (HYPE/USDT)

As approximately $40 million of uncollateralized HYPE re-enters the market, will this influx of funds further exacerbate the volatility of the Hyperliquid market?

Liquidity rotation instead of exit: Is Hyperliquid迎来结构性反弹?

Hyperliquid achieved over 200% growth in the second quarter, peaking at $45 before retracing by 30%. This process demonstrates the classic profit-taking pattern.

However, the subsequent rebound was very rapid, indicating that there is still strong buying power in the market.

It is worth noting that despite the Open Interest reaching a record $1.98 billion, there has not been a significant de-leveraging in the market, which further reinforces the directional confidence in the market.

Hyperliquid Market Data

Source: Coinglass

If this market structure can be sustained, $40 million of uncollateralized HYPE funds could become a new starting point for an upward trend, especially after the Kinetiq upgrade, when HYPE will transform into an asset deeply integrated with DeFi.

Systematic Value Addition: The next step for HYPE is sustainability rather than speculation

As capital gradually becomes more productive, Hyperliquid's next step may not just be a market rebound driven by short-term speculation. With the upgrade of Kinetiq, the role of HYPE will shift from a mere speculative tool to an asset with income-generating capabilities, which means Hyperliquid may enter a more systematic growth trajectory.

Therefore, the future market performance of Hyperliquid may no longer rely solely on short-term price fluctuations, but is closely related to its integration and value representation within the DeFi ecosystem.

Summary: The Future of Hyperliquid - The Prospect of Yield-Generating Assets

Hyperliquid has upgraded to empower HYPE through Kinetiq, transforming it from a purely governance token into a yield-generating asset. The advance positioning of whale funds in the market and their demand for kHYPE may indicate that Hyperliquid is likely to experience further growth in the coming months. Although there are unstable factors in the current market structure, with improvements in liquidity, Hyperliquid could potentially see a new structural rebound.