A recent on-chain analysis has revealed that Paradigm has established itself as the foremost holder of the HYPE token, controlling over 19 million units valued at approximately $763 million. This development underscores Paradigm”s significant investment strategy in the cryptocurrency market.
According to data from the analytics provider MLM, Paradigm”s holdings account for 1.91% of HYPE”s total supply and 5.73% of its circulating supply, officially confirming their status as the largest stakeholder. The firm executed the consolidation of its HYPE tokens into 19 separate wallets on November 7, an action analysts speculate is linked to the upcoming SONN event.
The speculation regarding Paradigm”s accumulation of HYPE began in August, shortly after the token”s generation event. This was further supported by transaction patterns observed with Wintermute and later FalconXGlobal on Gate.io. Transfers between these entities corroborated Paradigm”s public disclosures regarding their HYPE holdings since November of the previous year.
In December, a transfer of 4.18 million HYPE from Wintermute to a new wallet was noted, which was subsequently divided into ten sub-wallets, each receiving amounts ranging from 150,000 to 840,000 HYPE tokens. Additional transfers were recorded in February and April, culminating in over 15 million tokens acquired.
MLM has estimated Paradigm”s cost basis at approximately $16.46 per HYPE, suggesting an initial investment near $315 million. At the current trading price of $39.32, this positions Paradigm”s unrealized gains at over $440 million, reflecting a paper profit of nearly 2.5 times their initial investment. It is important to note that Paradigm has yet to publicly confirm these holdings.
Despite a recent downturn in HYPE”s price, which has seen a decline of 15% over the past month and currently sits 33% below its all-time high of $59.39, the token remains a significant player in the market with a market capitalization of $13.24 billion. The technical outlook reveals that HYPE is trading within a rising parallel channel, with the relative strength index (RSI) at 49.78. The moving average convergence divergence (MACD) line appears to be flattening, suggesting the market may be entering a consolidation phase.
If buying momentum resurfaces, HYPE could potentially test the upper resistance of its channel near $53. However, a breakdown in support could lead to a decline towards the lower Bollinger Band around $35.89.
