Tornado Cash linked address unlocks $6.9 million in HYPE and begins selling, reappearing in the market after 12 months of silence

A wallet address cluster associated with Tornado Cash has broken a 12-month silence, with the first batch of 264,000 HYPE (approximately $6.9 million) unlocked and immediately started selling. The activity of this address cluster has attracted market attention because all the HYPE holdings originate from privacy mixing tools, with a total holding exceeding 4.36 million tokens.

Major Movement After Silence

Unlock Timeline

According to the latest information, activity in this address cluster is divided into two phases:

The amount unlocked this time accounts for about 14-15% of its total holdings. Notably, all HYPE held by this entity was purchased within three weeks after the Token Generation Event (TGE), with funds entirely sourced from Tornado Cash.

Background of the Address Cluster

• Total holdings: over 4.36 million HYPE
• Funds source: Tornado Cash (privacy mixing tool)
• Purchase timing: concentrated within three weeks after HYPE TGE
• Activity characteristics: dormant for over 12 months previously, recently resumed activity

Market Impact Assessment

Current Market Status of HYPE

Based on the latest data, HYPE’s market performance is as follows:

• Current price: $26.30
• Market cap rank: 13th
• 24-hour price change: +4.59%
• 7-day performance: +2.30%
• 30-day performance: -15.07%
• Market cap: $893 million
• 24-hour trading volume: $247.16 million

Potential Market Pressure

This large-scale unlock and sale could have the following impacts:

• Short-term selling pressure: The initial unlock of $6.9 million has already been sold, with more HYPE awaiting release
• Ongoing release risk: The total holdings of 4.36 million HYPE are only about 3% unlocked so far; subsequent unlocks may occur in phases
• Price pressure: With the current daily market volume of $247 million, large sales could exert downward pressure on the price
• Market sentiment: Large sales linked to Tornado Cash often trigger cautious market reactions

Key Points to Watch Moving Forward

From a personal perspective, there are several aspects of this address cluster’s actions worth noting:

First, the sudden activity after 12 months of silence may reflect the holder’s judgment of market timing. Since HYPE’s launch in July 2024, it has experienced significant volatility. The initiation of unlocks might be a response to the current price levels.

Second, the phased unlocking approach warrants close observation. The rapid pace from the large collateral release on January 2 to the first sale on January 5 suggests a quick succession. If this pace continues, it could release substantial liquidity in a short period.

Third, multiple mentions of Tornado Cash in related information highlight the active role of privacy mixing tools in the crypto market. Large operations by such addresses often attract market attention.

Summary

The unlocking and immediate sale of HYPE by an address cluster associated with Tornado Cash is a noteworthy market event. Key points include:

• The first batch of 264,000 HYPE (about $6.9 million) has been unlocked and sold; the total holdings are 4.36 million HYPE, with more to be released.
• The current HYPE market remains relatively stable, but large sales could exert short-term downward pressure.
• HYPE ranks 13th in market cap, with relatively good liquidity, though the unlocking pace and market absorption capacity should be monitored.
• It is advisable to closely follow the subsequent actions of this address cluster, especially the timing and scale of further unlocks and sales.