During a market downtrend – which tokens are suitable for long-term investment？

During a crypto market downtrend, most investors fall into a state of anxiety: prices drop sharply, negative news appears continuously, and liquidity nearly freezes. However, for those with a long-term perspective, a downtrend isn’t just a time to defend—it’s also an opportunity to select high-quality projects at reasonable valuations.

In reality, many of the most profitable investments in crypto were made during the market’s bleakest periods. When overall sentiment is pessimistic, projects with truly strong fundamentals, clear products, and long-term vision become even more noticeable.

In that context, the important question is: During a market downtrend, which tokens are suitable for long-term accumulation? This is why we need to carefully consider selection criteria and dive deeper into potential projects such as $HYPE.

I. Is the downtrend really that frightening?

When the market enters a downtrend, most investors react instinctively: panic selling, leaving the market, or staying on the sidelines out of fear of losing money. Consecutive red candles amplify pessimism, creating the illusion that all opportunities have vanished. But in reality, a downtrend has never been the end — it is simply a natural phase of the market cycle.

What many people fail to realize is that a downtrend is when truly strong projects reveal themselves most clearly. When speculative money flowing into “trend-following” projects disappears, only projects with real products, real teams, and clear long-term vision can survive. This is also the period when high-quality projects often become attractively priced, creating opportunities for long-term investors to accumulate at the most optimal cost.

Crypto market history has shown that the most successful investors are not those who buy at the peak of a bull run, but those who patiently accumulate during gloomy market periods. And in the current challenging environment, instead of being afraid, what matters most is choosing the right assets to invest in — projects with the potential to rebound strongly when the market enters its next growth cycle.

II. Criteria for choosing tokens for long-term investment

When the market enters a downtrend, choosing which tokens to hold for the long term cannot be based on emotion or short-term expectations. This is the stage where investors must thoroughly evaluate core factors to identify which projects are capable of surviving, growing, and breaking out strongly when the market recovers. Below are the most important criteria:

1. Development team & project vision

A sustainable project must be led by:

• A team with real, hands-on experience in the blockchain space.
• A clear development roadmap with consistent updates.
• Transparency in communication and product direction.

=> The strongest teams during a downtrend are often those who keep building, rather than only showing up during bullish periods.

2. Real products & real-world applications

A token only has value when the project has:

• A functioning product or a clearly ongoing development.
• Practical applications that users truly need.
• An ecosystem with a long-term expansion roadmap.

=> New trends may help a project gain temporary hype, but real products are what retain users and capital.

3. Capital flow & supporting investment funds

A project backed by major investment funds has:

• Stronger resilience during market downturns.
• A significant advantage in future fundraising.
• More credibility from both the community and the market.

=> If VCs continue to support the project during a downtrend, it is a strong signal of their long-term conviction.

4. Tokenomics & transparent unlock schedules

A good long-term token must have:

• A fair and reasonable allocation mechanism.
• A clear vesting schedule without constant sell pressure.
• Utility that brings real value within the ecosystem.

=> Sustainable tokenomics determine whether a token can maintain price stability and grow during the next market recovery.

5. Community strength & growth pace

A strong community indicates:

• Genuine interest in the project.
• Loyal users contributing to its development.
• Active engagement even when the market is quiet.

=> Projects with strong communities tend to recover faster after a downtrend.

6. Long-term vision & scalability

Downtrends are stress tests, and only projects with a 2–5 year vision can survive. A project that plans to expand its ecosystem, develop new products, and continuously innovate is far more likely to increase its token value over the long term.

III. Overview of HYPE

HYPE is the token tied to the entire Hyperliquid ecosystem — a rapidly growing decentralized derivatives exchange in the crypto market. Unlike many DEXs that operate on existing blockchains, Hyperliquid has built its own Layer-1 network optimized for high-speed, low-latency, fully on-chain transactions. This allows the platform to maintain transparency while still achieving performance comparable to traditional CEXs.

Within this ecosystem, HYPE serves as the “lifeblood” that powers operations: users can stake it to support the network, participate in key governance decisions, or receive benefits related to platform activities. Thanks to its combined approach — a derivatives DEX built on a specialized Layer-1 infrastructure — HYPE is not merely a utility token. It reflects the growth of the entire network as Hyperliquid attracts more traders, liquidity, and capital inflow.

Another notable point is Hyperliquid’s initial token distribution: the majority of HYPE supply goes to the community through airdrops and long-term reward programs, rather than being heavily allocated to the team or early investors. This creates stronger trust and reduces the risk of heavy sell-offs in the early phases.

With a total supply of around 1 billion tokens and a transparent vesting mechanism, HYPE is considered one of the healthier token structures among decentralized derivatives projects. As the Hyperliquid ecosystem continues to expand, the demand for using and holding HYPE is likely to grow naturally, instead of relying solely on short-term market hype.

IV. Why is HYPE suitable for long-term investment during a downtrend?

A downtrend is when the market “filters out” projects — weak ones get eliminated, while strong ones reveal their resilience. HYPE, the token of the Hyperliquid ecosystem, stands out due to the following factors:

1. Hyperliquid shows real growth while most DEXs are declining

(Sourse: DefiLlama) At a time when many DeFi protocols are experiencing sharp drops in trading volume and user activity, Hyperliquid is moving in the opposite direction:

• Derivatives volume remains stable and ranks among the top DEXs.
• The number of active traders is consistently strong.
• The system executes orders quickly and reliably, offering a CEX-like experience.

In a downtrend, the most important thing is having a product that actually works — not just hype. Hyperliquid is proving exactly that.

2. HYPE is tied to a real Layer-1 infrastructure — not just an “attached” token

Unlike many tokens with limited utilities, HYPE is directly connected to:

• Hyperliquid Layer-1: a network optimized for high-performance trading.
• Hyperliquid derivatives exchange: a product attracting a large number of real traders.
• A growing ecosystem: with many high-speed on-chain features.

As a result, HYPE’s value is tied to real platform activity, not just marketing.

3. Transparent, community-focused tokenomics — crucial during a downtrend

One major advantage of HYPE is its sustainable tokenomics structure:

• Most tokens are allocated to the community and long-term rewards.
• Core contributors have locked, long-vesting tokens → limiting sell pressure.
• No massive unlock events that cause heavy dumps like in many other projects.

In a weak market, “safe” tokenomics is extremely important to reduce negative volatility.

4. Technical charts show HYPE is at a strong support zone

Based on the chart you provided, we can observe:

• Price is reacting around the support zone at 35–37 USDT — a region that has served as a short-term bottom multiple times.
• If this support holds, it could be an ideal accumulation zone for long-term investors.

Key resistance levels the price may target during a recovery include:

• ~ 49 USDT
• ~ 50 USDT
• ~ 59USDT

This suggests HYPE is currently in a “compressed” price zone, suitable for long-term accumulation with considerable potential upside if a breakout occurs.

V. HYPE Tokenomics

HYPE’s tokenomics is designed with a focus on long-term stability rather than creating short-term sell pressure. The allocation chart and unlock schedule show that Hyperliquid prioritizes sustainable growth, transparency, and directing a significant portion of value toward the community.

(Source: Tokenomist)

1. Clear and reasonable token allocation

From the chart, HYPE is divided into the following main categories:

• Future Emissions – ~38.9%: long-term ecosystem rewards → helping maintain long-term growth momentum.
• Genesis Distribution – ~31%: initial allocation for the community/airdrop, creating broad decentralization from day one.
• Core Contributors – ~23.8%: allocated to the development team but locked and gradually vested → reducing the risk of heavy sell-offs.
• Foundation – 6%: used for ecosystem building and expansion.
• Community Grants – 0.3%: supports projects, builders, and developers.

This allocation reflects a clear direction: the community is the priority, while the team retains long-term incentives without unlocking too early.

2. Long vesting schedule – No dangerous “sell-off peaks”

The timeline chart shows that most tokens unlock gradually over several years, extending until 2028.

Key points:

• No sudden spikes in unlocked token supply.
• Unlock curve increases in smooth “light steps,” indicating stability.
• Monthly unlock rate is low → limited impact on price.

While many projects experience massive token unlocks that crash the price, HYPE’s vesting schedule is considered safer, more transparent, and more stable than most.

3. Genesis & community allocation is high — enabling true decentralization

With 31% allocated to the community at launch, HYPE avoids:

• Token concentration among VCs or the team
• Heavy selling pressure from private-sale investors
• Price manipulation by a small group

This makes HYPE more attractive to the trading community — the core user base of Hyperliquid.

4. Future Emissions ensure long-term “fuel” for the ecosystem

Nearly 39% of the supply dedicated to future rewards helps:

• Incentivize users
• Attract more traders
• Sustain network development for years
• Create value for staking and on-chain activity

This is a major advantage, as many projects run out of tokens for rewards after a few years and begin to stagnate.

5. Most importantly: No tokenomics that create heavy sell pressure

From the chart, it is clear that:

• Team unlocks slowly
• Community holds a large share
• Rewards are distributed gradually
• No major “cliff unlock” events

=> This makes HYPE well-suited for long-term investment, especially during a downtrend, when investors prioritize stability and low-risk tokenomics.

Conclusion: Is $HYPE worth investing in during a downtrend?

In the context of a prolonged market downtrend, choosing which assets to accumulate for the long term requires investors to focus on core quality rather than short-term volatility. And HYPE — the central token of the Hyperliquid ecosystem — stands out for three key reasons: the platform’s real growth, its essential role in the Layer-1 + derivatives DEX infrastructure, and its transparent tokenomics with minimal sell pressure.

On-chain data, trading volume, trader inflows, and price charts all indicate that HYPE is currently in a deep accumulation zone — reflecting a “compressed price” state commonly seen in strong projects during weak market phases. With an ecosystem that continues to expand and attract real users, HYPE has a solid foundation to endure the downtrend and potentially surge once the market recovers.

Therefore, for long-term investors with a clear strategy, HYPE is a worthwhile option to consider during a downtrend — as long as it is paired with proper risk management.

Disclaimer:The information provided here is for informational purposes only and should not be considered financial, investment, legal, or professional advice. Always conduct your own research, consider your financial situation, and, if necessary, consult with a licensed professional before making any decisions.