Hyperliquid has had a tough start to the third quarter, with its fundamentals falling to levels seen last in April. The decentralized exchange has seen its activity drop to $43B after a sharp jump to $84B in the perpetual volume at the beginning of July. This is a two-fold decline in activity in less than 3 weeks.
The overall Open Interest (OI), which measures the capital flows of open contracts inflows, also dropped from $75B down to $65B. It’s an OI drop of $10B, which further highlights the slowing momentum.
In the midst of this cooling off, revenues have decreased 3x. They went from an average weekly revenue of $23M down to $7.5M.
The chart shows that the declining perp volumes (purple) and revenue (red), have led to a lower price for HYPE tokens (green). It may have something to do with the rate of buybacks in light of declining revenue.
The HYPE Buyback has dropped by 50%
HYPE token buybacks increased by four times in June from a 14K daily average to 44K. This strong buyback, positive ecosystem catalysts, and ETF flow boosted the token’s price to $76.9 at the Binance Platform.
Since mid-June, buybacks have dropped by about half, to approximately 22K units.
It has not improved in recent days, despite the U.S Spot Hype ETF demand. In the last few days, there has been no demand for the product.
As fundamentals decline, buybacks will be reduced. a16z’s $30M sell-offHYPE’s recent price drop was not a shock, given the lack of institutional interest.
HYPE drops in price by 19% when traction is slowing
The price of HYPE at the time this was written, dropped 19% from its high of $75 in July. Price action remained around $60. It was a price high last year that acted a support 2026 and previous price peak.
The $60 support has been tested three times in May. It’s still not certain if it will last.
The importance of a weekly close that is below the critical support will be reinforced by a decisive candlestick closing. Hyperliquid [HYPE]’s weakening momentum.
Should the downward trend continue, $48 to $54 could become the next important support area. Hyperliquid still became an anomaly in 2026. It outperformed other tokens when it came to investor returns. We will have to wait and see if the risk appetite is improved.
Final Summary
- Hyperliquid has seen its revenue and volume drop by 3 and 2 times, respectively.
- In the last two years, HYPE has suffered a 20% drop in price due to the slowing economic fundamentals.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
