Hyperliquid’s HYPE closed the first quarter of 2026 with better returns for investors compared to Bitcoin (BTC) and Ethereum (ETH). The altcoin posted quarterly gains of 48%, while BTC lost 25% and ETH plunged 32% over the same period.
In other words, HYPE outperformed BTC by over 70%, making it a key outlier during the West Asian crisis. In fact, according to David Schamis, CEO of Hyperliquid Strategies, the outperformance could extend into the second quarter.
According to the executive, “Hyperliquid has finally gotten a little more press recently, but no one is really talking about this massive outperformance compared to the two biggest cryptos. It’s truly incredible and it will continue.
Schamis was referring to JPMorgan and Bloomberg’s recent coverage of oil and gold traders opting for Hyperliquid to trade over the weekend during the West Asia crisis.
In fact, the crisis has increased trading of non-crypto assets (also known as HIP-3) on the platform. As we enter the second quarter, HIP-3’s growth has not slowed down, which could provide more bullish momentum for the altcoin if overall market sentiment recovers.
HIP-3 Daily OI Exceeds $2 Billion
At the end of March, the daily Open Interest (OI) of the HIP-3 market exceeded $2 billion for the first time. Interestingly, non-crypto asset traders also remained loyal to the platform, reaching an all-time high. 60% retention over the same period.
Thanks to these regular traders, it is no surprise that the non-crypto trading segment on Hyperliquide continues to reach record levels. Here, it is worth highlighting that daily HIP-3 volumes now average about 38-48% of the total hyperliquids business.
In other words, HIP-3 adoption has become a key business activity and, by extension, a revenue generator.
Since most of Hyperliquid’s revenue ends up in aggressive HYPE buybacks, HIP-3’s growth has been significantly positive for the altcoin’s value.
By mid-February, the platform’s weekly revenue doubled from around $8 million to $12 million to $14 million in March. This was after a whopping monthly revenue of $68.8 million in January. As the chart illustrates, HYPE redemptions (green bars) peaked in January, mid-February and the first half of March.
Unsurprisingly, the redemption peaks coincided with HYPE’s bullish momentum. In January, the altcoin surged 86%, from $20 to $38. After a brief return to $25, the next leg of the rally (in February and March) rose THRESHING to $42 – marking another 72% increase.
As such, the recent pullback could present a buying opportunity if HIP-3 growth persists and overall market sentiment improves in the near term.
Final Summary
- HYPE outperformed ETH and BTC by over 70% in Q1, making it a key outlier and crucial crypto watchlist item in Q2.
- HIP-3 markets continue to attract traders and have exceeded $2 billion in daily OI and could drive buybacks and HYPE in the medium term.
