Hyperliquid is having a rough start to the third quarter, with fundamentals falling to levels last seen in April. After a sharp rise in perpetual volume in early July to $84 billion, activity on the decentralized exchange has now fallen to $43 billion. This represents a 2x decrease in traction in less than three weeks.
Similarly, total open interest (OI), measuring capital inflows from open contracts, fell from $75 billion to $65 billion. This represents a $10 billion decline in July OI, further highlighting the slowdown in traction.
Amid the cooling period, revenues declined 3 times, from a weekly average of $23 million to $7.5 million this week.
As the chart illustrates, falling revenue (red) and trading volume (purple) have driven down the price of the HYPE token (green). This may be linked to the pace of buybacks in a context of falling revenues.
HYPE takeover falls by half
In June, HYPE buybacks increased 4x from a daily average of 14,000 tokens to over 44,000. The strong buyback, positive ecosystem catalysts, and ETF flows propelled the token to a new all-time high of $76.9 on the Binance platform.
However, the pace of redemptions has since fallen to around 22,000 HYPE, marking a sharp halving from its mid-June levels.
And American demand for Spot HYPE ETFs has not improved the situation in recent days. Since July 9, the products have not seen any demand or outflow, with the date of July 15 being the exception.
With declining fundamentals, an easing of buybacks, The sale of a16z for 30 million dollarsand the lack of interest from institutional investors, the decline in HYPE prices was not a surprise.
HYPE Price Falls 19% as Traction Slows
At the time of writing, HYPE was valued at $58, down 19% from July’s high of $73. Nonetheless, the price action was around $60, which was a previous price peak last year and key support in 2026.
It remains unclear whether the $60 support would hold after being tested three times since May.
A decisive weekly candlestick closing below crucial support would strengthen Hyperliquid (HYPE) the momentum weakens.
In the event of an extended decline, $48-$54 could be the next key support area. Despite this, Hyperliquid became an outlier in 2026 and outperformed several tokens in terms of investor returns. It remains to be seen whether it will rebound strongly if risk appetite improves.
Final summary
- Perpetual volume and hyperliquid revenue decreased by 2x and 3x, respectively.
- The slowdown in fundamentals weighed on the price of HYPE, causing losses of almost 20%.
