- Hyperliquid’s HYPE token dropped more than 6% in Thursday trading, marking the day’s worst performance among the top 100 cryptocurrencies.
- The price decline follows the HYPE token’s recent record high, falling below $36 after reaching $45.59 three days earlier.
- Despite the drop, HYPE remains up over 40% for the past month, partly due to its strong role in perpetual futures trading.
- Recent investments from Eyenovia and Lion Group Holdings triggered buying interest, followed by a quick selloff.
- Experts cite decreased trading volume and a slowdown in HYPE’s “buy-and-burn” mechanism as reasons for the drop.
Hyperliquid’s HYPE token lost over 6% of its value in Thursday’s trading, making it the poorest performer among the top 100 cryptocurrencies by volume. The drop occurred just three days after the token hit a record high, with prices falling below $36—its lowest in ten days—according to data from CoinGecko.
The broader altcoin market was mostly negative or flat, with major tokens like XRP and Solana each dipping about a fraction of a percentage point. Overall, the total crypto market capitalization fell by 2.5% during the U.S. Juneteenth holiday.
HYPE saw rapid gains earlier, climbing over 40% in 30 days, benefiting from its strong position in perpetual futures trading. These trading products allow investors to use higher levels of leverage for speculation. The token began trading in December 2024.
Rajiv Sawhney, international portfolio management lead at Wave Digital Assets International, linked the recent setback to investors selling after new corporate treasury investments by Eyenovia and Lion Group Holdings. Eyenovia, a U.S.-based ophthalmic firm listed on NASDAQ, recently raised $50 million to acquire more than 1 million Hyperliquid tokens, according to this announcement. Lion Group Holdings of Singapore also revealed it had secured a $600 million credit line to create a crypto reserve featuring HYPE, detailed in this report.
“This phenomenon has been occurring quite regularly recently, whereby corporates announce a crypto buying program, and the market immediately buys the pop and then sells following the announcement,” Sawhney told Decrypt. He added that the token’s fall is not surprising given the recent all-time high and a broader lack of trading direction.
Illia Otychenko, lead analyst at CEX.IO, pointed to a 50% decline in trading volume since mid-May and noted that HYPE’s “buy-and-burn” mechanism—where tokens are bought and destroyed using trading fees—originally supported the rally. “As platform activity slows, this price-supporting mechanism has weakened, removing a major source of upward pressure," Otychenko said.
HYPE continues to be closely watched as traders respond to both market shifts and developments from major corporate investors.
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