Hyperliquid is seeing a rocky start to the third quarter, with fundamentals falling to levels last seen in April. After a strong jump in perpetual volume in early July to $84 billion, decentralized exchange activity is now down to $43 billion. This represents a two-fold reduction in traction in less than three weeks.
Likewise, total open interest (OI), which measures capital flows for open contracts, fell from $75 billion to $65 billion. This represents a $10 billion decline in OI in July, further underscoring the slowdown in movement.
Amid the cooling off period, revenues dropped 3x from a weekly average of $23 million to $7.5 million this week.
As shown in the chart, a decline in revenue (red) and trading volume (purple) led to a decline in the price of the HYPE token (green). This may be related to the pace of buybacks amid declining revenues.
HYPE buybacks are cut in half
In June, HYPE buybacks increased 4x from a daily average of 14K tokens to over 44K tokens. Strong buybacks, positive ecosystem catalysts and ETF inflows boosted the token to a new record high of $76.9 on Binance.
However, the pace of repurchases has since fallen to around 22K HYPE, representing a sharp decline of half from mid-June levels.
Demand for the Spot HYPE ETF in the US has not improved the situation over the past few days. Since July 9, the products have not seen any demand or outflows, and July 15 was the exception.
As fundamentals decline and buybacks ease, A16Z sales of $30 millionand the lack of interest from institutional investors, HYPE’s price decline did not come as a surprise.
HYPE price drops 19% as traction slows
At the time of writing, HYPE is valued at $58, down 19% from a high of $73 in July. However, the price action was around $60, which served as a previous peak for the price last year and a major support in 2026.
It remains unclear whether the $60 support will hold after being tested three times since May.
Closing the crucial weekly candle below the crucial support level would consolidate Excess fluid (HYPE). Weak momentum.
In the event of an extended decline, the next major support area could be $48-$54. However, Hyperliquid became an anomaly in 2026 and outperformed many tokens in investor returns. It remains to be seen whether it will rebound strongly if risk appetite improves.
Final summary
- Hyperliquid’s lifetime volume and revenue decreased by 2x and 3x, respectively.
- The slowdown in fundamentals has weighed on HYPE’s price, resulting in losses of approximately 20%
