Hyperliquid’s HYPE token soars 80% amid signs of underlying weakness and slowing fundamentals

Hyperliquid's HYPE token has surged around 80% over the past three months, outpacing Bitcoin, but rising on enthusiasm that may outstrip its underlying network activity, prompting caution among analysts and traders.

Hyperliquid’s HYPE token has staged a powerful rally, rising about 80% over the past 90 days and outpacing Bitcoin as broader crypto markets have wobbled. The latest move has pushed HYPE to around $41, extending a run that has made the token one of the standouts in decentralised finance, even as traders remain wary of the wider backdrop.

But the price strength has begun to look less straightforward when measured against the network’s underlying activity. Over the same period, fees have fallen, open interest has dropped sharply from its peak and capital has flowed out of the network, suggesting that enthusiasm for the token is running ahead of some of the fundamentals that usually support a sustained advance. Analysts have also pointed to a higher fully diluted price-to-sales ratio, a sign that investors are now paying more for each dollar of revenue than they were a few months ago.

There are still pockets of real growth. Recent data cited by industry outlets shows active addresses have climbed, stablecoin supply has expanded and HIP-3 volumes have surged, underlining that parts of the ecosystem remain busy. Earlier in the year, Hyperliquid was also benefiting from strong trading fees, buybacks and a broader expansion in derivatives activity, with some reports describing the protocol as one of the strongest revenue generators in decentralised finance.

The outlook, however, is less clear than the price chart suggests. CoinMarketCap’s market analysis said a jump above $40 was helped by whale accumulation, token burning and expectations around the HIP-4 upgrade, while technical traders remain split over whether HYPE can extend towards the mid-$40s or slip back towards support. On social media, some analysts have argued the token could still reach $75 if momentum holds, but others say a break below a bullish trendline would be a warning that the rally is losing strength.

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Source: Noah Wire Services