The HYPE token just fell into technical bear territory after shedding over a quarter of its value since peaking in July. But oddly enough, its underlying network is thriving. Trading volumes are up, decentralized finance activity is booming, and developer traction looks stronger than ever.
That disconnect between fundamentals and price has some investors scratching their heads. Others? They’re just heading for the exits.
Price Drops, But Usage Hits All-Time Highs
The native token of the Hyperliquid network—HYPE—has plunged from $50 to around $36 in just a few weeks. That’s a sharp 26% correction and enough to tip it into bear market territory. Normally, that kind of chart action reflects fundamental weakness.
But here’s the twist: usage on Hyperliquid’s network is soaring.
The total value locked (TVL) on the network hit $3.97 billion this week. That’s up from $405 million at the start of the year—nearly a 10x jump. It’s rare to see a token plunge this hard while its ecosystem metrics keep setting new records.
That includes app revenue too, which hit $2.96 million in just the past 24 hours. Transaction fees? Even higher at $3.54 million.
Kinetiq, Morpho, and More Are Surging
Hyperliquid’s ecosystem isn’t just seeing growth—it’s seeing fast, wide-ranging expansion across multiple decentralized applications (dApps).
Kinetiq, the chain’s largest liquid staking protocol, now manages over $797 million in assets. That alone would be headline-worthy, but other apps are rallying too.
Morpho, Hyperlend, Felix, and the Hyperliquid app itself have all grown by at least 30% in the past 30 days.
It’s not a one-dApp chain anymore. That breadth of growth suggests real traction, not just hype cycles.
Still, token holders don’t seem impressed.
Trading Volumes Break Records, But Price Tanks
For the month of July, Hyperliquid’s decentralized exchange (DEX) handled $19 billion in volume. That’s up from $13.3 billion in June and $10.9 billion in May.
Even more staggering was its performance in the perpetual futures space. Hyperliquid’s perpetuals platform saw a jaw-dropping $313 million in trading volume in July—its highest ever.
That puts it ahead of almost everyone in the game. Jupiter, a major rival, posted $19.43 billion in volume by comparison, but on a much broader platform. Hyperliquid is operating in a tighter lane and still outpacing most peers.
And yet, the price continues to falter.
So, Why Is HYPE Falling?
There’s no single, clean answer—but several forces may be dragging the token down despite the good news elsewhere.
Profit-taking: After rallying to a fresh all-time high of $50, many early investors likely cashed out.
Broader market sentiment: The crypto market has been jittery lately, with liquidations and outflows hitting multiple altcoins.
Technical resistance: Traders saw warning signs as HYPE broke below key levels, sparking more downside pressure.
HYPE has also moved below its 50-day exponential moving average (EMA), often seen as a trend reversal signal. That kind of technical break usually fuels momentum-based selling.
Technical Setup Suggests More Pain Ahead
Chart watchers aren’t feeling too optimistic right now. Based on TradingView’s daily chart, HYPE is teetering just above a key support level at $35—the same zone that acted as resistance in December.
It’s already sliced through the ascending channel that supported its uptrend. That’s not a great sign.
If $35 gives way, the next major level to watch is the 50% Fibonacci retracement from this year’s rally. That sits at $29.46, a potential 21.8% drop from current prices.
Unless bulls step in soon, that’s where price could be headed.
