HYPE Plummets 60%: Hyperliquid’s Shiny Aura Fades… Again! 🌩️

by

Key Highlights

  • The once-mighty HYPE, now reduced by 60% from its zenith, finds itself besieged by an influx of tokens, their unrelenting tide sapping the market’s vitality, even as the platform’s activity remains a tempest of steadfastness. 🧊
  • Monthly token unlocks of 9.9 million HYPE, a deluge akin to a summer downpour, outpace buybacks, casting a shadow over even the most robust trading volumes and revenue. 🌧️
  • The perpetual DEX market share, once a proud 57%, now dwindles to a meager 16%, a testament to supply pressure and the cutthroat dance of competition. 🐍

The native token of Hyperliquid, that paragon of decentralized perpetuals, has plummeted by a staggering 60% from its September zenith, a descent as dramatic as a falling star in a twilight sky. Yet, the crypto world, ever eager to anoint new kings, was convinced that Hyperliquid would not only supplant centralized exchanges but ascend to the heights of parabolic glory. 🚀

According to CoinMarketCap, at the time of writing, HYPE languishes at $24.11, a 17% slide in seven days. At its September 18, 2025, apex, it soared to $59.39-a tale of two moons. The decline, however, is no mere whim of the market; demand and trade activity remain as fervent as a lover’s sigh. 💔

TradingView’s charts reveal HYPE’s four-hour journey, a descent from the high $30s to the low $20s, a dance of lower highs and lows. The altcoin, once a beacon, now teeters on the edge of its past glories, a ghost of what it was. 🕯️

Technical analysis tools, those sages of the market, whisper of a bearish fate. The RSI, that arbiter of market sentiment, languishes in the low 40s, a testament to the absence of fervor. The MACD, a gauge of momentum, slinks below its signal line, its histogram a grim reminder of the market’s relentless sell-off. 🐺

Strong Revenue but Under Token Pressure

Yet, even as HYPE falters, the fundamentals of Hyperliquid remain as sturdy as a fortress. DefiLlama reports annualized fees nearing $970 million, with protocol revenue of $883 million-$874 million funneled back to token holders. A symphony of profitability, if only the tokens would cease their cacophony. 🎶

Market activity, a whirlwind of 30-day perpetual trading volume at $204 billion, and daily open interest of $6.8 billion, speaks to a frenzy of capital and trader interest. HYPE, that liquid darling of DeFi, glides with the grace of a swan amidst ducks. 🦆

The Rise of Hyperliquid Competitors

The decentralized perpetuals arena, once a solo act, now hums with competition. Aster, that cunning rival, commands $9.16 billion in trades, while Hyperliquid trails at $8.56 billion. Yet, Hyperliquid’s open interest, a mighty $6.82 billion, signals the endurance of long-term bets. 🧠

Lighter, with its $252.9 billion in 30-day volume, but meager open interest, suggests a fleeting dance of positions. EdgeX and ApeX, modest yet consistent, echo the moderate thrum of participation. Hyperliquid, however, remains the titan of capital depth. 🏛️

The erosion of market share, a slow unraveling, sees perpetual DEX dominance plunge from 57% to 16%, while spot volumes shrink from $1.2 billion to $200 million. A tale of waning influence, as competitors flex their muscles. 🦍

Token Unlocks Drive Price Pressure

Analyst Hanzo, that seer of market truths, points to the “Unlock Death Spiral” as the culprit. With 9.9 million HYPE monthly, a flood of $270 million in supply, and buybacks absorbing only $90 million, the net selling pressure is a relentless storm. 🌪️

🚨 $HYPE WILL BE WORTH $1, AND HERE’S WHY:

Everyone keeps asking why HYPE is down ~60% from its ATH in September, when Hyperliquid is legitimately dominating.

They generated $874M in fees this year. $3T+ in volume. Surpassed Ethereum and Solana in 30-day fee generation.

Real…

– Hanzo ㊗️ (@DeFi_Hanzo) December 18, 2025

“The protocol prints money but the unlock schedule means relentless supply pressure regardless of how well the business performs,” Hanzo quipped, adding, “Perpetual DEX dominance dropped from 57% to 16% as competitors like Aster launched incentive campaigns.” 🕵️‍♂️

Unlocks, that specter of doom, triggered immediate selling. On November 29, a whale received 1.75 million tokens, with 600K sold off, sparking a $2.2 million dump. A single wallet, netting $122 million, sent the price into a 17% nosedive. 📉

Governance proposals, like the burning of 37 million tokens, offer a flicker of hope, yet they pale against the tidal wave of unlocks. Even active buybacks, that siren song of inflation, cannot stem the tide. Hyperliquid, though active, remains a ship adrift in a sea of uncertainty. ⛱️

Read More

2025-12-19 16:39