- Hyperliquid revenue fell threefold as trading volume and Open Interest weakened significantly.
- Lower buybacks and fading ETF demand increased selling pressure on HYPE.
- HYPE risks further losses if the critical $60 support level fails.
Hyperliquid’s HYPE entered the third quarter under growing pressure after several important performance metrics weakened within a few weeks. The decentralized exchange enjoyed impressive momentum during June and early July, but that strength has faded quickly. Trading activity has slowed, revenue has fallen sharply, and institutional demand has weakened. HYPE has also erased a large portion of recent gains, leaving investors questioning whether the token can continue defending the important $60 support level or whether another deeper correction now lies ahead.
Hyperliquid’s Growth Slows as Revenue and Buybacks Lose Momentum
HYPE experienced remarkable growth during the second quarter, driven by rising perpetual trading activity, expanding ecosystem participation, and strong investor confidence. That trend has changed noticeably during July. Perpetual trading volume climbed to roughly $84 billion during the first half of the month before falling to around $43 billion within less than three weeks. Such a sharp decline highlights weaker trader participation and slower activity across the platform.
Open Interest also reflected the same cooling trend. The total value of open contracts declined from approximately $75 billion to nearly $65 billion during July. A $10 billion reduction in Open Interest generally suggests fewer traders are maintaining active positions, reducing overall market participation and liquidity. Slower trading activity often affects exchange earnings, and recent revenue figures confirm that relationship.
Weekly revenue has dropped dramatically from an average of roughly $23 million to only $7.5 million. That represents a threefold decline within a very short period. Lower revenue also reduces the pace of ecosystem buybacks, removing one of the strongest sources of buying pressure that previously supported HYPE’s rally. During June, Hyperliquid increased daily buybacks from roughly 14,000 HYPE tokens to more than 44,000.
Will the $60 Support Continue Holding?
HYPE currently trades near $58 after declining roughly 19% from July’s peak around $73. Price now sits close to the important $60 support level, an area that previously acted as major resistance before turning into a reliable support zone throughout 2026. Buyers have defended that level several times since May, showing that demand remains present despite weakening momentum.
However, repeated support tests often reduce buyer strength over time. Another unsuccessful defense could encourage additional selling and increase downside pressure. A decisive weekly close below $60 would likely confirm growing bearish momentum and shift attention toward the next important support area between $48 and $54.
Despite recent weakness, Hyperliquid remains one of the strongest-performing crypto projects during 2026. Previous rallies demonstrated that investors quickly return whenever market sentiment improves. Stronger perpetual trading volume, higher revenue, larger buybacks, and renewed institutional demand could eventually restore bullish momentum.