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Hyperliquid Drops 17% After Record High, But Fundamentals Stay Strong

On-chain activity, protocol revenue, and HYPE buybacks keep climbing, while inflows into HYPE products also continue. That stands in contrast to the broader weakness in DeFi and the crypto market.

By Mike Hesp
• 2 min read
Hyperliquid Drops 17% After Record High, But Fundamentals Stay Strong

Key Takeaways

  • Hyperliquid fell 17% from its record high, partly because of weakness in the broader crypto market.
  • Network activity stayed strong: active addresses rose 17.4% to 68,600, and the number of holders grew by about 3% in June.
  • Protocol revenue, token buybacks, and institutional inflows stayed positive, pointing to continued demand for HYPE.

Hyperliquid (HYPE) has dropped 17% since hitting a record high, partly because of the weaker broader crypto market. Still, several on-chain and ecosystem indicators point to resilient underlying activity across the network.

User Growth and Network Activity Despite the Price Drop

Daily active addresses on HyperCore rose 17.4% to 68,600 over the past 24 hours, even as the HYPE token lost value. The number of HYPE holders also increased by 1,109 new wallets in the past week, a gain of 0.45%, even though the token price fell 12.5%. Over the month of June, the total number of holders grew by about 3% to 245,260.

These numbers show that user participation and interest in the ecosystem do not directly track the recent price moves. That stands out in a market where DeFi total value locked (TVL) is falling month by month; Hyperliquid, along with TRON, is one of the few top-10 chains actually posting TVL growth in 2026.

Capital Flows and Protocol Revenue Are Supporting the Ecosystem

Over the past 90 days, Hyperliquid has bought back $135 million worth of HYPE tokens, while $64 million (€56.4 million) worth of tokens was released to the team. That points to net buying pressure that outweighs the supply of newly unlocked tokens, which helps absorb selling pressure.

Protocol revenue rose for three straight months, from $44.85 million (€39.6 million) in April to $53.80 million (€47.4 million) in June. While that is still not a record, January came in at nearly $63.94 million (€56.4 million), it does show a recovery after a weaker stretch.

Institutional Interest and Big Traders Are Still Active

Big market players are still active despite the correction. For example, a new wallet withdrew more than 278,000 HYPE worth about $17.45 million (€15.4 million) from Coinbase Prime, while another whale pulled nearly 97,000 HYPE worth $6 million (€5.3 million) from BitGo after a month of silence.

Institutional interest in HYPE products also remains positive. While spot Bitcoin and Ethereum ETFs recently saw outflows, HYPE-related investment products pulled in $27.9 million (€24.6 million) in inflows last week, the strongest weekly inflow since late May.

That strong demand fits into a broader re-rating of profitable DeFi protocols, with analysts also pointing to attractive multiples across the sector. That lines up with the broader debate around valuations of top protocols and possible regulation that could further support onchain finance.

These signals point to solid demand for HYPE, despite the price pressure. The next few weeks will show whether these fundamentals can push the token back to record highs.

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