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HYPE traded sideways this week as broader crypto market sentiment remained weak. The token held relatively steady even as Hyperliquid ETFs attracted record inflows, highlighting continued institutional interest. Even so, technical indicators suggest the recent rally may be losing momentum.
HYPE Price Wavers as Hyperliquid ETF Inflows Surges
Data shows that demand for Hyperliquid ETFs soared and hit a record high this week. According to SoSoValue, inflows soared by over $111 million this week, much higher than the previous week’s $28 million. These funds have had a cumulative inflows of $293 million and now hold $323 million in assets, which is equivalent to 2.28% of its market capitalization.
Grayscale’s HYPG ETF now holds $125 million in assets, while Bitwise’s BHYP and 21Shares’ THYP have $124.5 million and $73.4 million. These are encouraging numbers since the funds charge 0.29%, 0.34%, and 0.30% in annual fees, higher than other crypto ETFs.
In contrast, spot Bitcoin ETFs shed over $1.79 billion in assets this week, bringing the monthly inflow to $4.06 billion. They have now lost $6.4 billion in assets in the last two consecutive months.
Spot Ethereum ETFs have lost $471 million in assets this month, bringing the net outflow for the year to over $1.3 billion. This makes HYPE ETFs the most improved in the industry.
Hyperliquid Growth is Continuing
There are several reasons why HYPE ETFs are doing well this year. First, data shows that the network is doing well in terms of perpetual volume. It had $8.85 bilion in volume in the last 24 hours and $51.7 billion in the last seven days. The 30-day volume jumped to $252 billion, a major figure considering we are in a prolonged crypto winter.
Indeed, other top players in the crypto industry have experienced weak volume growth that has affected their revenues. For example, Uniswap, the biggest DEX network in the industry, handled $112 billion this quarter, the weakest figure since the second quarter of 2023. PancakeSwap’s volume was $68 billion this quarter, down from the $242 billion in the fourth quarter of last year.
More Hyperliquid metrics show that the network is doing relatively well. For example, the volume of stablecoins in the network has risen to $6.4 billion this month from the year-to-date low of $4.73 billion. This is an important metric because the stablecoin industry is one of the most important ones.
Just recently, Hyperliquid made a major strategic deal with Circle. This deal has made USDC the platform’s primary aligned quote asset, with Coinbase becoming the official treasury deployer. In this case, Hyperliquid will retain up to 90% of the reserve USDC yield, boosting its buybacks and token burns.
Hyperliquid’s layer-1 network has made $2.13 million in fees this quarter, higher than the $1.6 million it made in Q1. The broader ecosystem has made over $923 million in fees this year, making it one of the top cash generators in the crypto industry.
HYPE Price Technical Analysis
Despite the bullish fundamentals, there is a risk that the HYPE price will drop in the coming months. For one, it has formed a double-top pattern at $75.63 and a neckline at $52.60, its lowest level on June 10. A double top signals that bulls are afraid to place bullish trades above the upper point. It normally leads to a reversal.
At the same time, the token is attempting to drop below the 25-day Exponential Moving Average (EMA). Therefore, these technicals suggest that the coin may drop further in the near term as investors book profits. If this happens, the next key level to watch will be the neckline of $52.60. Still, in the long-term, HYPE will likely surge, with Multicoin predicting it will hit $300.
