Hyperliquid’s performance in the third quarter has taken a hit as its fundamental metrics slide to lows last seen in April. In early July, the decentralized exchange achieved a surge in perpetual contract volume, hitting $84 billion. Less than three weeks later, this volume halved to $43 billion, indicating a rapid decline in trading activity.
Total Open Interest (OI), reflecting the value tied up in open contracts, also fell from $75 billion to $65 billion during July, marking a $10 billion reduction. This drop underlines weakening market engagement.
Revenue has been hit hardest. Weekly earnings fell threefold from an average of $23 million to just $7.5 million in the latest week, signaling a sharp downturn for Hyperliquid’s cash flow.
Buyback Activity and Institutional Interest
Buyback volumes of HYPE tokens correspond with the revenue trend. In June, buybacks surged four times to over 44,000 tokens daily, helping push HYPE’s price to an all-time high of $76.90 on Binance. Since then, buybacks have fallen by half to about 22,000 tokens daily, reflecting reduced capital reinvestment in the token.
The situation was compounded by a lack of institutional demand. U.S. spot HYPE ETF products have seen minimal inflows since July 9, with only a brief exception on July 15, demonstrating waning interest from institutional investors.
Price Performance Under Pressure
The combination of falling fundamentals and decreasing buybacks contributed to a 19% price drop in HYPE from a July peak of $73 to around $58. This price hovers near a historical support level close to $60, tested multiple times since May. Failure to hold this level after forthcoming tests may accelerate downward momentum.
If the $60 level breaks decisively, the next support area lies between $48 and $54. Despite recent weakness, Hyperliquid outperformed many tokens throughout 2026. Its future rebound depends on shifts in market risk appetite.
This article presents information for educational purposes and does not constitute financial advice.
