The Hyperliquid (HYPE) token fell over 6% in Thursday trading, hitting a 10-day low below $36. This decline follows just three days after the token reached its all-time high of $45.59, according to CoinGecko data.
Despite the recent drop, HYPE remains up more than 40% over the past 30 days, boosted by its dominant role in perpetual futures trading, which supports high leverage. The token launched in December 2024.
The broader cryptocurrency market experienced mild losses during the trading session, coinciding with the U.S. Juneteenth national holiday. Major altcoins like XRP and Solana saw slight declines, while the overall crypto market cap slipped by 2.5%.
Rajiv Sawhney, head of international portfolio management at Wave Digital Assets International, linked HYPE’s decline to profit-taking after significant purchases by corporate buyers. Ophthalmic tech firm Eyenovia, listed on NASDAQ, raised $50 million in a private equity deal to acquire over one million HYPE tokens recently. Singapore-based Lion Group Holdings also secured a $600 million credit facility to build a crypto reserve including Hyperliquid.
“Corporates announce crypto buying programs; the market reacts by buying the rally and then selling after the announcement,” Sawhney explained.
He added that the token’s pullback was expected given its recent peak and the market’s low volume and lack of clear direction.
Illia Otychenko, lead analyst at CEX.IO, pointed to a 50% drop in trading volume since mid-May and the platform’s buy-and-burn mechanism as factors in the price decline. This mechanism, which buys HYPE tokens when users pay trading fees, had underpinned recent gains but has weakened as platform activity slowed.
“As platform activity slows, this price-supporting mechanism has weakened, removing a major source of upward pressure,” Otychenko said.