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Hyperliquid Revenue Drops 3x as HYPE Tests $60 Support

Hyperliquid Revenue Falls 3x as Trading Activity Slows – HYPE Price Drops 19% and Tests $60 Support

Key Takeaways

• Hyperliquid’s perpetual trading volume fell from $84B in early July to $43B within three weeks.
• Total open interest declined by $10B in July, dropping from $75B to $65B.
• Weekly revenue decreased threefold from an average of $23M to $7.5M.
• HYPE buybacks were reduced by half from mid-June levels, while spot ETF demand has remained largely absent since July 9.
• The HYPE token fell 19% from $73 to around $58 and is testing the $60 price level as support.

Perpetual Volume and Open Interest Decline in July

Hyperliquid entered the third quarter with weakening trading activity. After recording $84B in perpetual trading volume in early July, activity declined to $43B within less than three weeks. This represents a twofold drop in volume over a short period.

At the same time, total open interest, which reflects the capital tied up in open derivative contracts, decreased from $75B to $65B. The $10B reduction in open interest during July indicates that capital inflows into active positions have slowed alongside trading volume.

For users of decentralized derivatives platforms, both metrics are central indicators of market participation. Lower volume and declining open interest typically signal reduced activity and fewer open positions across the platform.

Revenue Contracts Threefold Amid Slower Activity

The slowdown in trading has been accompanied by a sharp drop in revenue. Hyperliquid’s weekly revenue declined from an average of $23M to $7.5M, representing a threefold decrease.

Data referenced from DeFiLlama shows that falling revenue and reduced perpetual volume coincided with a weakening trend in the HYPE token price. Revenue on decentralized exchanges is closely tied to trading activity, as fees generated from transactions contribute directly to platform income.

The contraction in revenue reflects the reduced trading flows observed since early July and highlights how sensitive exchange earnings are to short term changes in user participation.

Buyback Activity Slows After June Increase

In June, Hyperliquid increased HYPE token buybacks significantly. Daily buybacks rose fourfold, from an average of 14,000 tokens to more than 44,000. During this period, positive ecosystem developments and ETF flows coincided with a price rally that pushed HYPE to a record high of $76.9 on Binance.

However, buyback activity has since slowed. Current daily buybacks are around 22,000 HYPE, marking a reduction of roughly half compared with mid-June levels. According to data cited from Coinglass, this decline in buybacks occurred as broader fundamentals weakened.

Buybacks can affect token supply dynamics by reducing the amount of tokens circulating in the market. A lower pace of buybacks reduces that effect compared with prior levels.

Spot ETF Demand Remains Limited

Demand for U.S. spot HYPE exchange traded funds has also shown limited momentum in recent days. Since July 9, the products have recorded either zero demand or outflows, with July 15 being the only exception.

Data referenced from SoSo Value indicates that institutional flows through these products have not provided additional support during the recent slowdown. Combined with declining platform activity and reduced buybacks, the absence of sustained ETF inflows has coincided with weaker price performance.

The report also references a $30M sell off by a16z as part of the broader context surrounding HYPE’s recent price action.

HYPE Price Drops 19% and Tests Key Level

At the time referenced in the source material, HYPE was trading at approximately $58. This marks a 19% decline from its July high of $73.

The $60 price level is significant because it previously served as a price peak last year and acted as a key support level in 2026. The token has tested this level three times since May. Market data from TradingView indicates that a decisive weekly close below this level would reinforce the recent weakening momentum.

If the decline extends further, the $48 to $54 range is identified in the source as the next potential support zone.

Despite the recent pullback, Hyperliquid has been described as an outlier in 2026 in terms of investor returns compared with several other tokens. However, the current data reflects a period of cooling activity after earlier highs.

Our Assessment

Hyperliquid’s recent performance shows a clear alignment between trading activity, revenue, buybacks, ETF flows, and token price. Perpetual trading volume has fallen from $84B to $43B, open interest has declined by $10B, and weekly revenue has dropped from $23M to $7.5M. At the same time, daily HYPE buybacks have been reduced by half from mid-June levels, while spot ETF demand has been largely absent since July 9.

These measurable changes have coincided with a 19% decline in the HYPE token price from $73 to around $58, bringing it back to the $60 level that previously functioned as a key support. The data presented reflects a period of reduced activity and lower capital inflows on the platform compared with earlier in the quarter.