The perpetual contracts market has just surpassed the historic threshold of $1 trillion in open interest, reflecting massive enthusiasm for leveraged trading. Amidst this frenzy, the HYPE token shows a downward trajectory, puzzling investors. The surprising disconnect between the expanding market's performance and the plummeting asset is sparking questions.
Breaking through the symbolic threshold of $1 trillion in open interest on perpetual contracts marks a major turning point for the crypto ecosystem and Hyperliquid. This explosion reflects massive adoption of leveraged trading, with increased participation from institutional and retail traders alike. Both decentralized and centralized platforms are recording record volumes, confirming the appetite for derivative products in a context of high volatility.
This sustained growth also reflects the increasing maturity of the crypto market. Perpetuals offer superior liquidity and allow traders to take long or short positions without expiration dates, unlike traditional futures. This flexibility attracts more and more capital, particularly in a bull cycle where profit opportunities are multiplying.
Trading volumes are exploding across all major cryptocurrencies, with Bitcoin and Ethereum leading the way. This positive momentum should logically have benefited the entire ecosystem, including protocols specializing in perpetuals.
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The HYPE token, associated with the Hyperliquid protocol, is showing disappointing performance that contrasts sharply with the ambient euphoria. For several weeks now, the token’s price has been experiencing persistent selling pressure, despite the continuous increase in volumes on the platform. This divergence between protocol usage and token valuation raises legitimate questions about the project’s fundamentals.
Today again, HYPE is experiencing a 5% crash and a shower of red candles.
Several technical factors can explain this disconnect. First, the market sentiment around HYPE has clearly deteriorated, as suggested by on-chain indicators and trading volumes. Holders seem to prefer taking their profits or reducing their exposure, creating constant selling pressure. Psychological support levels have given way one after another, accentuating the bearish movement.
This condition likely stems from the fact that fears of a bear market are increasingly materializing, with Bitcoin losing all its major support levels. Given that HYPE has been the only token to resist until now, traders finally seem ready to abandon ship.
Beyond technical factors, structural elements explain HYPE’s underperformance. Competition is intensifying in the decentralized perpetuals segment, with the arrival of new protocols offering more attractive conditions. GMX, dYdX, and other major players like those in prediction markets such as Polymarket or Kalshi continue to innovate, fragmenting liquidity and trader attention.
The absence of immediate positive catalysts also weighs on sentiment. Without major announcements regarding partnerships, integrations, or significant technical improvements, investors struggle to find reasons to accumulate the token. In a crypto market where momentum and narrative are essential, HYPE seems temporarily overlooked in favor of other opportunities deemed more promising in the short term.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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