HYPE price remained on edge on Saturday morning as the recent crypto market rally ran out of steam. It also stalled after the network unlocked tokens worth over $8 billion. Hyperliquid token was trading at $36, much lower than the all-time high of $60.
Key Hyperliquid Metrics are Falling
HYPE price has slipped in the past few months as closely-watched metrics on Hyperliquid decline.
DeFi Llama data shows that the total value locked (TVL) in Hyperliquid Layer-1 dropped to $3.9 billion, down from the all-time high of $7.9 billion. It has also dropped in HYPE terms, moving from 166 million in October to 115 million today.
This decline, which has mirrored that of other layer-1 and layer-2 networks, is a sign that Hyperliquid’s network growth is losing steam among users.
More data shows that the amount of stablecoins in Hyperliquid has plunged recently, with most of the decline being Felix feUSD, Erhena USDe, and M by MO. The USDX supply in Hyperliquid L1 has dropped by 10% in the last 30 days.
Meanwhile, activity in the perpetual futures market, where it dominated recently has also worsened in the past few months as competition from companies like Lighter and Aster has jumped.
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Lighter, a company that recently raised $68 million at a $1.8 billion valuation, has become the biggest player in the perpetual DEX industry. It handled close to $300 billion in volume in the last 30 days as Hyperliquid processed trades worth $256 billion.
Aster, which Changpeng Zhao (CZ) backs, handled over $256 billion in volume in this period. edgeX, another fast-growing network, handled over $174 billion in volume.
These numbers mean that Hyperliquid is not the only game in town, a move that is affecting its revenue and fees. Hyperliquid’s fees declined to $98 million in November from $117 million in the previous month.
On the positive side, the network continues to burn and buy back tokens worth millions of dollars a month. HYPE has burned 506k tokens over time, while the network has repurchased tokens worth $78 million in the last 30 days. On top of that, 41% of the HYPE tokens are staked with an APR of 2.19%.
HYPE Price Technical Analysis
The daily timeframe chart shows that the Hyperliquid token price has more downside to go. It has remained below the 50-day and 100-day moving averages. Also, the token has moved below the Supertrend indicator.
HYPE price has formed a head-and-shoulders pattern, which often leads to more downside. If this happens, the token will likely drop to $28, the 61.8% Fibonacci Retracement level. This target is about 20% below the current level.
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