Hyperliquid recorded $169 million in protocol revenue in the second quarter, with $141 million of it allocated directly to buy back HYPE tokens. This purchase fund pushed the token price up to $56.80, marking an 11% rebound from the weekly low that had touched $51. This quarterly report also wraps up a record operational achievement for the protocol, which has now surpassed the $1 billion mark in cumulative revenue during the second quarter.
Behind this high level of activity, real-world asset (RWA) perpetual contracts emerged as the primary volume driver. During the second quarter, HIP-3 standard contracts recorded $213 billion in trading volume. This figure accounted for 32.2% of all transaction activity and contributed 6.6% of the total protocol revenue. RWA dominance peaked during the week of July 13-19, when this instrument claimed the top spot as the largest category in the Hyperliquid ecosystem for the first time, commanding 52% of the total weekly volume. During that one-week span, shares of chipmaker SK Hynix emerged as the most traded asset by market participants.
Valuation Gap and Wall Street Warnings
Despite its price recently rebounding thanks to the buyback action, HYPE’s current position remains stuck 26% below its all-time high of $76.70 in June. The main obstacle comes from the difference in supply structure weighing on the price: HYPE’s fully diluted valuation is estimated to reach $54 billion, while the circulating market capitalization has only touched $12.6 billion. This wide gap exists because the majority of the token supply has indeed not yet been released to the public.
Additional selling pressure is coming from the institutional side. Bank JPMorgan reported that inflows into the HYPE ETF have started to stall, reflected by a total outflow of $29.8 million over 12 consecutive trading sessions leading up to August 3. Despite these warnings, second-tier institutional support is slowly starting to come in. The state of Wyoming revealed their indirect exposure to this token through a second-quarter 13F financial filing, signaling remaining ownership.
Technical Signals at a Crossroads
From the price movement perspective, technical indicators require traders to start being alert. The 4-hour RSI currently points to the 60.08 level, which has not yet broken into the overbought territory. However, a warning comes from the Stochastic RSI indicator, which is already sitting at 95.80/88.35 - entering deep into the overbought zone, which has historically been followed by a consolidation phase. HYPE’s performance is also not entirely strong; net over the past seven days, the token has only maintained a 3.7% gain.
The psychological support level is now the key determinant of HYPE’s price direction in the near term. Trader Altcoin Sherpa sets $50 as the key level; if this support is breached, the HYPE price could slide down to the mid-$40 range. While the project’s long-term fundamentals are still considered constructive, the hanging supply overhang and the series of institutional outflows today demand a recalculation before rushing into the market. Reported from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
