Hyperliquid's HYPE token extended its decline on July 28, failing to reclaim recent highs as bearish momentum accelerated. The sell-off persisted even as a Grayscale and Artemis report showed the HYPE exchange-traded fund attracted stronger initial inflows relative to Bitcoin, Solana and Ripple ETFs during comparable launch phases.
Hyperliquid's HYPE token extended its decline on July 28, failing to reclaim recent highs as bearish momentum accelerated. The sell-off persisted even as a Grayscale and Artemis report showed the HYPE exchange-traded fund attracted stronger initial inflows relative to Bitcoin, Solana and Ripple ETFs during comparable launch phases.
Hyperliquid's HYPE token fell on July 28, extending a decline as selling pressure mounted after the token failed to reclaim recent highs.
"The market is increasingly focused on rising sell-side pressure rather than long-term fundamentals," according to a CoinPedia price analysis published July 28.
The pullback comes even as a July 27 report from Grayscale and data agency Artemis showed the HYPE exchange-traded fund recorded stronger initial inflows relative to Bitcoin, Solana and Ripple ETFs during comparable post-launch phases. Bitcoin's ETF showed the steadiest inflow trend since its launch, while Ethereum's ETF experienced initial net outflows before a surge pushed its relative market-cap ratio above 6 percent, the report said.
The continued sell-off in HYPE could trigger broader negative sentiment across the perpetual decentralized exchange and Layer-1 crypto sectors, potentially leading to cascading liquidations and a loss of investor confidence in the Hyperliquid ecosystem, according to the analysis.
Hyperliquid operates a perpetual trading ecosystem on its own Layer-1 blockchain, allowing users to trade crypto derivatives with leverage. The protocol has been one of the fastest-growing platforms in the sector, but the recent price action suggests traders are rotating out of riskier altcoin positions.
The Grayscale report, compiled with data through July 27, measured cumulative net inflows as a share of each asset's total market capitalization. Bitcoin's ETF showed the strongest stability and continuity among all assets tracked. Ethereum's ETF initially saw net outflows before a surge pushed its relative ratio above 6 percent. Solana and Ripple ETFs both recorded consistent positive net inflows since their launches. The HYPE ETF's inflow slope in its early stages significantly exceeded that of Bitcoin, Solana and Ripple during their respective lifecycle phases, leading in initial capital attraction, the report said.
This article is for informational purposes only and does not constitute investment advice.
