While the broader crypto market has been battling headwinds, one digital asset has quietly been defying the odds.
Luke Nolan, Senior Research Associate at CoinShares said:
“Crypto has had very little help from flows recently. US spot bitcoin ETFs have now seen eight consecutive weeks of outflows, the longest stretch since launch, with more than US$6.5bn leaving since May. Ethereum ETFs have also weakened alongside them, while Strategy, the Saylor-led bitcoin treasury company, sold 3,588 BTC this week to fund preferred stock distributions. Against these tough market conditions, Hyperliquid (HYPE) continues to trade near its all-time high.
HYPE ETFs have seen inflows every week since launching in May, including roughly US$161m in June, taking total AUM across the three US-based products to around US$336m. European products also sit above US$55m. These numbers are still small in absolute terms, but on a market-cap-adjusted basis, HYPE has been one of the strongest crypto ETF launches to date. The relative strength versus the broader crypto market remains clear.
In our view, this is a strong signal that Hyperliquid’s tokenomics are resonating with investors. Using 99% of platform fees to systematically buy back HYPE creates a direct link between protocol activity and token demand, giving the asset a value-accrual mechanism that stands out in the current market.”
