Hyperliquid Just Fell 17% From Its All-Time High. Here's Why I'm Not Buying the Dip.
Key PointsHyperliquid's skyrocketing price is the result of its market-leading position in perpetual futures trading.
Hyperliquid (HYPE -0.84%) reached an all-time high of $97.98 on September 23, but fell by 17% to $81 shortly after. This leaves crypto investors questioning whether to invest in the dip or explore other opportunities. Hyperliquid has been a standout cryptocurrency, with its HYPE token up 235% year-to-date and 2,440% since its November 2024 launch.
It now accounts for 60% or more of all perpetual futures trading on decentralized exchanges, and investment firms are racing to launch new spot ETFs for Hyperliquid. The token's price has also been supported by a daily buyback mechanism, similar to a stock buyback program. However, Hyperliquid's momentum is slowing, with a 19% gain over the past 90 days, trailing behind Bitcoin's 28% rise in the same period.
The cooling momentum can be attributed to the CFTC's approval of perpetual futures trading in the U.S., intensifying competition for Hyperliquid. Additionally, the Clarity Act's failure in the Senate has called into question the administration's recent pro-crypto stance, especially ahead of midterm elections. Regulatory concerns over Hyperliquid's offshore status have also raised questions about its future.
Until these legal and regulatory issues are resolved, the author is choosing to look elsewhere for investment opportunities in 2026.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
