Hyperliquid has established a solid position in the cryptocurrency market as of 2025, especially when looking at the strong growth in trading volume over the past few months. However, recent data indicates a slowdown in Hyperliquid's activity.
Although the DeFi market has recently shown signs of recovery, Hyperliquid's DEX trading volume has decreased, especially compared to the peaks reached in May and June.
According to data from DeFiLlama, Hyperliquid's DEX trading volume surpassed $714 million in May and reached $735 million just before mid-June. However, by the end of June, this figure had dropped to only $134.8 million.
In the past two days, the average trading volume of DEX has been $270 million, showing a significant decrease compared to the previous peak, down to about one-third.
This is becoming increasingly notable as some older DEXs like PancakeSwap are recording an increase in DeFi activity, indicating a more intense competition in this field.
The trading volume of Hyperliquid's token has increased despite the decline in DEX.
The trading volume of Hyperliquid's token has surged in 2025. Specifically, this volume peaked at over $1.5 billion in December 2024 and continued to rise to over $1.93 billion, which means it had increased by more than $430 million compared to the end of the previous year.
The trading volume of this token reflects the level of activity of the DEX network, and it has clearly seen a significant increase in the overall context since December. However, it is noteworthy that the DEX trading volume is gradually decreasing, especially in recent times, and the reasons for this trend are quite reasonable.
The reality shows that trading volume on Hyperliquid is primarily driven by demand in the derivatives segment, especially in the context of the market having a large interest in leveraged instruments. This is particularly true for large investors (whales), who actively participate in leveraged trades. However, the strong price volatility in recent weeks has led to significant liquidations, causing some whales like James Wynn to incur large losses.
As a result, the demand for leveraged products has been affected, causing Hyperliquid's DEX trading volume to decline. At the same time, the sudden increase in activity on traditional DEXs like PancakeSwap also reflects a strong spot demand in the DeFi space. This could be a sign that investors are gradually shifting towards a long-term HODLing trend rather than short-term speculation.
Despite positive developments, Hyperliquid still only accounts for a very small share of the DeFi market, estimated at only about 0.1% of the total market. At the same time, this platform currently ranks 31st among DEXs by token volume. This shows that, despite impressive growth in trading volume, Hyperliquid still faces many challenges in expanding its market share compared to larger competitors in the DeFi space.
Why does HYPE's price risk a deep decline?
HYPE token had an impressive second quarter of 2025, with a growth of up to 390% from the lowest to the highest price in the quarter. This strong increase was accompanied by a significant rise in token trading volume, reinforcing confidence in the strength of the uptrend. However, some signs indicate that this growth may be gradually exhausting.
Since mid-June, HYPE speculators have begun to show signs of fatigue. This is reflected in limited price increases and a declining RSI index, indicating that the market may have entered an overbought phase and could soon face a correction.
Nevertheless, the MFI index of HYPE has recorded a strong increase over the past 5 days, indicating that there is still a significant flow of capital continuing to pour into the token. This may reflect expectations of a price recovery or the continuation of an upward trend.
One of the reasons HYPE's price may face a retracement is the profit-taking momentum from profitable investors. The token's performance shows that most current holders are in profit, which will create selling pressure when these investors decide to take profits after a long period of price increase.
However, it is noteworthy that the trading volume of tokens remains high, indicating that the demand for HYPE is still strong and not solely driven by speculative factors. This demand is primarily driven by network activity, potentially stemming from increased usage of Hyperliquid's products in DeFi or derivative transactions.
While a retracement due to profit-taking may occur, the impact of network demand could help maintain the upward momentum and limit the influence of the selling side. If activity on the Hyperliquid platform remains strong and trading demand continues to rise, this may create a sustainable support factor for HYPE token.
Although there are signs indicating that HYPE may face a short-term retracement, there are also many other factors that could strongly influence the market direction in the coming months. Factors such as volatility in the DeFi space, corrections in major cryptocurrency markets, or changes in macroeconomic factors (such as monetary policy and global economic events) could completely alter the price picture of HYPE.
HYPE token may face a significant risk of retracement in the short term due to factors such as profit-taking and signs of exhaustion in the price increase. However, strong network demand and continued liquidity pumping may support the price of this token, mitigating the impact of selling pressure. The next move of the market will depend on technical and macro factors, making the situation unpredictable in July and the following months.