HYPE Token Dips Despite 40% Monthly Gains — Market Sentiment Shifts
HYPE token experienced a sharp 6% drop over the past 24 hours, making it the worst performer among the top 100 cryptocurrencies by trading volume on Thursday, according to CoinGecko. HYPE briefly dipped below $36, its lowest price in 10 days, and a significant retreat from its all-time high of $45.59, set just three days prior.
Despite the pullback, HYPE remains up over 40% in the past 30 days, largely driven by its dominant position in perpetual futures trading—a segment of crypto markets known for high leverage. The token launched in December 2024 and has since attracted notable institutional interest.
Post-Announcement Sell-Off Follows Corporate Accumulation
The recent price correction came amid low overall market activity due to the Juneteenth U.S. holiday, during which most major altcoins remained flat or slightly down. The global crypto market cap fell 2.5%, with XRP and Solana also posting mild losses.
Rajiv Sawhney, head of international portfolio management at Wave Digital Assets International, linked the sell-off to a typical “buy the news, sell the pop” pattern following recent announcements. U.S.-based Eyenovia, which is listed on NASDAQ, recently acquired over 1 million HYPE tokens using proceeds from a $50 million private equity raise. Similarly, Singapore’s Lion Group Holdings announced a $600 million credit facility aimed at building a crypto reserve that includes HYPE.
“These corporate buys attract fast speculative capital,” said Sawhney, noting that short-term investors often exit after the initial hype, leading to retracements.
Slowing Platform Activity Weakens Buy-and-Burn Support
According to CEX.IO’s lead analyst Illia Otychenko, trading volume has fallen by 50% since mid-May, diminishing the impact of HYPE’s buy-and-burn mechanism, which automatically purchases tokens using user trading fees. “As platform activity slows, this mechanism’s price support weakens, removing a key bullish force,” Otychenko explained.
HYPE’s recent decline reflects a cooling phase following its meteoric rise—driven by fundamentals, hype, and institutional moves—but with market momentum softening, the token may face further price consolidation in the short term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
