Hyperliquid’s HYPE token fell to a seven-month low as the market reacted to a sharp drop in the protocol’s dominance and renewed concern over recent token movements.
According to data from BeInCrypto, the token fell more than 4% in the last 24 hours to $29.24, its weakest level since May.
Data from CoinGlass showed that the drop triggered more than $11 million in liquidations, adding pressure on a market that was already becoming cautious.
The change marks a marked shift for a protocol that once controlled the on-chain perpetual securities market. At the beginning of the year, Hyperliquid dominated the decentralized perpetual stock market with near-total authority. However, that advantage has faded.
DeFiLlama data reveals a staggering erosion of its dominance, with the protocol’s share of the perpetual market falling from a peak of nearly 70% to less than 20% at the time of this publication.
This may be related to the emergence of more aggressive rivals, such as Aster and Lighter, which have managed to divert volume through superior incentive programs.
As a result, investors are rapidly repricing HYPE and no longer see it as the inevitable winner of the sector, but rather as a legacy that bleeds users.
At the same time, internal token movements have shaken confidence.
Blockchain analytics firm Lookonchain reported last month that team-controlled wallets released 2.6 million HYPE, valued at approximately $89 million.
https://twitter.com/lookonchain/status/1994986803242439107?s=46
While the team re-staked approximately 1.08 million tokens, the market became obsessed with the exits.
A total of 900,869 HYPE remained liquid in the wallet, and another 609,108 HYPE, worth approximately $20.9 million, were moved to Flowdesk, a prominent market maker. The project also sold an additional 1,200 tokens for around $41,193 in USDC.
These events have taken a psychological toll on the community.
As a result, HYPE has lost almost 30% of its value in the last 30 days, ranking as the worst-performing asset among the top 20 digital currencies by market capitalization.
With this in mind, cryptocurrency traders have become significantly bearish on the token. Cryptocurrency trader Duo Nine has suggested that the value of the token could fall as low as $10.
“Mentally prepare for such a scenario if you want to survive what is coming,” the analyst said.
Read original story Hyperliquid Token Hits 7-Month Low as Market Share Collapses by Oluwapelumi Adejumo on beincrypto.com