Hyperliquid’s HYPE Token Plummets as Capital Flees to New DEX Competitors
HYPE's bleeding out—traders are chasing the next shiny object while Hyperliquid's native token tanks hard.
Rotation Reality Check
Fresh DEX tokens are sucking all the oxygen out of the room. No surprise—crypto's attention span rivals a goldfish on espresso. When new platforms drop, capital doesn't just move—it stampedes.
Market Dynamics Exposed
Liquidity follows hype, not the other way around. Retail flocks to whatever promises moon shots this week, leaving previous darlings in the dust. It's the circle of DeFi life—brutal, predictable, and utterly relentless.
Just another Tuesday in crypto—where fundamentals take a backseat to whatever's pumping on Twitter this hour.
Why is HYPE dropping?
The drop in Hyperliquid’s price is due to investors booking profit, Peter Chung, head of research at Presto Research, told Decrypt.
Otychenko echoed Chung’s outlook by stating that there’s “a bit of capital rotation” as whales sell their Hyperliquid tokens.
Among them are Arthur Hayes, founder of crypto exchange BitMEX, who sold 96,600 HYPE on Sunday, worth some $5.1 million.
In addition, roughly 237.8 million HYPE are set to unlock linearly starting November 29, Hayes’ family fund Maelstorm highlighted in a Monday tweet. At the current price of $49, per CoinGecko data, the notional value of the unlock will be roughly $11 billion.
https://t.co/1BaqtQnxk6
— Maelstrom (@MaelstromFund) September 22, 2025
The buybacks from Hyperliquid and the buying pressure from Digital Asset Treasury companies are “a drop in the bucket compared against impending HYPE unlocks,” the Maelstrom article added, citing a potential supply overhang of $410 million per month.
With heightened competition from new decentralized exchanges now palpable, the main question, according to Otychenko, is whether the newly surging tokens can keep the market's attention once their initial hype cools down.
“Right now, risks are high,” he added. “Aster in particular has over 90% of supply concentrated in just a few wallets, making it prone to sharp swings or manipulation.”
Aster, a Binance Smart Chain-based DEX, recently received an endorsement from Binance co-founder CZ, who tweeted “Good start. Keep building,” at the project last Wednesday.
