HYPE price is at risk of falling sharply after increasing by 390% in Q2.

Hyperliquid has established a solid position in the crypto 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, the DEX trading volume of Hyperliquid has fallen, especially compared to the peak levels reached in May and June.

According to data from DeFiLlama, the DEX trading volume of Hyperliquid exceeded 714 million USD in May and reached 735 million USD just before mid-June. However, by the end of June, this number had fallen to only 134.8 million USD.

The trading volume of Hyperliquid DEX | Source: DeFiLlamaIn the past two days, the average trading volume of DEX is 270 million USD, indicating a significant fall compared to the previous peak, now only about one third.

This has become even more notable as some old DEXs like PancakeSwap have recorded an increase in DeFi activity, indicating the increasingly fierce competition in this field.

The trading volume of Hyperliquid tokens increases despite the fall of DEX

The trading volume of Hyperliquid tokens surged in 2025. Specifically, this volume peaked at over 1.5 billion USD in December 2024 and continued to rise to more than 1.93 billion USD, which is an increase of over 430 million USD compared to the end of the previous year.

The trading volume of Hyperliquid tokens | Source: TokenTerminalThis token volume reflects the activity level of the DEX network, and it is clear that there has been a significant increase in the overall context from December until now. However, it is worth noting that the DEX trading volume is gradually falling, especially in recent times, and the reasons for this trend are quite reasonable.

The reality shows that the trading volume on Hyperliquid is mainly driven by demand in the derivatives segment, especially in the context of a crypto market with significant interest in leveraged instruments. This is particularly true for large investors (cá voi), 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 substantial losses.

As a result, the demand for leveraged products has been affected, causing the DEX trading volume of Hyperliquid to fall. 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 percentage of the DeFi market, estimated at only about 0.1% of the total market. At the same time, this platform is currently ranked 31st among DEXs by token volume. This indicates 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 is the price of HYPE at risk of falling deeply?

The HYPE token had an impressive Q2 2025, with a growth of up to 390% from the lowest to the highest price during the quarter. This strong increase is accompanied by a significant rise in token trading volume, reinforcing confidence in the strength of the upward trend. However, some signs are indicating that this growth may be gradually exhausting.

Since mid-June, HYPE speculators have begun to show signs of fatigue. This is reflected in the limited price increase and the declining RSI, indicating that the market may have entered an overbought phase and could soon face a correction.

However, the MFI index of HYPE has recorded a strong increase over the past 5 days, indicating that there is still a large amount of capital flowing into the token. This may reflect expectations of a price recovery or the continuation of the upward trend.

HYPE Price Chart | Source: TradingViewOne of the reasons why HYPE's price may face a fall is the profit-taking momentum from profitable investors. The performance of the token shows that most of the 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, which may stem from the increased use of Hyperliquid's products in DeFi or derivative transactions.

While a pullback may occur due to profit-taking, the impact of network demand could help sustain the upward momentum and limit the influence of sellers. If activity on the Hyperliquid platform remains strong and trading demand continues to increase, this could create a sustainable support factor for the HYPE token.

Although there are signs that HYPE may face a short-term pullback, there are also many other factors that could strongly influence the direction of the market in the coming months. Factors such as volatility in the DeFi space, adjustments in major crypto markets, or changes in macroeconomic factors like monetary policy and global economic events could completely alter the price picture of HYPE.

The HYPE token may face significant downside risk in the short term due to factors such as profit-taking and signs of exhaustion in the price uptrend. However, strong network demand and ongoing liquidity injection could support the price of this token, mitigating the impact of sell-off factors. The next move of the market will also depend on technical and macro factors, making the situation unpredictable in July and the following months.

Lilly