According to Woofun AI, Hyperliquid (HYPE) recently experienced a significant correction in valuation. Although it was once regarded as the absolute king in the decentralized trading field, current market sentiment is shifting from fanatical to cautious. This shift was not due to technical failure, but was driven by macro-regulatory uncertainty and a worsening competitive landscape, leading investors to re-evaluate the value of their long-term holdings.
Looking back at its highlights, Hyperliquid's market position seemed unshakable. On September 23, the HYPE token price hit an all-time high of $97.98, and the market generally expects it to break through the psychological barrier of $100 by the end of the third quarter.
However, the actual trend was quite the opposite, and the stock price then fell 17% and is currently stable around $81. Despite this, its long-term performance is impressive: up 235% during the year, with a cumulative increase of 2,440% since its launch in November 2024.
More importantly, Hyperliquid has a monopoly of over 60% of perpetual contract trading volume on decentralized exchanges. This overwhelming market share has even attracted the attention of President Trump, who is actively pushing the Singapore-based company to set up a business establishment in the US in an attempt to integrate it into the US crypto ecosystem.
However, signs of slowing down are clearly visible. According to data compiled by Woofun AI, HYPE has only risen 19% in the past 90 days, which is significantly weaker than Bitcoin's 28% increase over the same period. Specifically, HYPE fell 0.47% on the same day, with a change of -0.38 dollars, and the current price is fixed at $81.18. Its market value is approximately $18 billion (based on listed shares only), and the price range for the day fluctuated between $79.25 and $82.69. The price range for the past 52 weeks was $20.52 to $97.96, and the trading volume reached 765 million dollars. These data show that despite a large base, marginal growth momentum is rapidly declining, and high risk has not brought matching high returns.
The underlying reason lies in the double squeeze of regulation and competition. The US Commodity Futures Trading Commission (CFTC) decided to allow perpetual contract trading in the US. This move directly introduced traditional financial giants such as Kalshi, Coinbase Global (COIN.US), and Robinhood Markets (HOOD.US) as competitors, completely breaking Hyperliquid's monopoly expectations.
Meanwhile, the Clarity Act failed to pass in the US Senate. Coupled with the upcoming election, the market doubts the sustainability of the Trump administration's pro-crypto policies. Due to concerns about the state of offshore operations and the uncertainty of regulatory approvals, the author decided to wait and see until 2026 and refuse to scour the bottom until HYPE's legal and regulatory risks are lifted.