Hyperliquid Dips 2.77% Amid Bitcoin Correlation and High Trading Fees

Hyperliquid [HYPE] experienced a slight dip of 2.77% over the past 24 hours, trading at $33. However, this pullback may be temporary as rising liquidity on Hyperliquid could fuel a fresh upward movement. The performance of HYPE is closely tied to Bitcoin’s market strength, with both assets mirroring each other’s highs and lows in recent weeks. This correlation is not coincidental but rather a result of Hyperliquid’s platform, which allows Bitcoin whales to open long trades on the asset.

The daily chart reflects this correlation, showing both assets moving in tandem—making new highs and lows simultaneously. This suggests that a Bitcoin rally would likely result in HYPE following the same path. In fact, just in the past 24 hours, a single whale opened a $250 million BTC long. If this trend continues and liquidity keeps pouring into Hyperliquid, HYPE could ride that wave higher.

While HYPE stands to benefit from added liquidity and its correlation with Bitcoin, on-chain activity also suggests the asset remains bullish. In the past 24 hours alone, Hyperliquid generated the highest Trading Fees among all protocols, currently at $3.1 million, surpassing Ethereum [ETH], Tron [TRX], Solana [SOL], and Bitcoin [BTC]. The annualized fee generated by Hyperliquid stood at $777 million, a 52% increase over the past 30 days. Such consistently high trading fees imply that more users are actively using the platform.

Meanwhile, Total Value Locked jumped from $289.46 million at the start of May to $505.41 million. That $215.95 million increase suggests more users are depositing HYPE into the protocol, reinforcing bullish conviction. While bullish momentum is building, an analysis of daily transactions and active users showed a continued decline. At the time of writing, Daily Transactions declined to 518 million, while Daily Active Perpetual Users remained at 24,200. This is a positive sign, considering that over the past few days, HYPE dropped from an all-time high to $33. It suggests that selling pressure has cooled significantly and buying activity is likely to resume soon. The dip in DEX volume to $415 million, paired with falling transactional activity, hinted that most addresses were holding—not selling.

In summary, the fate of HYPE appears to be closely tied to Bitcoin’s performance, with rising liquidity on Hyperliquid potentially fueling a fresh upward movement. The platform’s ability to attract Bitcoin whales and the consistently high trading fees suggest a bullish outlook for HYPE. However, the decline in daily transactions and active users warrants attention, as it may indicate a temporary cooling of market interest. Overall, the on-chain activity and market dynamics suggest that HYPE has the potential to ride the wave of liquidity and Bitcoin’s performance to new highs.