HYPE spot ETFs returned to net inflows in the week ending August 7, adding $2.84 million after three straight weeks of redemptions totaling $30.6 million. The reversal followed a cautious stretch flagged by JPMorgan, with cumulative net inflows now standing at $280.8 million. The recovery matched a broader return of capital across crypto ETFs, with combined weekly inflows across major products approaching $1.1 billion in the week ending August 7. Bitcoin ETFs led with $853.5 million in inflows, reversing a $61.5 million outflow the prior week, while Ethereum funds added $244.9 million, their strongest week since mid-April. In contrast, smaller altcoin products cooled significantly, with Solana ETFs drawing just $145,000 down from $7.2 million two weeks earlier.
HYPE price has corrected to $54.65, trading near the $54.6 level on Sunday, August 9, following a recent rejection at $56.16 that resulted in another pullback. The token fell from the low $60s in late July toward $55 by early August, with HYPE's circulating turnover falling to a weekly average of 2.9%, indicating reduced token availability as holders maintain their positions rather than rotating supply back into the market. The token's bollinger bands have widened on the daily chart, indicating increased market volatility, while the Stochastic RSI remains in overbought territory at $86.21, increasing the likelihood of further short-term bearish movement. However, trading volume has flattened at around $230 million after a week of steady gains, suggesting many traders are playing cautiously as they wait for potential rejection at around $54 before joining the trend. HyperLabs unlocked another 433,025 HYPE worth $23.46 million, with the tokens being gradually deposited into exchanges including Flowdesk and OKX, raising concerns about potential selling pressure.
Despite the selling pressure from HyperLabs' token unlock, whale buying has emerged as a crucial support factor. According to Onchain Lens, a newly created wallet withdrew 197.36k HYPE worth $10.69 million from Coinbase, representing significant whale accumulation. However, market sentiment remains bearish with sellers dominating activity. Looking at Hyperliquid Spot Buy Sell Volume, the market delta has remained negative for three consecutive days, with sell volume rising to 297k compared to 229k in buy volume, resulting in a negative delta of -68k. The Relative Strength Index (RSI) has remained within the bearish zone for three weeks at 42, indicating sellers are enjoying significant control of the market. HYPE sits below the 50-SMA, signaling strong short-term downside pressure, with the combination of indicators reflecting bearish pressure and signaling the likelihood of extended market weakness. Spot netflow reached approximately $1.24 million at press time, confirming inflows exceeded outflows during the latest recorded period, while positive spot netflows reached $793.92K, marking a change from previous withdrawal-heavy activity.
The latest price movement follows Hyperliquid's release of $169 million in Q2 revenue, with $141 million allocated to HYPE buybacks. The protocol also passed $1 billion in cumulative protocol revenue during the quarter, demonstrating strong operational performance. HIP-3 real-world asset perpetual contracts generated $213 billion in trading volume and represented 32.2% of activity in the category covered by the report. RWA trading contributed 6.6% of total quarterly revenue, strengthening the view that Hyperliquid is expanding beyond crypto perpetual futures into tokenized commodities, equities and other traditional-market products. However, HYPE's fully diluted valuation stood near $54 billion compared with a circulating market capitalization of approximately $12.6 billion, creating a significant gap that remains a longer-term risk. Hyperliquid routes about 97% of trading fees into its Assistance Fund, which buys the token on the open market and retires it, taking roughly 44.5 million HYPE out of the total supply so far.
Hyperliquid's perpetual futures volume over the past 30 days ran to nearly $178 billion, with open interest climbing to just above $11 billion on July 13, the platform's highest in 2026. The platform now settles roughly 9% of all open perp positions worldwide, up from under 7% in late May. However, gross protocol revenue has fallen four quarters running, dropping from roughly $357 million in Q3 2025 to about $202 million in Q2 2026, representing a 43% decline from the peak. Real-world asset perps, including contracts on crude oil, gold, Nvidia, Tesla, and pre-IPO names like SpaceX, hit a record $3.6 billion in open interest and overtook bitcoin as the platform's largest market. Trade.xyz accounts for more than 90% of all HIP-3 open interest, creating concentration risk as the platform depends on a single deployer's oracle choices and risk management.
