Hyperliquid Crypto Hits 2-Week High Amid Institutional ETF Support

Arkham noted that Hyperliquid ETFs did not sell any of their HYPE token holdings last week. Instead, they held on to previously acquired coins and even added about $2.8 million worth of Hyperliquid crypto to their holdings.

Healthy institutional demand signals that institutions remain optimistic about Hyperliquid crypto’s short-term and long-term prospects. Despite these observations, spot flows remained weak, indicating that the rest of the market is yet to catch up.

Meanwhile, derivatives activity around the HYPE token registered a significant surge. For example, volume was up by 63.8% in the last 24 hours, but it remained near multi-month lows. This suggests that it was not yet large enough to trigger liquidation concerns.

Solid institutional positioning has been the key driving force behind Hyperliquid crypto’s bullish momentum. If this trend continues, then the HYPE price may maintain the bullish momentum observed in the first half of August.

Will HYPE Price Defy Declining Network Activity?

The fact that Hyperliquid crypto is still one of the biggest DEXes was a major driving factor behind institutional confidence. So, what happens when market factors chip away at that confidence?

The crypto market has no doubt been stuck in consolidation over the last few weeks. As a result, there was elevated uncertainty about whether prices would bounce back or capitulate.

As a result, on-chain activity and trading volumes have taken a hit over the last few weeks. A stark contrast to the previously exciting market phases that drove robust volumes into the Hyperliquid ecosystem.

According to DeFiLlama, weekly address activity dipped to the lowest levels observed since March 2025. The same can be said for the DEX volumes.

For example, the latter registered $735 million in volumes between 10 and 16 August. The last time Hyperliquid DEX volumes were that low was just after mid-March 2025.

The declining DEX volumes translate to lower organic demand for Hyperliquid crypto. However, the fact that institutional demand remained elevated was one of the key factors propping up demand. Nevertheless, declining activity remains a risk factor that could hammer down on the HYPE token price in the short term.

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