JPMorgan says Hyperliquid ETF inflows stall as competition mounts
HYPE rebounded toward $56.80 after Q2 revenue and buybacks, but JPMorgan said ETF demand has cooled as regulated perpetual futures venues and prediction-market rivals challenge Hyperliquid's market share.
Hyperliquid's HYPE traded near $56.80 on Aug. 7, up about 2.5% in 24 hours and roughly 11% above its weekly low, after second-quarter results showed $169 million in revenue, $141 million directed to token buybacks and $213 billion in HIP-3 real-world asset perpetual contract volume. Even with that rebound, JPMorgan said momentum in HYPE-linked ETFs has weakened after strong May and June inflows, citing about $280 million in cumulative inflows through June followed by more than $13 million in net outflows in July and a separate 12-session outflow streak totaling about $29.8 million through Aug. 3. The bank attributed the slowdown to rising competition from newly regulated U.S.-based perpetual futures platforms and crowded prediction markets, while noting Hyperliquid's Assistance Fund and revenue-backed buybacks remain structural support for HYPE.
- Perpetual futures: Futures-style contracts without expiry that let traders hold leveraged positions continuously.
- Token buybacks: Open-market purchases of a token using protocol revenue or reserves, which can create recurring demand.
- Fully diluted valuation: A valuation based on the total eventual token supply rather than only the tokens currently circulating.