The post Hyperliquid’s HYPE Drops to 7-Month Low, Here’s Why appeared on BitcoinEthereumNews.com. Hyperliquid’s HYPE token slid to a seven-month low as the market reacted to a steep decline in the protocol’s dominance and renewed concern over recent token movements. According to BeInCrypto data, the token dropped more than 4% in the past 24 hours to $29.24, its weakest level since May. Sponsored Sponsored Why is HYPE Price Falling? CoinGlass data showed that the drop triggered more than $11 million in liquidations, adding to pressure on a market already turning cautious. The shift marks a stark reversal for a protocol that once controlled the on-chain perpetuals market. Earlier in the year, Hyperliquid dominated the decentralized perpetuals market with near-total authority. However, that edge has faded. Data from DeFiLlama reveals a staggering erosion of its dominance, with the protocol’s share of the perpetuals market cratering from a peak of nearly 70% to less than 20% at press time. Hyperliquid’s Falling Market Dominance. Source: DeFiLlama This can be linked to the emergence of more aggressive rivals, such as Aster and Lighter, which have successfully siphoned volume through superior incentive programs. As a result, investors are rapidly repricing HYPE and are no longer viewing it as the sector’s inevitable winner but as a legacy incumbent bleeding users. Sponsored Sponsored Simultaneously, internal token movements have rattled confidence. Blockchain analytics firm Lookonchain reported last month that team-controlled wallets unstaked 2.6 million HYPE, valued at roughly $89 million. While the team restaked roughly 1.08 million tokens, the market fixated on the outflows. A total of 900,869 HYPE remained liquid in the wallet, and another 609,108 HYPE, worth about $20.9 million, moved to Flowdesk, a prominent market maker. The project also sold an additional 1,200 tokens for about $41,193 in USDC. These events have had a psychological toll on the community. As a result, HYPE has shed nearly 30% of… The post Hyperliquid’s HYPE Drops to 7-Month Low, Here’s Why appeared on BitcoinEthereumNews.com. Hyperliquid’s HYPE token slid to a seven-month low as the market reacted to a steep decline in the protocol’s dominance and renewed concern over recent token movements. According to BeInCrypto data, the token dropped more than 4% in the past 24 hours to $29.24, its weakest level since May. Sponsored Sponsored Why is HYPE Price Falling? CoinGlass data showed that the drop triggered more than $11 million in liquidations, adding to pressure on a market already turning cautious. The shift marks a stark reversal for a protocol that once controlled the on-chain perpetuals market. Earlier in the year, Hyperliquid dominated the decentralized perpetuals market with near-total authority. However, that edge has faded. Data from DeFiLlama reveals a staggering erosion of its dominance, with the protocol’s share of the perpetuals market cratering from a peak of nearly 70% to less than 20% at press time. Hyperliquid’s Falling Market Dominance. Source: DeFiLlama This can be linked to the emergence of more aggressive rivals, such as Aster and Lighter, which have successfully siphoned volume through superior incentive programs. As a result, investors are rapidly repricing HYPE and are no longer viewing it as the sector’s inevitable winner but as a legacy incumbent bleeding users. Sponsored Sponsored Simultaneously, internal token movements have rattled confidence. Blockchain analytics firm Lookonchain reported last month that team-controlled wallets unstaked 2.6 million HYPE, valued at roughly $89 million. While the team restaked roughly 1.08 million tokens, the market fixated on the outflows. A total of 900,869 HYPE remained liquid in the wallet, and another 609,108 HYPE, worth about $20.9 million, moved to Flowdesk, a prominent market maker. The project also sold an additional 1,200 tokens for about $41,193 in USDC. These events have had a psychological toll on the community. As a result, HYPE has shed nearly 30% of…