Hyperliquid Token (HYPER) has dropped to its lowest level in seven months, falling below $1.80, as the platform's market share in the perpetual futures trading segment collapses from 12% to under 4% in just two weeks. The decline signals growing investor concern over platform liquidity and competitive pressures.
- HYPER token fell below $1.80, its lowest since May 2025
- Market share in perpetual futures dropped from 12.3% to 3.8% in two weeks
- Daily HLQ trading volume down 61% over the past 14 days
- Active addresses on Hyperliquid dropped 52% in two weeks
- Total value locked in perpetual futures declined from $1.3B to $780M
- Competitive pressure from dYdX and Bybit intensified in Q4 2025
Hyperliquid Token (HYPER) has hit a 7-month low, trading below $1.80 as of December 7, 2025, marking a 43% decline from its November peak. This downturn coincides with a dramatic erosion of the platform’s market share in the decentralized perpetual futures space, which has plummeted from a high of 12.3% to just 3.8% over the past 14 days. The drop is attributed to rising competition from rival platforms, including dYdX and Bybit’s decentralized offerings, which have captured significant trading volume through lower fees and improved order book depth. The collapse in market share has triggered a cascade of effects across Hyperliquid’s ecosystem. The HLQ token, used for fee discounts and governance, has seen a 61% reduction in daily trading volume, indicating diminished user participation. On-chain data shows a 52% drop in active addresses over the same period, suggesting reduced network engagement. Additionally, the platform’s total value locked (TVL) in its perpetual futures contracts has fallen from $1.3 billion to $780 million, reflecting a sharp withdrawal of capital from the protocol. Market participants are now reassessing Hyperliquid’s long-term viability, particularly as traders shift to platforms offering superior order execution and deeper liquidity pools. The price decline has also impacted investor confidence in the broader DeFi derivatives sector, with related tokens across the ecosystem experiencing moderate sell-offs. Analysts note that unless Hyperliquid achieves a significant protocol upgrade or introduces compelling incentives, its recovery trajectory remains uncertain.