Hyperliquid drops 56% but revenue hits a new high! Contradictory signals present a buying opportunity?

Hyperliquid fell from $58 to $25 in less than 90 days, but DEX revenue reached a peak during the same period, and this divergence between price and fundamentals is sparking heated market debate.

Hyperliquid price plummeted over 50%, but revenue data defied the trend and hit new highs

(Source: DeFiLlama)

Hyperliquid’s price is undergoing a severe correction. In less than 90 days, the HYPE token price has dropped over 56.5%, crashing from a high of $58 to below $25 at the time of writing.

This decline coincides with the overall weakness in the crypto market. October and November 2025 are widely regarded as the worst two months for the crypto market, with mainstream tokens under pressure and investor sentiment low.

However, confusingly, Hyperliquid DEX’s revenue reached a high during the same period. According to DeFiLlama data, Hyperliquid’s monthly revenue hit record highs in October and November, indicating that the platform’s actual usage and trading activity did not decline with the price.

This divergence between price and fundamentals has sparked intense discussion in the market: is the market mispricing quality assets, or are revenue figures hiding deeper issues?

Buyback controversy: money-burning rescue or vanity project?

Every time HYPE’s price crashes, there are many confusions and debates about the significance of token buybacks.

Vlad Svitanko, CEO of Cryptorsy Ventures, sharply criticizes this. He compares stock buybacks to “spending money to make friends queue at your restaurant, creating a false impression of high demand.”

Svitanko believes this is one of the stupidest behaviors in crypto, criticizing projects for burning millions of dollars to satisfy vanity rather than reinvesting funds to generate more returns. He bluntly states: “Hyperliquid’s profits are higher than banks, yet its token still declines on the yearly chart.”

Are buybacks really useless? Two camps debate

Skeptics’ viewpoint

· Buybacks only create a short-term demand illusion

· Funds should be invested in product development and ecosystem building

· If fundamentals are strong enough, there’s no need to rely on buybacks to support the price

Supporters’ viewpoint

· Buybacks are a value return mechanism for token holders

· Reducing circulating supply helps stabilize long-term prices

· Stock buybacks are a mature capital operation in traditional finance markets

Svitanko’s perspective has its merits, but from a macro perspective, HYPE remains one of the top ten cryptocurrencies globally. Admittedly, its price has fallen significantly from its all-time high, but as fundamentals continue to improve, once the entire crypto market recovers, it is very likely to rebound to previous highs.

The key question is: Is Hyperliquid’s revenue growth real and sustainable? If yes, then the current price may indeed be undervalued.

Futures trading explodes, Hyperliquid stands at the forefront

In 2025, futures trading volume hit a record high, which is a major positive for Hyperliquid. As one of the leaders in decentralized derivatives trading, Hyperliquid is at the core of this growth sector.

Many investors see this price drop as a good opportunity, believing the market overreacted to short-term negative sentiment and overlooking Hyperliquid’s advantages in product competitiveness, user experience, and market positioning.

Hyperliquid’s core competitive advantages

High-performance on-chain order book: Provides trading experience close to centralized exchanges

Zero Gas fees: Significantly reduces costs for high-frequency traders

Deep liquidity: Better slippage control on major trading pairs than most DEXs

Fully on-chain transparency: All orders and settlements executed on-chain

These features give Hyperliquid a unique position in the decentralized derivatives space, especially as institutional investors and professional traders increasingly focus on DeFi.

Hyperliquid technical analysis: short-term rebound or continued decline?

(Source: Trading View)

From a technical perspective, HYPE’s price needs to break through the $30 psychological resistance to confirm any real breakout or upward trend.

The long-term downtrend is not yet over, especially as the overall market appears “dead” in momentum. If the price falls below $22.5, HYPE could quickly drop toward $20, potentially finding a bottom buy zone there.

Key technical indicator interpretation

According to TradingView data, Hyperliquid’s chart may be about to show a short-term rebound, as the RSI indicator is around 33, approaching oversold levels. Historically, when RSI drops below 30, it often triggers a technical rebound.

However, caution is needed: if this rebound fails to turn into a sustained rally, it only confirms the ongoing downtrend. Investors should watch for these key signals:

Bullish signals

· Successfully break and hold above $30

· RSI rebounds above 50

· Trading volume increases

Bearish signals

· Fall below $22.5 support

· RSI remains below 40

· Revenue growth slows or stagnates

Price and value divergence, opportunity for long-term investors?

The biggest current issue for Hyperliquid is not product or revenue, but market confidence. In the overall weak crypto environment, even projects with strong fundamentals are not immune to sell-offs.

But from another perspective, this divergence between price and value may create an entry opportunity for long-term investors. If you believe that:

· Decentralized derivatives trading is the future trend

· Hyperliquid’s technology and products are competitive

· Current revenue growth is sustainable

then the current price might offer a relatively attractive risk-reward ratio.

Of course, investors should remain cautious of these risks:

· The overall market may continue to be sluggish

· Pressure from competitors (like dYdX, GMX)

· Regulatory uncertainties

· Technical risks and security issues

Ultimately, whether Hyperliquid can return to previous highs depends on its ability to continue leading in product innovation, user experience, and ecosystem development, while waiting for the overall market environment to improve. For high-risk-tolerance investors, current conditions might be suitable for phased accumulation; for conservative investors, waiting for clear trend reversal signals may be wiser.