JPMorgan has assessed that HYPE, the token of decentralized cryptocurrency exchange Hyperliquid, may struggle to maintain market share due to the rise of regulated platforms in the United States and intensifying competition. Inflows into spot exchange-traded funds (ETFs) have also virtually halted, with the bank analyzing that future market share and ETF demand will be key variables for the price of HYPE.
According to CoinDesk on the 6th (local time), JPMorgan stated in a report released that day that inflows into Hyperliquid spot ETFs have slowed rapidly since last month and shown stagnant flows entering July and August. In a note to investors, JPMorgan assessed that "with liquidity recently shifting to U.S. regulated platforms and competing platforms emerging one after another, decentralized platforms like Hyperliquid are expected to face significant difficulties in securing market share."
JPMorgan cited intensifying competition among exchanges as the primary reason for the decline in demand for Hyperliquid ETFs. The analysis particularly noted that the recent approval of cryptocurrency perpetual futures trading by U.S. regulators has significantly boosted the competitiveness of centralized exchanges (CEXs). JPMorgan projected that demand for perpetual futures trading could consequently shift en masse from the decentralized exchange (DEX) Hyperliquid to centralized exchanges.
The situation is also challenging in terms of business diversification. Hyperliquid expanded its business scope by launching the prediction market platform 'Outcomes' in May, but this market is also assessed as highly competitive. JPMorgan's diagnosis is that since Hyperliquid's ecosystem is structured with transaction fees as a crucial foundation for token value, the ability to secure users and trading volume in new ventures like prediction markets could be a key variable for future growth.
In the report, JPMorgan forecasted that "HYPE spot ETF funds, which recorded net inflows in May and June, have also stagnated entering July and August," adding that "whether market share can be maintained and ETF inflow trends will act as key variables for the price of HYPE."
Meanwhile, Hyperliquid's token HYPE was trading at $55.22 (approximately 79,000 won), down 3.11% from the previous day, as of 10:54 p.m. on the 6th (Korean time) on CoinMarketCap. This represents a 23.12% decline compared to a month ago, reflecting market concerns.
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