Layer-1 blockchain Hyperliquid has experienced a 20% drop in its Total Value Locked (TVL) since the year began, bringing it down to $1.89 billion. This decline affects Hyperliquid's native token, HYPE, as reduced demand and user participation cause further plummet in trading volume.
DefiLlama data shows that while the broader DeFi market TVL sees an uptick, Hyperliquid's differs as it plunges, suggesting lower user involvement. HYPE's value dropped by 10% in the last week, and it continues to trade under its Super Trend line, indicating a bearish market condition.
With the Relative Strength Index (RSI) at 35.72, highlighting significant selling pressure, HYPE could fall below $20 unless a positive market shift happens to push its value to $31.04.
