Institutional funds are looking for new outlets, and the fact that HYPE’s trading volume surpasses ETH does indeed indicate a problem.

FalconX Global Market Director Joshua Lim stated that as BTC and ETH enter range-bound fluctuations amid macro uncertainties and ETF outflows, institutional and hedge fund funds are shifting towards highly volatile assets such as Hyperliquid, Zcash, Venice, and AI-related tokens. Lim said that in FalconX client trading, the HYPE segment is sometimes more active than ETH. The appeal of Hyperliquid not only comes from HYPE liquidity but also from its early launch of products like perpetual contracts for private companies such as SpaceX and tokenized stocks, which are difficult to trade in other markets. (CoinDesk)