Key Insights:
- Multicoin executive reveals reasons behind the company’s decision to invest heavily in Hyperliquid crypto.
- Perps liquidity parity with central exchanges such as Binance is among the key reasons.
- Fresh HYPE crypto burn brings total to 48.5 million coins burned, roughly 4.8% of total supply.
Over the last few months, Hyperliquid crypto has become one of the most appealing cryptocurrencies to institutional investors. Among those companies was Multicoin, whose history of HYPE crypto holdings has been quite the rollercoaster.
Multicoin is one of the biggest institutional holders of Hyperliquid crypto. The company held about 4 million HYPE crypto at its peak earlier this year.
Multicoin has since sold off a large portion of its Hyperliquid holdings, leaving about 700 million coins remaining. But even more noteworthy are the reasons why the company acquired that many HYPE coins in the first place.
Multicoin’s head of venture, Spencer Applebaum, noted that the company embraced Hyperliquid crypto after its core exchange products matched major exchanges. This includes major centralized players such as Binance.
Applebaum also noted that Hyperliquid’s approach to liquidity and outsourcing distribution contributed to HYPE crypto’s appeal. Although Multicoin slashed its HYPE crypto holdings considerably, the executive noted that it still represented one of its biggest crypto positions.
Hyperliquid Crypto Burns Hit 4.8% of the Circulating Supply
HYPE crypto has also been appealing to both retail and institutional investors for its deflationary characteristics. Interestingly, it just concluded the week with another burn, removing roughly $2.65 million in HYPE crypto from the market.
Onchain Lens revealed that Hyperliquid purchased 32,770 HYPE on Saturday, at an average price of $81.01. The same coins were then burned. The protocol has so far removed 48.57 million coins from circulation, which would be worth about $3.82 billion at present value.
The amount of burned HYPE crypto is now rapidly approaching 5%. The cryptocurrency now has roughly 251.7 million coins in circulation. However, it is worth noting that this is only a fraction of its total supply of 971.8 million coins.
This is yet an extra factor behind the growing institutional demand for Hyperliquid crypto. And while these factors have contributed to healthy demand, institutional inflows still have a long way to go.
For context, Hyperliquid ETFs have so far attained $336 million in total cumulative flows. In other words, institutional demand was still punching below its potential.
Hyperliquid Crypto Slides After Clocking New ATH
HYPE crypto just concluded a bearish week with the price retreating by almost 10%. Interestingly, this retracement occurred after it achieved a new ATH of 89.6.
HYPE price retreat was not entirely unexpected, considering that the RSI pulled back considerably despite the new top. This was a clear sign that the bulls were losing their momentum.
Moreover, HYPE price formed a bearish divergence on the weekly time frame. This could signal that further retracement might be on the cards.
Negative Hyperliquid ETF flows signaled that some institutional investors were already taking some profits off the table.
Overall spot flows also signaled that the profit-taking narrative might be gunning for dominance. Robust spot inflows observed in August have since subsided.
Moreover, outflows have been more prevalent since the start of September, underscoring the shifting tide. Whether it will be enough to wipe out more of the recent gains remains to be seen.
As for the derivatives segment, open interest retreated from its August high of $3.75 billion to $2.96 billion at press time. This shift reflects the sentiment shift. In other words, Hyperliquid crypto’s pursuit of triple-digit price tags remains at bay for now.
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and past performance does not guarantee future results. Readers should conduct their own research before making investment decisions.
