Source: Hyperliquid Q2 Report; Compiled by: Jinse Finance Claw
Hyperliquid Overview, Five-Quarter Trends
Ownership revenue declined 4.7% sequentially, while almost every operating metric rose sequentially: this divergence stems from “growth model” pricing.
HYPE has decoupled from the crypto asset class for the second consecutive quarter.
Bitcoin fell 14.1% in Q2 2026, marking its third consecutive quarterly decline and roughly halving from its October 2025 high. HYPE, on the other hand, returned +79.2% over the same period, reaching an all-time high of $76.90 on June 16th, with a quarterly excess return of 93.3 percentage points, following a 66.9 percentage point return in Q1 2026. Such significant excess returns over two consecutive quarters are difficult to attribute to beta or position factors. We believe the market has begun to view Hyperliquid as a cash flow-generating protocol rather than a high-beta crypto exposure, a judgment supported by the fundamentals this quarter. Revenue bottomed out in April and ended the quarter with its strongest monthly run rate since November. Protocol revenue was $169.37 million, a 6.6% decrease quarter-over-quarter, but the trend is more important than the numbers themselves. April was the weakest month under the modern fee structure; June was 52% higher than the April low, with an annualized revenue of approximately $840 million. The recovery was driven by trading volume, native fees remained stable, and cumulative holder revenue surpassed $1 billion at the end of the quarter, nineteen months after traceable fees began to be recorded for buybacks. The decisive decision of the quarter was the USDC recalibration. Hyperliquid discontinued its native stablecoin USDH on May 14 and designated USDC, deployed by Coinbase, as the aligned quote asset. Validators approved AQAv2 on June 12 (19/26 validators, representing 69.1% of the staked assets). Approximately 90% of the cost-adjusted reserve earnings on the platform's USDC will accumulate to the aid fund every 30 days, with the first accumulation starting on August 26 and the first payment on October 3. The circulating supply of stablecoins on HyperEVM quadrupled this quarter, reaching $5.68 billion. We estimate the arrangement to be worth approximately $135 million to $200 million annualized at current interest rates, representing the largest single increment in the holder economy since the builder code was introduced, at the cost of relinquishing stablecoin sovereignty and the exit of the issuer that pioneered the model, while each deployer quoting USDH faces a mandatory decision point. HIP-3 set a trading volume record, while its deployer tier consolidated into a single operator. Deployer trading volume increased 59.6% quarter-over-quarter to $213 billion, representing about one-third of paired trading volume, and HIP-3 open interest increased 47% quarter-over-quarter at the end of the quarter. Beneath the surface is increased concentration. Trade[XYZ]'s trading volume share rose from 85% in March to 97% in June, and actually reached 100% in July. Ventuals and Felix exited during the USDH settlement period from June 17th to 19th; Dreamcash ceased operations in early July; Kinetiq completed its settlement according to the same schedule and chose to migrate, launching its first USDC trading pairs on July 1st. HIP-4 launched on the mainnet and immediately demonstrated both sides of its argument. The results market launched on May 2nd under validator-curated Phase 1 rules, generating $211.3 million in trading volume, 13,046 new traders, and a peak daily trading volume of $12.1 million, with a near-zero fee structure. The World Cup market accounted for 84% of the tracked trading volume, while the regular BTC market declined to approximately $100,000 per day. Third-party analysis shows about ten active markets, while centralized competitors have thousands. In June, the category's combined monthly trading volume on Kalshi and Polymarket was approximately $4.5 billion. Hyperliquid possesses a structural advantage in this category—results contracts are co-collateralized with perpetual and spot contracts in the same account—but this advantage has not yet been fully realized. Wall Street is coming from both directions. Three US spot HYPE ETFs were launched within eight weeks (21Shares THYP, May 12; Bitwise BHYP, May 15; Grayscale HYPG, June 3), with a cumulative net inflow of $308.7 million by the end of the quarter. Hyperliquid Strategies reported a quarterly net profit of $152.5 million, and its treasury has since grown to $29.3 million HYPE, according to its dashboard. The vested interests responded with litigation. CME and ICE lobbied the CFTC against Hyperliquid in May; the commission, in turn, issued a policy statement on perpetual contracts on May 29 and approved Kalshi's BTCPERP—the first regulated Bitcoin perpetual contract in the US; CME sued its own regulator on June 18. US entry barriers remain a hard constraint on addressable markets, and these barriers are now being challenged in court by vested interests. Supply discipline persisted amid rising prices. The team claimed 1.29 million HYPE out of the 29.8 million owed amount this quarter, a claim rate of 4.3%, marking the third consecutive quarter of decline, even as the token price doubled: the cumulative unclaimed unlocked tokens reached 64.9 million, equivalent to approximately $4.3 billion at the end of the quarter. The aid fund repurchased 2.77 million HYPE for $141 million, and the foundation's delegated staking rights fell below half of the total staking for the first time, while the validator set expanded to 27. A notable contrarian trend is that HyperEVM TVL decreased by 14.8%, while the stablecoin's circulating supply quadrupled. 262Q Event Timeline USDC recalibration, HIP-4 launch, and the ETF product line defined this quarter.
A Brazilian music project will turn real-time Bitcoin price changes into live orchestral performances using an algorithm to guide the instruments. The initiative has received government approval and funding through Brazil’s tax incentive programme to bring the concept to life in Brasília.
WeatherlyTrust Wallet confirmed a security incident affecting version 2.68 of its Chrome extension after users reported unauthorised wallet drains following a recent update. The company told users to disable the extension and upgrade immediately, saying its mobile app and other versions were not affected while the investigation continues.
WeatherlyPudgy Penguins projected its animated characters on the Las Vegas Sphere for a week-long holiday campaign, promoting its physical products rather than NFTs. The display helped the crypto-born brand reach mainstream audiences, supporting merchandise sales and boosting recognition despite a struggling NFT market.
JoyKeonne Rodriguez, co-founder of Samourai Wallet, began serving a five-year federal prison sentence and shared a personal account of his first days, describing the intake process and adjusting to prison life just before Christmas.
WeatherlyItaly’s competition authority has ordered Meta to allow rival AI chatbots on WhatsApp while investigating possible abuse of its dominant position. Meta plans to appeal, saying the policy protects its systems, but regulators worry it could limit competition and innovation in the AI market.
AnaisGrok, Elon Musk’s AI chatbot on X, has been praised by Vitalik Buterin for giving unpredictable responses that challenge users’ political biases and promote more truthful interactions.
AnaisThe Atlas memecoin, themed around US Vice President JD Vance’s pet dog, has nearly half of its supply controlled by 68 wallets showing signs of coordinated buying and potential insider activity. The token was heavily promoted by the influencer Whale Insider, raising concerns that retail investors could be at risk from price manipulation.
AnaisOver $35 million in cryptocurrency stolen from LastPass users since 2022 has been traced to Russian cybercriminals using weak master passwords and laundering funds through mixers and Russian exchanges. TRM Labs found the thefts continued for years, showing that even encrypted vaults can be compromised if security practices are weak.
WeatherlyMirae Asset Group is in talks to buy South Korea’s fourth-largest crypto exchange, Korbit, in a deal worth about 100 to 140 billion won ($70–$100 million).
AnaisHackers took control of Rainbow Six Siege, giving players billions of in-game credits and rare items, forcing Ubisoft to shut down the servers. The company is rolling back the affected accounts while allowing players to keep any items they used, and is gradually reopening the game.
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