According to The Block, citing Dune Analytics, Hyperliquid faced weekly fund outflows exceeding $430 million, representing the platform’s third-largest retreat on record.

Meanwhile, the protocol’s TVL declined from above $6 billion in mid-September to roughly $4 billion, underscoring a cautious stance within the crypto derivatives markets.

The native token HYPE shed about 20% over the week amid a broader market downturn, signalling liquidity risk and investor repositioning.

Competition in the decentralized perpetual contract space intensified as rivals Lighter and Aster expanded their DEX volumes, challenging Hyperliquid‘s former market leadership.