Michael Nadeau, founder of The DeFi Report, remains bullish on Hyperliquids long-term potential but warns that current momentum in its HYPE token is unsupported by fundamentals.
He points to sharp declines across key metrics: fees down 56%, trading volumes down 55%, open interest down 44%, and bridged assets down 32% over the past month. "The reality is it’s the same 50k users on HYPE that we saw last year," Nadeau said, suggesting price action is driven more by narrative than real growth.
Nadeau also challenges the “TradFi/Oil futures” narrative that recently boosted attention on Hyperliquid. Oil-linked perpetual volume peaked March 9 and has since declined, weakening a key catalyst. Technically, HYPE shows signs of strain-its RSI sits at 67, and the token faces resistance at its 50-week moving average.
He extends skepticism to PURR, the Nasdaq-listed Hyperliquid Strategies Inc., calling exposure through this vehicle premature in a risk-off market. While HYPE has surged 93% since January 20-and PURR up 87%-Nadeau sees little evidence of institutional demand justifying the rally.
His stance: long-term believer, short-term seller. For now, he’s fading the recent move.