The post Hyperliquid defies altcoin weakness: What’s driving HYPE’s demand? appeared on BitcoinEthereumNews.com.

Market conditions remain unfavorable for most altcoins as Bitcoin [BTC] continues to dominate capital flows. At press time, the Altcoin Season Index stood at 34/100, showing that fewer than 35% of the top 100 altcoins outperform Bitcoin over 90 days. Within this environment, Hyperliquid [HYPE] began to diverge from the broader market structure. Source: CoinMarketCap Meanwhile, major peers weakened sharply; at the time of writing, Ethereum [ETH] traded below $1,900, while Solana [SOL] fell toward $78, both experiencing deeper drawdowns during the correction phase. In contrast, HYPE traded near $26.71, declining modestly while still holding its key support levels. Underlying fundamentals explain this resilience. Hyperliquid’s TVL expanded from near zero in early 2024 to above $6 billion by late 2025, signaling rapid protocol adoption. At the same time, protocol fees frequently spike between $6 million and $12 million, reflecting sustained trading activity. Source: DeFiLlama This resilience reflects structural drivers. Hyperliquid’s perpetual DEX produces strong real trading volume, while the Coinbase listing expands institutional access. As broader altcoins track Bitcoin’s weakness, HYPE increasingly trades its cycle. How HYPE defied sector-wide DAT losses Protocol development around HIP-4 continues to expand Hyperliquid’s long-term utility layer. Yet alongside this technical progress, treasury positioning reveals another layer of market strength. Digital asset treasury data now highlights a clear divergence across major strategies. Most DAT positions remained deeply underwater as market drawdowns pressured balance sheets. Several treasury allocations show unrealized losses amounting to more than $7 billion, reflecting accumulation during earlier market highs. As prices pulled back across the broader crypto sector, these positions have faced sustained negative mark‑to‑market performance. Source: Artemis Within this environment, Hyperliquid Strategies ($PURR) stands out. The treasury currently holds roughly $356 million in unrealized gains, making it the only strategy maintaining positive territory. This contrast underscores a structural difference. While many…

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Filed under: News - @ February 28, 2026 8:00 pm