Hyperliquid Crashes by 17% as Crypto Market Tanks – How Low Can HYPE Go?

The aggregated market cap of cryptocurrencies has gone down by 3.9% in the past day alone as Trump’s trade war has increased the odds that inflation could rise in the United States in the following months.

Tariff increases will be imposed almost immediately on top commercial allies like China. These rushed measures have scared market participants as they could have huge, and probably unforeseen, consequences to the country’s economy.

Meanwhile, the Federal Reserve could opt not to cut interest rates this year as the current scenario demands a more cautious approach.

Lower crypto valuations have a direct impact on Hyperliquid’s trading commissions and revenue as the layer-one blockchain collects a percentage fee on every trade. If the value of cryptos declines so will trading volumes and, subsequently, the platform’s income.

JELLY Incident Inflicts Damage on Hyperliquid’s Reputation

Hyperliquid has faced operational issues lately. The latest incident involved a trading position on JELLY that a bad actor opened and self-liquidated, causing the price of the asset to skyrocket in just a few hours and inflicting significant losses on the Hyperliquid Foundation, as the latter was forced to make traders whole for allowing the exploit.