Hyperliquid’s HYPE token significantly outperformed major cryptocurrencies in Q1 2026, recording 48% quarterly gains. This contrasted with Bitcoin’s 25% decline and Ethereum’s 32% drop. The altcoin’s strength was linked to growth in its non-crypto asset trading segment, which saw daily open interest surpass $2 billion, driving platform revenue and aggressive token buybacks.
The Hyperliquid platform’s HYPE token closed the first quarter of 2026 with substantial investor returns. It posted 48% quarterly gains while Bitcoin and Ethereum fell 25% and 32%, respectively.
This performance made HYPE a key market outlier during the West Asia crisis. Hyperliquid Strategies CEO David Schamis stated, “Hyperliquid has finally been getting some more press recently, but no one is really talking about this massive outperformance vs the two biggest cryptos.”
The crisis elevated trading of non-crypto assets, known as HIP-3, on the platform. This growth has not subsided as the market enters the second quarter.
In late March, the HIP-3 market’s daily Open Interest crossed $2 billion for the first time. Traders in this segment showed a record 60% retention rate over the same period.
HIP-3 daily volumes now average 38% to 48% of total activity on Hyperliquid. This adoption has become a key revenue driver for the platform.
Much of the platform’s revenue is used for aggressive HYPE buybacks. HIP-3 growth has therefore been a net positive for the altcoin’s token value.
Platform revenue doubled from about $8 million weekly in mid-February to $12-$14 million weekly in March. This followed a $68.8 million monthly revenue in January.
Spikes in buyback activity coincided with HYPE’s price rallies throughout the quarter. The token surged 86% in January and another 72% through February and March.
The recent pullback could present an opportunity if HIP-3 growth persists. A short-term improvement in broader market sentiment may also provide bullish momentum.
