HYPE Outperforms Bitcoin Following Major Whale Activity

• HYPE ETF inflows topped $100M since May 12, but recent daily inflows slowed.
• Galaxy Digital moved $61M in HYPE, putting market demand and liquidity in focus.
• HYPE gained 10.99% to $62.85 as whale transfers and ETF speculation intensified.

Hyperliquid’s native token HYPE remained in focus this week as a combination of whale transactions, ETF-related speculation, and slowing institutional inflows prompted high monitoring of market activity.

The token continued to outperform Bitcoin despite recent weakness in the crypto market, supported by more than $100 million in reported inflows since mid-May. However, recent data showed that those inflows have begun to slow, while several large HYPE holders moved large amounts of tokens, creating a new test for market demand.

Institutional Flows Slow as Market Watches HYPE

According to market commentary shared by Alex, HYPE has outperformed Bitcoin since the launch of HYPE-related ETFs despite weaker Bitcoin price action. Data cited in the report showed inflows of more than $100 million since May 12.

However, the pace of new capital entering the product has eased. Reported net inflows fell to approximately $3.4 million two days ago and $1 million the following day.

The commentary also highlighted the distinction between new market purchases and token transfers that do not generate direct buying activity. That distinction became notable following a large movement involving Galaxy Digital.

Galaxy Digital Moves 1 Million HYPE

Blockchain tracking platform Lookonchain reported that Galaxy Digital unstaked 1 million HYPE tokens valued at around $61 million. The tokens were transferred to HyperEVM, with some observers arguing that the move could be connected to future ETF-related activity.

Shortly afterward, on-chain data tracked by Lookonchain showed that Galaxy Digital deposited 500,000 HYPE, worth approximately $30.36 million, to Bybit and OKX.

The transfer attracted attention since it introduced a huge amount of liquidity to exchanges. Market observers noted that if HYPE absorbs the additional supply without a major decline, it could indicate continued spot demand.

At the time of the transfer, HYPE traded above $60, placing the unstaked position at an estimated profit of at least $15.4 million.

Additional Whale Activity Emerges

Separate data from Arkham identified another transaction involving Loracle, which reportedly unstaked approximately $51.3 million worth of HYPE.

However, Arkham portfolio data showed that Loracle’s holdings were primarily concentrated in Tether Gold (XAUT), which accounted for roughly $8.22 million of an $8.38 million portfolio. Smaller allocations included HYPE, Ethereum, stablecoins, and other digital assets.

Meanwhile, HYPE continued its recent rally. According to CoinMarketCap data, the token recorded a surge of 10.99% over 24 hours to approximately $62.85. Its market capitalization increased to $15.95 billion, while daily trading volume rose by 9.15% to nearly $984 million.

Related: HYPE and XRP Funds Inflows Surge as Investors Dump BTC and Ether ETFs