Hyperliquid’s HYPE has ended the first quarter of 2026 with better investor returns compared to Bitcoin [BTC] and ether [ETH]. The altcoin posted a quarterly gain of 48%, while BTC fell 25% and ETH plummeted 32% over the same period.
In other words, HYPE outperformed BTC by over 70%, underscoring that HYPE was a major outlier during the West Asian crisis. According to David Schamis, CEO of Hyperliquid Strategies, the outperformance could even continue into the second quarter.
According to the director: “Hyperliquid has finally gotten some more attention lately, but no one is really talking about this massive outperformance against the two largest cryptos. It’s really great and will continue.”
Schamis meant JPMorgan and Bloomberg’s recent reporting on oil and gold traders choosing Hyperliquid to trade this weekend during the West Asian crisis.
In fact, the crisis has increased trading of non-crypto assets (also known as HIP-3) on the platform. As we enter the second quarter, HIP-3 growth has not slowed, and this could provide more bullish momentum for the altcoin as broader market sentiment recovers.
HIP-3 daily OI exceeds $2 billion
At the end of March, the HIP-3 market’s daily Open Interest (OI) exceeded $2 billion for the first time. Interestingly, traders in non-crypto assets have also stuck with the platform and reached an all-time high 60% retention during the same period.
Thanks to such returning traders, it is not surprising that the non-crypto trading segment on Hyperliquid continues to reach record highs. Here it is worth pointing out that HIP-3 daily volumes now average around 38%-48% of total hyperliquid activity.
In other words, HIP-3 adoption has become a major business activity and, by extension, a revenue generator.
With most of Hyperliquid’s revenue flowing into aggressive HYPE buybacks, HIP-3 growth has been a net positive for the altcoin’s value.
In mid-February, the platform’s weekly revenue doubled from about $8 million to $12 million – $14 million in March. This was after a whopping $68.8 million in monthly revenue in January. As shown in the chart, HYPE buybacks (green bars) peaked in January, mid-February and the first half of March.
It’s no surprise that the spikes in buybacks have coincided with HYPE’s upward momentum. In January, the altcoin rose 86% from $20 to $38. After a brief cooldown to $25, the next leg of the rally (in February and March) went up HYPE to $42 – A new increase of 72%.
As such, the recent pullback could be a buying opportunity if HIP-3 growth continues and broader market sentiment improves in the near term.
Final summary
- HYPE has outperformed ETH and BTC by over 70% in the first quarter, making it a major outlier and crucial part of the crypto watchlist in the second quarter.
- The HIP-3 markets continue to attract traders, exceeding $2 billion in daily OI and could drive buybacks and HYPE in the medium term.