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Surprisingly high institutional demand is being drawn to Hyperliquid, with daily inflows into the United States. Despite the stark disparity in the market capitalizations of the two assets, HYPE ETFs are outperforming XRP products.
Hyperliquid wins ETF race
The most recent ETF data shows that one-day net inflows for HYPE products were about $24.42 million. During the same time frame, XRP ETFs received $18.47 million. This puts HYPE's daily intake about 32% higher than XRP's, which is an odd outcome given XRP's significantly larger market share.
When market capitalization is taken into account, the comparison is even more remarkable. HYPE is worth about $18.52 billion, while XRP is worth $89.19 billion. However, compared to XRP's five listed ETF products, HYPE's three attracted more new capital. This may be a sign of increased investor demand for higher-beta exposure in the wake of the wider cryptocurrency rebound.
The price performance of HYPE is consistent with that interpretation. After reaching about $86, the asset is currently trading at $83.20, continuing a breakout that started at $57 earlier this month. It is still well above its major moving averages and has already decisively moved past earlier highs of around $75.
But from a technical standpoint, the trade has gotten crowded. HYPE is in overbought territory with an RSI of about 74. There is a significant distance between the price and the immediate dynamic support, with its closest short-term moving average located at about $69.30.
XRP's rally struggles
XRP presents a distinct configuration. After an explosive rally from about $1.00 and a rejection near $1.70, the asset is currently trading at about $1.42. Although XRP is still above its long-term moving average at $1.35, the momentum has obviously decreased. Important context is also provided by longer-term ETF flows.
Over the past 30 days, XRP has drawn about $141.61 million, and $1.64 billion in total. HYPE has a 30-day total of $51.24 million and a cumulative total of $343.48 million. As a result, HYPE has not surpassed XRP in terms of total institutional demand. The comparison of $24.42 million and $18.47 million represents only one day's flows.
Nevertheless, the daily reversal is noteworthy. Risk appetite appears to be growing beyond established large-cap cryptocurrency exposure, as investors are currently willing to devote significant capital to the smaller and more volatile HYPE market.
U.Today Editorial Team
Dan Burgin
