Hyperliquid (HYPE) token drops to a crucial support level as volume on its perpetual decentralized trading platform slumped.

Hyperliquid (HYPE) dropped to a low of $12.10, a notable level since it was its lowest level on March 13. Its market cap has dropped from over $9.7 billion in December to $4.43 billion.

Crypto exchange Hyperliquid saw volume decline again in March, while its token dropped to a crucial support level.

Hyperliquid (HYPE) drops to key support

As reported by Benzinga previously, the Hyperliquid token price dropped to a low of $12.10 on Monday. This is a noteworthy level, as it was the lowest level reached by HYPE on March 13. At the beginning of December, Hyperliquid's market cap was over $9.7 billion. Now, it stands at $4.43 billion.

DeFi Llama's data reveals that the volume of cryptocurrencies traded on the Hyperliquid platform decreased once more in March. The exchange handled over $159 billion in volume, compared to $187 billion in February and $197 billion in January.

Hyperliquid has processed a cumulative volume of $1.16 trillion, making it the largest perpetual futures exchange in the industry. Jupiter (JUP), its biggest competitor, has handled $268 billion in cumulative volume.

The total volume of assets traded across all decentralized perpetual futures platforms also decreased in March. They processed over $275 billion in assets, down from $367 billion in January.

A similar trend occurred in the spot market, where all DEX networks handled $243 billion, compared to $564 billion in January.

This performance comes as Bitcoin (BTC) and most altcoins lost momentum and retreated. Historically, the volume handled in centralized and decentralized exchanges drops when crypto prices are diving.

JELLY delisting sparks criticism

HYPE's price also dropped amid criticism over how the exchange handled Jelly (JELLY), a new meme coin. A trader opened two long positions on JELLY, one for 30,000 ether (ETH) and another for 15,000 ETH, both at around $1,100. These positions were valued at about $4.1 million.

The trader then placed an additional position of $4.1 million short against those longs.

These trades pushed JELLY's price up by 400%, resulting in a major loss for the Hyperliquidity Provider Vault. The exchange later delisted the token, triggering backlash from the community. The platform has since pledged to compensate the affected users.

After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps. All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data. There is no need for users to contact support.

The post Hyperliquid token drops to crucial support as volume slumps on DeFi trading platform appeared first on Benzinga.