Crypto
HYPE Joins World's Largest Crypto Index, AVAX, DOT Face Exit
Bitwise added HYPE to its flagship crypto ETF as Avalanche and Polkadot lost ground in the evolving DeFi market.
22d ago 4,280
BLOCKINSIDERLoadingBitwise added HYPE to its flagship crypto ETF as Avalanche and Polkadot lost ground in the evolving DeFi market.
Bitwise just reshuffled the world's largest crypto index fund. The move dropped two long-standing names and replaced them with a hot newcomer. It happened this week, inside the Bitwise 10 Crypto Index ETF.
The change reflects a real and measurable shift in the DeFi demand pattern.
The Bitwise 10 Crypto Index ETF rebalanced its holdings this month. Avalanche (AVAX) and Polkadot (DOT) were both removed from the fund. Hyperliquid (HYPE) and Stellar (XLM) took their place instead, in accordance with market-cap and weighting rules.
HYPE now represents roughly 0.95% of the rebalanced fund. It earned entry after $1.34 trillion in trading volume this year. Revenue reached $320 million, with prices up 165% year-to-date.
The swap signals a broader shift in decentralized finance activity. Avalanche's DeFi footprint has been shrinking fast in recent weeks. Its TVL fell by over 20% in 30 days to roughly $470 million.
Trading volume on Avalanche dropped even faster, down more than 30%. Stablecoin supply on the network also contracted during the same stretch. Capital is leaving Avalanche's DeFi layer, not just repricing downward.
Hyperliquid tells the opposite story entirely. It was one of only two top-10 chains to grow TVL in 2026. Its ecosystem rose roughly 7% while rivals bled value.
Nansen data shows HYPE's audience has grown sharply over three months. Its top 100 addresses jumped 199%, from 143,000 to 465,000. These addresses represent the platform's most active and highest-balance wallets.
Top addresses matter because they often signal deep institutional or whale conviction. A near-tripling suggests deepening interest beyond retail speculation. It also points to genuine network growth, not just price momentum.
Yet positioning in derivatives markets tells a different story. Short contracts on HYPE are now more than twice as long as long contracts. Shorts sit near $67 million, dwarfing bullish bets in the market.
That gap matters because it clearly reveals skepticism despite strong price gains. Traders appear to expect a pullback or are hedging existing spot exposure. Heavy short interest can also fuel sharp squeezes if the price breaks higher.
Crowded shorts have preceded violent rallies for HYPE before this year. Large liquidation events have repeatedly caught bearish traders off guard, sometimes wiping out tens of millions in hours. That dynamic could resurface again if buying pressure returns.
HYPE has emerged as one of the strongest performers in the cryptocurrency market over the past several months. While many leading digital assets struggled with selling pressure, HYPE maintained a broader uptrend that began in February.
The sustained bullish structure highlights resilient investor demand and suggests buyers continue accumulating despite broader market uncertainty, keeping the token among the top-performing altcoins in the current cycle.
HYPE briefly slipped below its ascending trendline in May, but the breakdown proved short-lived as buyers quickly regained control. Renewed demand pushed the token to a new all-time high in mid-June, reinforcing bullish momentum.
With HYPE currently trading about 13.7% below that record, another rally could emerge if favorable market conditions and continued investor interest support another breakout toward fresh highs.
Technical indicators continue to favor the bulls as HYPE trades above the 61.8% Fibonacci retracement level, widely regarded as the bull market support floor.
Maintaining this level could provide the foundation for another recovery toward its all-time high. However, a decisive break below the support may invalidate the bullish outlook and trigger a correction toward the $62 or $58 price levels.
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