The volatile trading session that took place on February 5 was a clear example of how quickly narratives can diverge in the cryptocurrency market. While most large-cap assets fell amid regulatory uncertainty and mass liquidations, the HYPE Hyperliquid Index surged 6.2% following news of its integration into the Ripple ecosystem.
At the same time, XRP extended its decline by 10%, driven by broader market pressures rather than project-specific changes. The contrast highlighted how selective optimism can emerge even during a broad sell-off, especially when combined with infrastructure upgrades or ecosystem development.
HYPE's price trends to the downside on the daily chart after recording some gains. Source: HYPEUSD on Tradingview
HYPE rallies after integration with Ripple
Hyperliquid price rose 4.23% after confirmation that the platform had integrated the Ripple technology stack, a move aimed at improving interoperability and settlement efficiency.
Market participants appeared to interpret the move as a practical improvement rather than a speculative announcement, helping HYPE outperform the largely bearish market.
The enhance occurred despite the deteriorating mood in the industry. Bitcoin was trading near $71,000 after a edged decline, and the total cryptocurrency market capitalization fell by more than 6% that day. Against this backdrop, HYPE’s gains stood out because investors converted to assets tied to short-term network growth rather than macroeconomics-driven trades.
Although trading volume on HYPE increased following the announcement, movement remained relatively subdued, suggesting measured positioning rather than a edged enhance in speculative leverage.
XRP falls as market weakness prevails
In turn, XRP fell along with other major altcoins. Stamp fell to nearly 11% in 24 hours, tracking losses in Ethereum, Solana and BNB as risk appetite waned.
The decline occurred even as Ripple-related developments supported other parts of the ecosystem, highlighting that broader market conditions continue to outweigh individual catalysts for large-cap tokens.
The sell-off was reinforced by derivatives activity. The decline in the number of open positions and the enhance in the number of forced liquidations on centralized exchanges increased the dynamics of declines, especially in the case of assets with high exposure to financial leverage. XRP’s move appeared to be driven by sentiment rather than fundamentals, reflecting the defensive tone of the day.
The broader market context remains uncertain
The divergence between HYPE and XRP emerged as investors reacted to stalled discussions over the US Cryptocurrency Market Structure Act and ongoing debates over stablecoin regulation. These problems contributed to increased volatility and the liquidation of companies worth more than $800 million, mostly from long positions.
Meanwhile, the institutional position continued to change. Grayscale’s recent decision to remove Cardano from its company CoinDesk Crypto 5 ETF for BNB has strengthened its focus on liquidity and market depth, topics that continue to shape capital flows.
Hyperliquid’s growth indicates that targeted integrations continue to attract interest despite weakness in the broader cryptocurrency market. Its durability, however, will depend on actual adoption, not mere sentiment.
Cover image from ChatGPT, the HYPEUSD chart on Tradingview
