Stirring 24% surge observed in HYPE mutual fund as positive trends materialize, Open Interest clinches unprecedented record high
Hyperliquid, the decentralized perpetuals exchange, saw its token, HYPE, surge to an intraday high of $39.6 on May 26, marking an impressive uptrend that began on April 4. At press time, HYPE was trading at $38.3, up by 315% from its April low and giving the cryptocurrency a market capitalization of approximately $12.85 billion.
The rally has been driven by a surge in trading volume, a rise in network fees, and a significant increase in open interest. According to data from DeFiLlama, Hyperliquid's seven-day volume climbed by 13.36% to $78.67 billion, making it the most active player in DeFi at present.
In the realm of derivatives trading, Hyperliquid has now processed over $1.56 trillion in perpetual futures volume, far surpassing Jupiter, the second-largest platform in this space. This momentum has translated into a record-high open interest of $1.39 billion.
Perpetual futures, similar to traditional futures contracts but without expiration dates, have become a popular tool for crypto traders. They allow users to apply leverage and aim for higher returns, contributing to HYPE's rise.
Additionally, weekly fee revenue reached an all-time high of $22.26 million, marking four consecutive weeks of fee growth. The spike in fees could potentially be used by Hyperliquid to buy back HYPE tokens from the open market, potentially boosting the token's price by reducing the supply.
Hyperliquid's recent regulatory engagement with the U.S. Commodity Futures Trading Commission (CFTC) is believed to have played a significant role in the rally. The cryptocurrency submitted two formal letters to the CFTC in response to its call for public input on perpetual futures and 24/7 crypto trading. This proactive engagement was well-received by the crypto community, leading to a 15% surge in HYPE's token price within hours after the announcement.
Institutional and large investor interest in HYPE also appears to be rising. According to data shared by Lookonchain, two whale addresses recently acquired approximately $10.09 million worth of HYPE. Such large transactions often trigger follow-on demand from retail investors who follow whale activity as a sentiment indicator.
Retail interest in HYPE is already visible, with Google Trends data showing a sharp spike in search volume for the token, confirming an uptick in interest among retail users and often a precursor to increased trading activity and market momentum.
Technically, things are looking strong for HYPE. On the 4-hour chart, the token recently broke out of a symmetrical triangle pattern, a common bullish signal. It's also trading well above both the 20-day and 50-day simple moving averages, indicating a solid uptrend and usually acting as a buy signal for many traders.
Furthermore, HYPE appears to be forming a textbook cup-and-handle pattern. If this pattern plays out fully, the projected target would be around $47.7, roughly 24.5% higher than current levels.
In conclusion, Hyperliquid's recent uptrend is fueled by strong market performance, strategic regulatory engagement with the CFTC advocating for DeFi-friendly perpetual derivatives trading, and its innovative position as a decentralized perpetuals exchange offering advanced derivatives trading options without gas fees. This combination drives bullish sentiment and highlights Hyperliquid as a key player at the intersection of DeFi, derivatives, and evolving regulatory landscapes.
- The Tron-based token, HYPE, of the decentralized perpetuals exchange, Hyperliquid, reached an intraday high of $39.6 on May 26, marking a significant uptrend.
- Hyperliquid processed over $1.56 trillion in perpetual futures volume, making it the most active player in DeFi.
- Institutional and large investors' interest in HYPE appears to be increasing, with two whale addresses recently acquiring approximately $10.09 million worth of the token.
- HYPE has broken out of a symmetrical triangle pattern on the 4-hour chart, a common bullish signal, and is currently trading well above both the 20-day and 50-day moving averages.
- The recent rally of HYPE is attributed to strong market performance, strategic regulatory engagement with the CFTC, and Hyperliquid's innovative position as a decentralized exchange offering advanced derivatives trading with no gas fees, driving bullish sentiment in the crypto finance and technology industry.
