The price of HYPE, the native cryptocurrency of the Hyperliquid decentralized exchange, has been on a very strong bullish momentum of late.
HYPE has been setting a new all-time high price every day for the past week and the momentum doesn’t seem to wane. At press time, the altcoin was trading at $38.75 after hitting an all-time high of $39.68 according to Coingecko data.
This rally is not just speculative; rather, it is underpinned by record-breaking protocol activity, growing market dominance, and emerging technical patterns that hint at even further upside potential. This is despite Hyperliquid confirming that HyperFND’s official X account was compromised on Saturday.
The unprecedented Hyperliquid protocol metrics
One of the primary reasons behind HYPE’s continued price surge is the unprecedented growth in Hyperliquid’s protocol usage.
Over the past few days, the decentralized exchange has seen an astonishing $10.1 billion in open interest, positioning it as the clear leader in the DeFi perpetuals market. In fact, Hyperliquid commands 82.6% of the entire market volume in this segment, far outpacing competitors like Drift and GMX.
Furthermore, daily trading fees on the platform have reached $5.6 million, setting a new record for the protocol.
With a TVL approaching $500 million and over 62,000 unique traders active, Hyperliquid’s momentum reflects more than just hype. It demonstrates growing adoption and consistent utility, factors that are often key to sustainable price appreciation.
Amid the heightened activity, Hyperliquid has overtaken the SUI in market capitalization, reaching $13.03 billion compared to Sui’s $12.03 billion. This flip, while it comes at a time that Sui is struggling from the Cetus Protocol’s $223 million hack, signals a broader trend in crypto markets of investors are rewarding platforms that show real usage, generate meaningful revenue, and offer innovative trading experiences.
Notably, investor sentiment has clearly shifted in favor of DEX-native tokens like HYPE, especially in the wake of increasing scrutiny on centralized exchanges. The Hyperliquid team has emphasized its fully on-chain nature and commitment to transparency.
These factors, combined with deep liquidity and a growing community, make HYPE a strong contender in the evolving DeFi crypto landscape.
Whale activity and liquidations are driving market excitement
Adding to the bullish case is the increasing whale activity seen on the protocol. A recent high-profile example involves a trader who suffered a $23.5 million loss on a 5x leveraged short position as the HYPE price surged 17.9% in a single day.
Events like this not only drive liquidations that further push price upwards but also attract speculators hoping to ride the wave.
A prominent trader by the name of James Wynn has also been actively using Hyperliquid, recently flipping from a $1.25 billion BTC long to a $111.8 million short. His actions are drawing more eyes to the platform, and his $25.2 million in profits show that seasoned players see value in Hyperliquid’s infrastructure and token economy.
Fractal patterns and technicals suggest more room to grow
Technical analysts are also pointing to a fractal pattern that suggests HYPE may be in the early stages of a breakout similar to Solana’s in 2021. The token has already rebounded more than 325% from April lows and has broken key Fibonacci retracement levels with conviction.
If this pattern continues, a move to the 2.618 extension at $43.293 appears likely. Some projections even extend as high as $45, implying a more than 16% gain from current levels.
Importantly, technical indicators such as the stochastic RSI and Awesome Oscillator remain in bullish territory.
Although the overbought RSI readings could imply a brief pause, the overall market structure points to sustained upward momentum as long as user activity and protocol revenue remain strong.