Hyperliquid’s Token Surges Amid Renewed Institutional Interest
Hyperliquid’s upward trend continued on Thursday, with the decentralized exchange’s token reaching an intraday high of $58.97.
HYPE is currently trading at $57.20, reflecting a 15.3% increase for the day, according to CoinGecko data. Its gains surpassed those of Zcash (12%) and Worldcoin (7%), coinciding with a resurgence of institutional interest.
ETF Demand Fuels Growth
The recently launched Hyperliquid ETFs recorded $25.5 million in net buying on Wednesday. This figure is 17 times greater than the token’s daily Assistance Fund burn, which is approximately $1.4 million, according to Dune Analytics. It also exceeds the combined net buying of the first five days, which totaled $22.35 million, according to SoSoValuedata.
ETF demand for HYPE is now significantly outpacing the token’s built-in supply reduction mechanism, a dynamic that could further restrict available supply.
“The market is rewarding real trading volume, fee generation, user engagement, and the perception that Hyperliquid is becoming one of the few crypto native platforms capable of competing with centralized exchange experiences,” Jason Rindahl, CEO of Nebula DeFi, told Decrypt.
Market Confidence and Transparency
On the prediction market Myriad, owned by Decrypt’s parent company Dastan, user confidence has been fully validated. The contract predicting whether HYPE would hit $52 in May resolved to 100% as the token surpassed the threshold on Wednesday.
Bitwise, one of the two issuers to file HYPE ETFs last week, published the wallet addresses for its Bitwise Hyperliquid ETF on Wednesday. “Hyperliquid’s DNA is all about transparency. Everything is onchain. Don’t trust, verify,” the firm tweeted.
In a similar show of support, Bitwise announced on Monday that it would allocate 10% of the ETF’s management fee to holding HYPE on its balance sheet, describing it as a “community-first model” aligned with Hyperliquid’s 99% revenue buyback mechanism. “If the protocol succeeds, the community succeeds,” the firm wrote.
Bitwise CIO Matt Hougan, a vocal supporter of Hyperliquid, published a detailed memo on Tuesday titled “Hyperliquid Is What You Get When Crypto Is Allowed To Grow Up.”
In the memo, he argued that the market is mispricing HYPE and identified two errors: a “category error” where investors value Hyperliquid as a crypto perpetual exchange rather than a global super-app for all assets, and an “anchoring error” where investors lump HYPE together with first-generation governance tokens rather than comparing it to high-growth financial infrastructure like Robinhood or CME.
“Hyperliquid is one of the most important crypto projects to emerge in years,” Hougan wrote. “I still think investors are underestimating its impact and its value.”
Nvidia Earnings and Market Sentiment
The mixed reaction in tech stocks following Nvidia’s earnings did little to dampen the optimistic sentiment surrounding altcoins.
The U.S. chipmaker released its first-quarter earnings on Wednesday, reporting revenue of $81.6 billion, an 85% increase year-over-year, exceeding Wall Street estimates of $78.9 billion. The chipmaker also authorized an $80 billion stock buyback and raised its dividend.
Despite the positive results and strong guidance, Nvidia shares fell more than 3% in after-hours trading, but are currently attempting a recovery.
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