Ethereum News Today: Institutional Trust Ignites HYPE's 8% Surge and $51 Spike

Hyperliquid’s native token, HYPE, surged 8% following BitGo’s announcement of institutional custody support for the Hyperliquid ecosystem. BitGo introduced qualified custody and self-custody solutions for HyperEVM, the Ethereum-compatible smart contract layer underpinning Hyperliquid, allowing institutional investors to securely store and interact with HYPE and other governance assets within the platform’s high-performance trading infrastructure [4]. This expansion of custody options comes amid rising interest in Hyperliquid’s decentralized perpetuals exchange and growing on-chain activity. BitGo’s move aligns with broader institutional adoption of decentralized finance, offering clients secure access to a rapidly expanding DeFi ecosystem [4].

Hyperliquid has seen a significant increase in trading volumes and user activity in recent weeks, with total open positions reaching an all-time high of 198,397. Open interest, representing the total value of outstanding derivative contracts, surpassed $15 billion, while total wallet equity peaked at $31 billion [2]. The exchange’s decentralized perpetuals platform has captured over 75% of the decentralized perpetuals market in less than two years, overtaking previous leader dYdX [2]. As of recent data, Hyperliquid’s daily trading volume hit a record $1.56 billion, with transaction fees reaching an all-time high of $93 million in July [2].

The price of HYPE also experienced notable volatility, surging past $51.07 in a 24-hour period, driven by intensified buyback efforts and strong network performance. Hyperliquid increased the percentage of fees allocated to buybacks from 97% to 99%, signaling its commitment to reducing circulating supply and increasing token value [3]. Analysts highlighted the token’s annualized revenue of nearly $2 billion over a single weekend, outpacing both Ethereum and Solana in daily earnings [3]. The protocol’s performance has made HYPE one of the fastest-growing assets in the crypto space, with a 1,500% increase in value over the past year and a weekly gain of over 22% [3].

Arthur Hayes, co-founder of BitMEX, recently forecast a 126x increase in HYPE’s value over the next three years, citing stablecoin expansion as a key driver of the decentralized exchange’s growth [2]. Hayes noted that Hyperliquid’s annualized fee revenue could reach $258 billion, up from its current $1.2 billion, as the platform continues to attract traders and liquidity providers [2]. The platform’s ability to process up to $30 billion in daily trading volume has positioned it as a major player in the decentralized derivatives market, with some trading pairs approaching Binance’s volume levels [2].

With growing institutional interest and a robust on-chain ecosystem, Hyperliquid is continuing to solidify its position in the DeFi landscape. BitGo’s support for HyperEVM and HYPE custody provides further validation for the platform’s infrastructure and security measures, encouraging broader participation from institutional investors [4]. As trading volumes and total value locked continue to climb, the Hyperliquid ecosystem is demonstrating strong fundamentals and expanding use cases that align with the increasing demand for decentralized financial services [4].

Source:

[1] Hyperliquid Price: HYPE Live Price Chart, Market Cap & ... (https://www.coingecko.com/en/coins/hyperliquid)

[2] Hyperliquid spikes as Arthur Hayes predicts 126x upside ... (https://cointelegraph.com/news/hyperliquid-hype-spikes-arthur-hayes-predicts-126x-upside)

[3] HYPE Price Surges Past $51 with BTC, ETH Rebound: Is $65 ... (https://finance.yahoo.com/news/hype-price-surges-past-51-092336440.html)

[4] BitGo Launches HyperEVM Support (https://www.bitgo.com/resources/blog/bitgo-launches-hyperevm-support/)