HYPE Gains Momentum Amid Staking and Open Interest Recovery

• Hyperliquid's HYPE staking balance has increased by nearly 6% to $1.37 billion, indicating growing confidence among long-term holders according to market analysis.
• Open Interest in Hyperliquid derivatives has risen to $1.41 billion, showing strengthening retail demand and trader positioning for a potential short-term breakout as reported.
• Hyperliquid, a decentralized crypto exchange founded by Jeff Yan, has rapidly emerged as a major player in the crypto market with a focus on institutional-grade derivatives infrastructure according to its documentation.

Hyperliquid is experiencing a recovery, with HYPE trading above $26.00 as bulls regain control after a period of consolidation according to market reports. This rebound is supported by rising on-chain metrics and increased derivatives market activity. The Relative Strength Index (RSI) is near the midline, indicating a shift toward bullish sentiment, while the Moving Average Convergence Divergence (MACD) is above the signal line, suggesting increased risk appetite as stated in technical analysis.

The platform's staking balance has risen nearly 6% to $1.37 billion, signaling increased confidence from long-term holders according to market data. This rise in staking balance has a bullish effect as it reduces the supply of HYPE available for trading. Simultaneously, the derivatives market for Hyperliquid is showing optimism, with open interest (OI) increasing to $1.41 billion according to financial reporting.

Hyperliquid is leading the 2025 DeFi transformation by offering institutional-grade derivatives infrastructure. The platform has achieved $47B+ weekly trading volumes and holds 70–80% market share, reflecting the growing adoption of institutional-grade tools in decentralized finance.

What is Driving the Staking Balance Increase in Hyperliquid?

The surge in staking balance for Hyperliquid's HYPE token is being driven by a combination of increased retail participation and a rebound in open interest. Investors lock their holdings in smart contracts when they intend to hold for the long term. Increasing staking balance often has a bullish effect on prices, as the available supply in the open market narrows.

The increase in staking balance to $1.37 billion suggests that long-term holders are more confident in the platform's future performance. This confidence could be attributed to the platform's focus on speed, transparency, and user experience.

What Challenges Does Hyperliquid Face in 2026?

Despite its growth and success, Hyperliquid operates in an ambiguous legal environment and has drawn attention for its non-KYC (Know-Your-Customer) policy and potential exposure to illicit activities. This policy could lead to increased regulatory scrutiny and challenges in the future.

In addition to regulatory concerns, Hyperliquid also faces competition from other DeFi projects like Lighter and Aster. These competitors could potentially capture market share and affect Hyperliquid's growth trajectory. However, the platform's focus on institutional-grade derivatives infrastructure may provide a competitive edge in the market.

Hyperion DeFi, a company closely tied to Hyperliquid, issued a letter outlining its 2025 transformation and 2026 focus on the Hyperliquid ecosystem. Key actions in 2025 include a $50 million PIPE, launching the Kinetiq x Hyperion validator and HiHYPE liquid staking token, and token burns removing ~13% of supply.

How Does Hyperliquid Plan to Expand Its Ecosystem in 2026?

Hyperion DeFi is focused on becoming the leading Hyperliquid-native DeFi company. The company has deployed its HYPE through various protocols and partnerships to support the growth of Hyperliquid-native primitives and establish diversified revenue streams.

The CEO of Hyperion DeFi emphasized the belief that Hyperliquid's fundamentals and ecosystem will continue to drive growth and provide structural tailwinds for companies holding HYPE. The long-term vision includes expanding Hyperliquid's role in the tokenization of real-world assets and the AI-driven financial technology sector.

Hyperliquid aims to enhance liquidity, technical efficiency, and market accessibility on the platform. These initiatives are expected to further strengthen the platform's position in the DeFi space and attract more institutional and retail investors.