HYPE Rises on Hyperliquid's Market Dominance and On-Chain Innovation

Hyperliquid, one of the leading decentralized perpetual exchanges in the crypto space, continues to assert dominance in the derivatives market, with daily trading volumes surpassing $30 billion and capturing over 80% of the decentralized perpetuals market within a year [1]. The exchange’s success is driven by a dual-layer design that combines centralized exchange-level performance with permissionless infrastructure, making it a formidable player in the on-chain trading ecosystem [1]. RedStone, a key data provider, highlighted that Hyperliquid’s fully on-chain order book enables spreads and execution speeds comparable to centralized platforms, reinforcing its position as a category leader [1]. The platform’s permissionless market creation framework, HIP-3, has fostered one of the most active builder ecosystems in DeFi, with revenue-sharing mechanisms rewarding developers more than the protocol itself [1]. These innovations have positioned Hyperliquid as a potential backbone for the next phase of on-chain trading infrastructure.

As the native token of the Hyperliquid network, HYPE has seen increased interest amid the platform’s growth. At press time, HYPE is trading above $40, having lost 1% of its value in the last 24 hours [1]. Despite broader market weakness, HYPE remains relatively stronger than other major cryptocurrencies such as BTC and XRP, as indicated by technical indicators [1]. The moving average convergence divergence (MACD) has recently crossed into the bearish zone, signaling increased selling pressure, while the relative strength index (RSI) at 45 suggests HYPE is not yet oversold [1]. Analysts suggest that a market recovery could propel HYPE toward a new all-time high of $50, particularly if Hyperliquid continues to gain traction among traders and institutions [1]. However, if the bearish trend persists—potentially exacerbated by the upcoming Federal Reserve speech—HYPE could fall below the $40.4 level and retest its August low of $35.3 [1].

The token’s price action reflects broader uncertainty in the crypto market. The cryptocurrency sector has resumed its bearish trend following a brief rebound, with the hawkish FOMC minutes from Thursday dashing expectations for a September rate cut [1]. This has pushed Bitcoin below $113,000 and left Ether struggling to break above $4,300. Despite these challenges, HYPE remains in focus due to the positive momentum within the Hyperliquid ecosystem [1]. The platform’s total value locked (TVL) stands at $2.2 billion, and its 30-day trading volume has approached $330 billion, further highlighting its growing influence [1].

Investor sentiment is also influenced by Hyperliquid’s token economics. The platform uses 97% of its trading fees to repurchase and burn HYPE tokens, reducing supply and potentially supporting price appreciation [3]. This deflationary mechanism, combined with strong institutional demand and active developer contributions, has made HYPE a compelling asset for investors seeking exposure to a rapidly evolving derivatives market [3]. Some analysts have highlighted the potential for HYPE to break above $47 and test the $50 level if the broader market stabilizes and bullish momentum builds [1].

The continued growth of Hyperliquid and its native token underscores the increasing convergence between decentralized and centralized exchange models [1]. As the platform solidifies its leadership in DeFi derivatives, HYPE’s price trajectory will likely remain tied to the broader market’s volatility and macroeconomic developments [1]. Investors are closely watching for signs of a sustained recovery, as well as any regulatory or policy shifts that could impact the crypto market.

[1] https://invezz.com/news/2025/08/22/hype-targets-50-as-hyperliquid-dominates-derivatives-market/

[2] https://m.economictimes.com/crypto-news-today-live-21-aug-2025/liveblog/123417173.cms

[3] https://www.blocmates.com/articles/heaven-dex-the-launchpad-for-great-ideas