Hyperliquid’s HYPE Token Drops 1.444% Amid Stablecoin Market Expansion

Hyperliquid's latest price was $54.53, down 1.444% in the last 24 hours. Arthur Hayes, co-founder of BitMEX, has made a bold prediction about Hyperliquid’s HYPE token, suggesting that it could potentially reach significant heights due to an explosive expansion in the stablecoin market. Hayes argued that the aggregate supply of stablecoins could climb beyond $10 trillion, which would spark a surge of speculative trading. He believes that this environment would encourage retail investors to chase outsized returns through leverage, fueling demand for platforms that cater to high-risk trading. This risk-on environment, where capital flows into high-yielding assets, would benefit platforms like Hyperliquid, thereby benefiting the HYPE token as market liquidity expands and the platform’s adoption surges. Hayes’ remarks build on earlier comments in Tokyo, where he suggested HYPE could see a 126x gain in three years. That prediction now resonates more strongly as Hyperliquid cements itself as one of the most influential decentralized exchanges in crypto. Unlike competitors, the platform operates entirely on its own blockchain and focuses on perpetual futures contracts, which let traders speculate without expiration dates. That design choice has translated into remarkable traction. Hyperliquid now accounts for more than 60% of the perpetual futures market. Its trading volumes have already surpassed Robinhood’s and chipped away at Binance’s dominance. Moreover, the platform’s financial performance has been equally striking. Research firm ASXN reported that Hyperliquid generated $1.2 billion in net income in 2024, narrowly edging out NASDAQ’s $1.13 billion. The comparison highlights the scale of its growth, particularly given that Hyperliquid operates with a workforce more than 800 times smaller. Crucially for token holders, 98% of the exchange’s revenue is directed toward HYPE buybacks. This constant purchasing pressure has underpinned the token’s performance.

Stablecoin issuer Circle appears set to deepen its role in decentralized finance by preparing a native launch of USD Coin (USDC) on Hyperliquid’s Layer 1 chain, HyperEVM. On Sept. 12, blockchain researcher MLM Blockchain flagged test transactions involving USDC on HyperEVM’s mainnet, suggesting that a native deployment could roll out in the coming weeks. Adding to speculation, the same wallet connected to Circle recently acquired about $5 million worth of Hyperliquid’s HYPE token. The purchase reinforced the view that Circle is positioning itself more deeply in the Hyperliquid ecosystem. If the launch goes live, HyperEVM would join 24 other networks that already support USDC, including Ethereum, Solana, and the XRP Ledger. Circle’s USDC is the second-largest stablecoin in the industry, with a market capitalization of more than $72 billion. Hyperliquid, on the other hand, is the dominant decentralized perpetual exchange, controlling more than 60% of the market. The potential launch follows a public statement from Circle CEO Jeremy Allaire, who wrote that the company intends to be “a major player and contributor” within the Hyperliquid ecosystem. According to him, “We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem. Happy to see others purchase new USD tickers and compete Hyper fast native USDC with deep and nearly instant cross chain interoperability will be well received.” Yet Circle’s push comes as Hyperliquid prepares to introduce its native stablecoin, USDH. That project has drawn attention from major players such as Native Market, Paxos, OpenEden, and Agora, signaling a real challenge to Circle’s position. Over the past year, Hyperliquid has relied heavily on Circle’s stablecoin to power its markets, with around $5.773 billion in USDC supply on the platform. That concentration means Hyperliquid accounts for roughly 8% of all USDC in circulation, making it one of Circle’s most dominant chains, according to DeFiLlama data. So, should liquidity migrate to USDH, Circle could lose as much as $200 million in annual revenue, which might impact its business.

Chorus One has introduced HYPE staking via a strategic partnership with FalconX. More than 1.85 million HYPE, valued at over $103 million, has already been staked via the Chorus One validator node. The Chorus One HYPE validator node made its first decision regarding the USDH governance vote by supporting Paxos. Chorus One, one of the top providers for institutional-grade staking on more than 40 blockchains, has partnered with FalconX, a top-tier crypto prime brokerage, to unveil a validator node on the Hyperliquid (HYPE) network. The Chorus One’s HYPE validator node, unveiled in close collaboration with FalconX, has already surpassed 1.85 million HYPE staked, valued at more than $103 million. Chorus One has existed since 2018 and helped more than 100k investors earn over $300 million from a total staking of around $2.8 billion. Over the years, Chorus One has partnered with key web3 projects to facilitate secure, and compliant validator nodes. The decision to work together with FalconX to unveil the HYPE validator node stems from the need to offer investors deep liquidity in a secure and compliant environment. Furthermore, the Hyperliquid ecosystem has attracted a huge volume of organic investors due to its unique ability to disrupt the vast crypto trading. “Partnering with FalconX ensures institutional clients gain direct access to staking through a platform trusted by some of the world’s largest financial players. With FalconX’s custody integrations and liquidity services, institutions can easily engage with Hyperliquid staking in a secure, compliant, and capital-efficient way,” the announcement noted. As such, HYPE holders can seamlessly delegate their tokens through the Chorus One validator node without any minimum or maximum. Currently, the Chorus One’s HYPE validator node is offering investors an annualized staking reward of between 2.1% and 2.3%. Through FalconX’s deep liquidity, Chorus One’s HYPE validator node can guarantee investors a distributed daily reward with automatic compounding. The Chorus One team of researchers is set to engage in the governance process of the Hyperliquid network. To start with, the Chorus One team announced that it used its delegated powers to vote in favor of Paxos as the designated issuer of USDH, a U.S. dollar-pegged stablecoin that is native on the Hyperliquid network. “Our assessment was made following extensive discussions with proposers, our partners at FalconX, and the interests of our delegators. We are confident that Paxos’s vision and execution will deliver significant value to Hyperliquid,” Chorus One noted. The Chorus One team stated that it voted for Paxos to offer USDH since it aligns with Hyperliquid’s roadmap, including earning 0 fees until the stablecoin’s market cap crosses $1 billion.

Ethena Labs has officially stepped back from its bid to manage Hyperliquid’s USDH stablecoin, signaling a shift in the competition for the role. The company’s decision to pull out came after receiving feedback from community members and validators. They raised concerns about Ethena’s non-native association with Hyperliquid and the broader ambitions of the company beyond the USDH stablecoin. The founder of Ethena Labs confirmed the move via a post on social media, noting that the decision was based on direct feedback from the Hyperliquid community and validators. The feedback emphasized that Ethena was not considered a core player within Hyperliquid’s ecosystem. Despite pulling out of the race, the company remains focused on the development of new products within the Hyperliquid network. With Ethena Labs out of the race, Native Markets has gained significant momentum. The protocol is now seen as the most likely candidate to secure the validator vote for issuing the USDH stablecoin. Polymarket traders have given Native Markets a 91% probability of winning, reflecting growing confidence in the team’s ability to lead the project. Kraken plans to list USDH, expanding its institutional visibility, while competition heats up with firms like Paxos and Frax entering the race.