Institutional Gold Rush: HYPE Surges, WLD Rises on Crypto’s New Frontier

HYPE, the native token of decentralized exchange Hyperliquid, reached an all-time high of $53.44, climbing over 1,200% from its lows in late 2024. This surge was fueled by significant developments within the Hyperliquid ecosystem, including the endorsement of VanEck CEO Jan van Eck and the announcement of a new stablecoin, USDH. VanEck’s public support included confirmation of the firm’s participation in the Hyperliquid ecosystem for several months and expressed eagerness to contribute to research, governance, and future collaboration. This institutional backing reflects a broader trend of traditional financial institutions exploring and engaging with decentralized platforms.

Hyperliquid’s USDH stablecoin has drawn notable institutional interest, with six proposals submitted for its issuance and management. Paxos, a leading stablecoin infrastructure provider, proposed a model where 95% of the interest earned from USDH reserves would be used to buy back HYPE tokens. These reserves would be supported by U.S. Treasury bills, repurchase agreements, and Paxos’ Global Dollar stablecoin. Frax Finance also submitted a proposal to mint USDH against its frxUSD, USDC, USDT, and dollar reserves, suggesting that reserve earnings could be funneled into staking rewards or HYPE buybacks. These initiatives are seen as pivotal for enhancing the credibility and utility of HYPE within the DeFi ecosystem.

The bullish sentiment is further supported by Hyperliquid’s strong performance in decentralized perpetual futures trading. The platform reported $106 million in revenue for the month, an 8.5% rise over the previous month and a 23% increase from July 2024. This financial momentum aligns with the platform’s growing market share, currently holding 70% of the decentralized perpetual futures market. HYPE’s price action reflects these fundamentals, with daily trading volume reaching $570 million. In addition, Lion Group Holding Ltd. announced a strategic reallocation of capital from Solana and Sui to HYPE tokens, attributing the move to the introduction of custody services for HyperEVM assets by BitGo.

Meanwhile, Worldcoin’s native token, WLD, experienced a significant price rally of nearly 20% following the announcement by fintech firm Eightco of a $270 million treasury plan. Eightco intends to use this capital to adopt WLD as its primary treasury reserve asset, while also holding smaller reserves in Ethereum and cash. The company’s shares surged by over 3,000% in a single trading day after the announcement. This move has been backed by major institutional players, including BitMine Immersion Technologies, which holds the largest Ether (ETH) holdings among public firms. Eightco also plans to change its ticker symbol to ORBS in recognition of its new focus.

Worldcoin, founded by Sam Altman, aims to establish a verified human network online through its Proof of Human model, which has generated 16 million accounts across 45 countries. The platform has faced regulatory scrutiny in several jurisdictions, particularly in China, where iris-scanning practices tied to Worldcoin have been restricted. Despite these challenges, WLD has experienced renewed interest, trading at $1.54 after a 49.2% increase in the past 24 hours. The token is still far from its peak of $11.74 in March 2024, but the treasury initiative by Eightco marks a significant step toward institutional adoption.

The developments in the crypto market, from stablecoin innovations to institutional backing and treasury reallocations, signal a maturing ecosystem. As decentralized platforms continue to attract traditional financial players and regulatory frameworks evolve, projects like Hyperliquid and Worldcoin may serve as key indicators of broader market trends. The interplay between technological innovation and institutional interest remains a critical driver of price action and market sentiment.