Lion Group Bets Big on HYPE, Dumps Solana and Sui

Lion Group Holding, a Nasdaq-listed trading platform based in Singapore, has announced a strategic shift in its cryptocurrency portfolio, moving from Solana (SOL) and Sui (SUI) to Hyperliquid’s native token, HYPE. The company’s decision comes as HYPE reached a new all-time high of $51.84 on Monday, according to CoinGecko. Lion Group plans to gradually exchange its holdings to lower the average acquisition cost and accumulate HYPE during periods of market volatility. The firm also highlighted the launch of institutional custody solutions for HYPE by BitGo as a key factor in its decision to reallocate assets [1].

Lion Group’s crypto treasury includes a substantial amount of SOL and SUI, with 6,629 SOL tokens valued at over $1.4 million, placing the firm among the top six holders of the token. Additionally, the company holds over one million SUI tokens, valued at $3.5 million. If Lion Group were to sell its current holdings at current prices, it could acquire more than 96,000 HYPE tokens, significantly increasing its stake in the asset. The company already holds over 128,000 HYPE tokens, indicating a growing confidence in the token’s long-term potential [1].

The move has had a positive impact on Lion Group’s stock performance. The company’s shares rose more than 11% in the latest session and continued to gain ground in after-hours trading, reaching a 20% increase overall. The stock’s surge reflects investor optimism about the platform’s strategic pivot to HYPE and its alignment with institutional infrastructure developments [1].

HYPE has also seen increased adoption from other entities. In July, Hyperliquid Strategies, previously known as Sonnet BioTherapeutics, announced its intention to buy and hold 12.6 million HYPE tokens. Meanwhile, Hyperion DeFi, a U.S.-based biotech firm, has acquired over 1.5 million HYPE tokens as part of its own reserve strategy. These institutional-level acquisitions suggest a broader recognition of HYPE’s potential in the decentralized finance (DeFi) space [1].

Market activity for HYPE has surged in recent weeks, with trading volumes spiking to a three-month high above $755 million in the past 24 hours. Open interest has also reached an all-time high of over $2.12 billion, reflecting growing participation in the token’s derivatives market. The token’s price rally to nearly $55 has positioned it among the top 15 cryptocurrencies by market capitalization, with analysts noting its potential to surpass ChainLink (LINK) given its regular reinvestment of fees and focus on long-term token holdings [2].

The recent momentum in HYPE has been supported by both retail and institutional traders, with around 53% of large holders currently maintaining long positions. A recent whale, identified as qianbaidu.eth, deposited $5 million in USDC to open a 5X leveraged long position in HYPE, generating nearly $500,000 in unrealized gains. The whale's position reflects broader bullish sentiment in the market, although holding leveraged positions comes with the cost of ongoing funding fees [2].

Looking ahead, Hyperliquid is preparing to launch its native USDH stablecoin, which is expected to further enhance liquidity on its decentralized exchange. The stablecoin will rely on over $5 billion in USDC deposits from users and aims to facilitate more efficient liquidity deployment. Paxos, Frax, and Agora have already been identified as potential builders of the USDH ticker, with applications set to close soon and a validator vote to follow. This development could further solidify Hyperliquid’s role as a major liquidity hub in the cryptocurrency ecosystem [2].

Source: [1] Lion Group Buys HYPE Token, Sells Solana, Sui (https://cointelegraph.com/news/lion-group-buys-hype-token-sells-solana-sui) [2] HYPE Hits Record High of $55 During Race to Launch USDH (https://www.mitrade.com/insights/news/live-news/article-3-1107883-20250909)