Whale Bets and Validator Votes Fuel HYPE's Blue-Chip Ascent

Hyperliquid’s native token HYPE reached a new all-time high above $55 on September 9, 2025, driven by growing interest in the platform’s USDH stablecoin proposal process. The token’s price surged 23.4% over the past week, peaking at $55.04 before retreating slightly to $53.70. The rally coincided with the launch of a competitive process for teams to manage the USDH ticker, a move expected to enhance liquidity and integration within Hyperliquid’s derivatives ecosystem.

Twenty-one proposals have been submitted to date, including those from established stablecoin providers like Paxos, Frax Finance, and Agora. The process, which is open until September 10, will culminate in validator voting to select a partner for the USDH stablecoin. Many proposals include commitments to support the Hyperliquid ecosystem, with Agora pledging to share 100% of its revenue with the network, and Native Markets vowing to contribute reserve proceeds to the Hyperliquid Assistance Fund.

Hyperliquid, a decentralized exchange with its own layer-1 blockchain, has seen a surge in trading volumes and open interest, with the latter rising to over $2.12 billion. The platform processed more than $7.48 million in fees in August 2025 and continues to attract both new and veteran traders. HYPE, which now ranks as the 14th largest cryptocurrency with a market capitalization of $14.5 billion, is increasingly viewed as a blue-chip asset in the crypto space.

The USDH stablecoin initiative is expected to reduce Hyperliquid’s reliance on external stablecoins like USDC and USDT. Analysts suggest that a native stablecoin could redefine how stablecoins align with the platform’s core economics. Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, noted that the integration of USDH could enhance the network’s liquidity and settlement processes, potentially positioning Hyperliquid as a key player in the derivatives market.

However, the process has not been without controversy. Hyperstable, an existing Hyperliquid stablecoin protocol, raised concerns over the fairness of the competition, alleging that certain teams had prior knowledge of the USDH contest. Others countered that regulatory changes, particularly the passage of the GENIUS Act, had influenced the landscape. Despite these concerns, validator voting is set to begin soon, with the outcome expected to shape the future of USDH and, by extension, the trajectory of HYPE.

The surge in HYPE’s price has also been fueled by whale activity, including a recent $5 million USDC long position with 5x leverage. The position is currently showing nearly $500,000 in unrealized gains, though maintaining it comes with high funding costs. About 53% of HYPE whale wallets are currently in long positions, reflecting strong confidence in the token’s upward momentum.

The USDH ticker is viewed as a strategic asset in the broader crypto market. With several high-profile stablecoin issuers vying for the opportunity to launch USDH, the token has drawn attention to Hyperliquid’s potential to become a major liquidity hub. The selected team will be determined by validator votes, with the winning proposal expected to boost liquidity and further drive HYPE’s price in the coming months.