XRP News Today: HYPE Token Surges 400% in Three Months, Becomes Fifth-Largest by Futures Open Interest

HYPE, the native token of decentralized perpetuals exchange Hyperliquid, has surged to become the fifth-largest digital asset by futures open interest, surpassing Dogecoin (DOGE). The total dollar value of open HYPE futures positions, including both perpetual and standard contracts, stands at $2.06 billion. This places HYPE ahead of DOGE, which has $1.83 billion in open interest, but still behind XRP, Bitcoin (BTC), Ether (ETH), and Solana (SOL), which continue to dominate the top three positions.

The rapid rise of HYPE in the derivatives market is notable given its relatively smaller market capitalization compared to some of the tokens it now outpaces in open interest. This trend highlights increasing demand for tokens powering purpose-built blockchain platforms like Hyperliquid. Hyperliquid is a decentralized exchange (DEX) built on its own Layer 1 blockchain and specializes in on-chain perpetual futures. According to data from a Dune Analytics dashboard, Hyperliquid accounted for 60% of the $94.3 billion in total on-chain perpetuals trading volume last week.

The HYPE token plays a central role in the Hyperliquid ecosystem. It is used for fee payments, governance, and economic incentives. Notably, 97% of trading fees collected by the protocol are directed toward open market buybacks of HYPE, which helps maintain bullish momentum. Hyperliquid Hub stated that 92.78% of HyperCore protocol revenue goes to buying back HYPE on the open market—over $1 billion annually in buybacks. The post also noted growing institutional interest, with major funds and traditional finance market makers actively trading on HyperCore’s central limit order books (CLOBs), contributing to what it claims is the deepest liquidity in crypto.

HYPE has posted a more than four-fold rally over the past three months, hitting a record high of $44. This price surge has been accompanied by booming futures open interest and aggressive funding rates—at one point exceeding 100% annualized—indicating strong demand for leveraged long positions. The rise of HYPE to the fifth position in futures trading highlights the growing interest and investment in emerging cryptocurrencies. This shift is particularly notable as HYPE has surpassed other well-known tokens like Dogecoin (DOGE) in terms of futures open interest. The performance of HYPE underscores the dynamic nature of the cryptocurrency market, where new tokens can quickly gain traction and challenge established players.

The continued dominance of XRP at the top of the futures trading rankings is a testament to its enduring popularity and utility. XRP's strong performance is likely driven by its use case in global payments and its ongoing legal developments, which have provided a sense of clarity and stability for investors. The joint filing by Ripple and the SEC to unlock $125 million from escrow suggests progress toward resolving the legal issues surrounding XRP, which could further boost its appeal.

The surge in HYPE's popularity can be attributed to several factors, including its innovative features and the growing interest in decentralized finance (DeFi) platforms. As more traders and investors explore the potential of DeFi, tokens like HYPE that offer unique functionalities and use cases are likely to see increased demand. The all-time high of $44.69 for HYPE, with a market cap exceeding $14.8 million, reflects the strong market sentiment and the potential for further growth.

The rise of HYPE and the continued dominance of XRP in the futures trading market highlight the evolving landscape of cryptocurrencies. As new tokens emerge and gain traction, the competition among established and emerging players intensifies. This dynamic environment presents both opportunities and challenges for investors, who must navigate the complexities of the market to identify the most promising tokens. The performance of HYPE and XRP serves as a reminder of the importance of staying informed and adaptable in the ever-changing world of cryptocurrencies.