HYPE, the native token of the decentralized exchange Hyperliquid, has reached a significant milestone in the cryptocurrency world, becoming the fifth largest digital asset by open interest in futures.
According to the data provided by Coinglass, the total value of open positions in HYPE futures – both perpetual and standard – has reached 2.06 billion dollars, even surpassing Dogecoin (DOGE), which stands at 1.83 billion dollars.
This extraordinary performance places HYPE right behind giants like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP, the latter still ahead of the emerging token.
However, overtaking Dogecoin, one of the most popular cryptocurrencies with a historically high market capitalization, represents a clear signal: the projects blockchain tailored are gaining ground.
The strategic role of the HYPE token of Hyperliquid
At the core of HYPE’s success is Hyperliquid, a decentralized exchange that stands out for its specialization in the on-chain perpetual futures market.
Built on a proprietary Layer 1 blockchain, Hyperliquid has quickly established itself as one of the main players in the sector.
According to the data collected by the tracker Dune, curated by the analyst @uwusanauwu, Hyperliquid accounted for 60% of the total volume of on-chain perpetual futures trades in the past week, out of a total of 94.3 billion dollars.
An impressive market share that demonstrates the effectiveness of the protocol and the growing trust from users. The HYPE token is not just a trading asset: it plays a central role in the Hyperliquid ecosystem.
It is used for economic incentives, payment of commissions, and decentralized governance, allowing holders to actively participate in the decisions of the protocol.
One of the key elements driving the demand for HYPE is the automatic buyback mechanism. The protocol allocates 97% of the trading fees collected from users to buy back the token on the open market.
This creates a constant bull pressure, helping to support the price and strengthen investor confidence.
As stated by Hyperliquid Hub on platform X, “92.78% of the protocol’s revenue (HyperCore) goes to the buyback of HYPE, over 1 billion dollars per year in buybacks.”
This model has attracted the attention of large companies, investment funds, and traditional finance market makers, who are actively including HYPE in their portfolios and operating on the CLOB (Central Limit Order Book) of HyperCore, contributing to creating one of the deepest liquidities in the crypto sector.
Price rally and boom of open interest
In the last three months, HYPE has experienced a spectacular rally, quadrupling its value to reach the record of 44 dollars.
This increase occurred in parallel with a strong rise in open interest and with positive annualized funding rates, which at times exceeded 100%.
A clear signal of high demand for leveraged long positions, indicative of a strongly bull market sentiment.
The growing interest in HYPE is not only speculative, but reflects a structural confidence in the Hyperliquid model.
The combination of advanced technology, sustainable economic mechanisms, and community involvement is transforming HYPE into an increasingly relevant asset in the landscape of criptovalute.
Despite the rise of HYPE, XRP – the cryptocurrency focused on payments – maintains its position of advantage in the bull market of futures.
However, the speed with which HYPE has climbed the rankings shows that even the most established tokens must face increasingly fierce competition from emerging projects.
The success of HYPE could represent a paradigm shift in the sector, where real functionality and protocol efficiency begin to weigh more than mere notoriety or market capitalization.
A look to the future
With a growing institutional adoption, an expanding liquidity, and a thriving ecosystem, HYPE seems poised to further consolidate its position in the bull and bear futures market.
If the current trend continues, it is not ruled out that the token could get even closer to the industry leaders like Bitcoin and Ethereum.
In a context where technological innovation and decentralization are redefining the rules of the game, Hyperliquid and its token HYPE represent a concrete example of how a well-structured project can emerge and compete with the giants of the sector.
The crypto futures market is evolving, and HYPE is today one of the main protagonists of this transformation.
