Hyperliquid’s market surge drives HYPE to unprecedented heights.
The native token of Hyperliquid, known as HYPE, reached an unprecedented high as trading activity and open interest on the platform experienced a substantial rise.
This trend reflects a larger upward movement in the market, largely influenced by Bitcoin achieving a notable price milestone, and coincides with Hyperliquid’s proactive engagement with regulatory discussions involving the US Commodity Futures Trading Commission.
Open Interest on Hyperliquid
Data from CoinGlass indicates that Hyperliquid’s open interest is nearing $12 billion, standing at $9.4 billion as of May 23.
This marks a significant 53% increase from the earlier peak of approximately $6 billion recorded earlier in the month.
Open interest signifies the total number of ongoing futures and perpetual contracts, typically increasing with positive market sentiment.
The rise in Bitcoin prices to an all-time high above $111,000 on May 22 led to an increased demand for derivatives, triggering a notable surge in trading activity on platforms like Hyperliquid.
Interactions with the CFTC
In the midst of heightened interest in the platform, Hyperliquid Labs submitted two letters to the CFTC.
These letters responded to the agency’s requests for feedback regarding perpetual derivatives and continuous cryptocurrency trading.
The company emphasized how its decentralized framework upholds transparency, self-custody, and composability, which are essential advantages of on-chain perpetual contracts.
Hyperliquid also highlighted its offerings of constant liquidity, real-time collateral management with pre-funded accounts, automated liquidations, and 24/7 trading.
It underscored the importance of decentralized architecture and immutable audit trails, enhancing both resilience and compliance preparedness.
The company concluded:
“Hyperliquid illustrates how fundamental DeFi principles can be operationalized to boost market efficiency, integrity, and user safety. Promoting DeFi in the US through open discussions and clear regulatory guidance represents a chance to ensure the US maintains its position as a frontrunner in financial innovation while effectively safeguarding users.”
HYPE Reaches New Heights
The regulatory conversations and progress made by decentralized trading platforms contributed to HYPE reaching a new all-time high.
As per data from CryptoSlate, the token participated in the broader market surge, increasing by over 12% within 24 hours to surpass $37. Over the past month, the digital asset has appreciated by more than 95%.
However, not every trader has capitalized on this upward trend.
Analysis from SpotOnChain revealed that a significant whale took a short position on 1.875 million HYPE tokens, valued at more than $57 million, using 5x leverage.
As the prices increased, the whale exited their position, sustaining a loss of $23.5 million, which nearly exhausted their $30.5 million USDC deposit meant for the trade. The remaining balance is just shy of $7 million.
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