While most altcoins remained stuck in neutral through May, Hyperliquid emerged as one of the market’s biggest surprises. Its native token, HYPE, soared more than 300% in just seven weeks, daily trading volumes hit the billion-dollar mark, and the project entered the ranks of the world’s largest crypto assets. What’s behind Hyperliquid’s meteoric rise, and does the rally have room to run?
In a period when top altcoins barely moved, Hyperliquid carved out its own bullish path. On May 26, HYPE set a new all-time high at $39.93, after launching from just $9.36 in early April. By May 27, the token was still holding strong near $38.5, even after a modest pullback, locking in a 47% gain for the week alone.
Trading activity has been consistently robust, with 24-hour volumes hovering around $345 million. With a market capitalization of $12.5 billion, HYPE now ranks as the world’s 11th largest crypto asset. Key metrics are all trending upward: open interest recently reached $10.1 billion, and daily trading fees hit a record $5.6 million.
Hyperliquid reached new all-time highs again:
+ Open interest: $10.1B
+ 24h fees: $5.6M
+ USDC TVL: $3.5BWelcome to all new members of the ecosystem. pic.twitter.com/AoWVPRINGA
— Hyperliquid (@HyperliquidX) May 26, 2025
Further bolstering user confidence, Hyperliquid has integrated USD Coin (USDC) as the primary settlement asset, increasing liquidity. As a result, the platform now holds $3.5 billion in locked assets, drawing both institutional and retail traders into its growing ecosystem.
The Hyperliquid Engine: Next-Generation Blockchain, No VC Strings Attached
Launched in November 2024, Hyperliquid was built for fully on-chain trading of perpetual futures—without the compromises common on decentralized exchanges. Every transaction, order, and trade is processed directly on-chain, powered by a custom layer-1 blockchain.
The backbone of the platform consists of two proprietary systems: HyperBFT and HyperEVM. HyperBFT, a consensus protocol inspired by Meta’s LibraBFT, enables the blockchain to process up to 2 million transactions per second, with block finality under one second and the ability to handle 100,000 orders every second during peak periods.
With HyperEVM, the platform achieves full Ethereum Virtual Machine compatibility, so developers can deploy Ethereum-based smart contracts while enjoying dramatically lower fees and faster execution times.
Hyperliquid’s trading offering spans perpetual futures on a range of major assets, including Bitcoin, Ethereum, Avalanche, Solana, and Sui. Users can trade with up to 50x leverage, with no need to hold the underlying asset. Account creation is streamlined: a wallet-based login is all that’s needed, and no KYC is required—a rare stance that appeals to privacy-minded traders, though it could raise regulatory scrutiny in certain regions.
Besides derivatives, Hyperliquid also supports spot trading via its HIP-1 token standard, which mirrors Ethereum’s ERC-20 but applies stricter requirements for listings—discouraging spam and low-quality projects. Another key feature, Vaults, allows users to allocate funds to traders or algorithmic strategies in a fully non-custodial, transparent, and on-chain manner.
Unlike most top crypto projects, Hyperliquid has never accepted venture capital funding. Its team frames this not as a shortfall but as a deliberate strategy—emphasizing independence, resilience, and a focus on building infrastructure for the long haul rather than catering to VC-driven, short-term hype.
Hyperliquid’s rapid evolution is underscored by a series of key events that have elevated its reputation in both retail and institutional circles. On May 23, Hyperliquid Labs entered the regulatory conversation for the first time, submitting two public comment letters to the U.S. Commodity Futures Trading Commission. The letters advocated for a regulatory approach that supports decentralized infrastructure while maintaining important safeguards, signaling the project’s intention to help shape the future of 24/7 crypto markets and perpetual futures.
The market’s response was immediate—HYPE jumped 15% that day, reflecting growing investor confidence in Hyperliquid’s stance on compliance and long-term viability.
The exchange’s tech stack has also seen significant upgrades. In February, the integration of HyperEVM brought full Ethereum compatibility, allowing Ethereum-native smart contracts to run directly on Hyperliquid. This laid the groundwork for seamless integrations with other stablecoins, including Tether (USDT), making it easier for users to move capital, diversify strategies, and access deep liquidity pools across multiple networks.
High-profile traders have taken notice. Last week, derivatives specialist James Wynn made headlines by opening a $1.25 billion long position on Bitcoin via Hyperliquid—one of the largest on-chain derivatives trades to date. The network handled the massive trade smoothly, underlining the platform’s ability to support institutional-scale activity without latency or performance issues.
Retail engagement has ramped up as well. Throughout May, the Hyperliquid community was abuzz with speculation about a second HYPE token airdrop. With 38% of the token supply still unallocated, users have begun closely monitoring on-chain activity to gauge their eligibility. This surge in activity echoes the momentum seen during the original airdrop in November 2024, with wallet creation and cross-chain transactions hitting new highs as both new and returning users join the ecosystem.
HYPE Price Outlook: Rallying Into Uncharted Territory, but Headwinds Remain
Hyperliquid’s strong May rally has pushed HYPE into true price discovery territory. On the HYPE/BTC weekly chart, the token is at all-time highs against Bitcoin—a feat rarely seen for altcoins when so many competitors are stuck below key resistance levels.
However, further upside may not come as easily. According to Messari researcher Defi Monk, Hyperliquid may be reaching a saturation point with retail traders. He notes that the project captured 20% of Binance’s volume share during a unique market window, but pushing further into high-frequency and institutional trading could be much tougher. Latency requirements and the need to attract professional trading firms present real challenges.
There’s actually one $HYPE bear case I see very few people mention.
The idea that Hyperliquid is close to maxing out retail taker flow onchain and that getting from 20% of Binance’s volume share to 50% will be a much harder path than getting from 0 to 20%.
This is because… https://t.co/Iw4c7akhxb
— MONK (@defi_monk) May 18, 2025
“Getting from 20% to 50% of Binance’s volume share will be a much harder path,” Defi Monk observes, pointing out that any new competitor must now go head-to-head with Hyperliquid’s liquidity, infrastructure, and entrenched user base. In his words, “Now the bar is Hyperliquid itself.” Future growth may depend more on the platform’s ability to defend its turf against rising competitors like GTE_XYZ than on rapid expansion alone.
Near-term technical forecasts are cautious. According to models from Coincodex, HYPE could fall over 22% in the next 30 days, potentially dropping to $28.50 by late June. Yet, broader market sentiment remains optimistic. The Fear & Greed Index sits at 74, pointing to heightened market appetite, while other sentiment indicators remain bullish.
Longer-term predictions vary, but the outlook is ambitious. Coincodex sees HYPE’s possible maximum for 2025 near $36.86, with a bullish scenario for 2026 projecting a high of $94.85—more than double current levels. By 2029, some forecasts envision HYPE hitting as high as $145.28 if current trends and adoption persist.
Of course, as with all crypto assets, price forecasts are subject to sudden shifts. Regulatory changes, platform security developments, and user behavior can rapidly alter the token’s trajectory. Traders should approach HYPE as they would any high-volatility digital asset—cautiously, and never investing more than they can afford to lose.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
