Hyperliquid’s native token HYPE reached a new all-time high Wednesday, fueled by record trading activity on the decentralized exchange, which is renowned for on-chain perpetual contracts.
The token climbed past $50, up roughly 8% in 24 hours, marking a 430% gain since April and a 15-fold increase from its November launch price of $3. The rally has been supported by Hyperliquid’s automated buyback mechanism, which absorbs tokens from circulation and sustains upward price momentum.
Trading Activity Breaks Records
According to DefiLlama, Hyperliquid’s derivatives volume hit $357 billion in August, up from $319 billion in July and nearly ten times higher than a year ago. Spot trading volumes also set new records, exceeding $3 billion for the week ending 24 August (Blockworks).
The protocol earned $105 million in trading fees in August, the highest monthly total this year. Much of this revenue is deployed through the Assistance Fund, which purchases HYPE on-chain. Since its January launch, the fund’s holdings grew from 3 million to 29.8 million tokens, valued at over $1.5 billion.
Institutional Adoption and Analyst Insights
Digital asset custodian BitGo added support for Hyperliquid’s HyperEVM network, enabling institutional access to HYPE and related applications.
ByteTree analysts Shehriyar Ali and Charlie Morris praised Hyperliquid as a “powerhouse” and the largest decentralized perpetual futures platform, citing strong fundamentals and record fee generation.
However, they noted potential risks: HYPE’s fully diluted valuation exceeds $50 billion, while only a third of tokens circulate, and upcoming token unlocks from November could introduce selling pressure. “Despite the recent surge, strong on-chain activity continues to support HYPE’s valuation,” the analysts said.
