Hyperliquid’s native token, HYPE, has seen a remarkable surge to a new record high, driven by increased trading activity and open interest on the platform. This surge reflects the broader market trend following Bitcoin’s recent price milestone and coincides with Hyperliquid’s response to regulatory discussions with the US Commodity Futures Trading Commission (CFTC).
Open interest on Hyperliquid is nearing the $12 billion mark, with a reported $9.4 billion on May 23. This represents a 53% increase from the platform’s previous peak of around $6 billion earlier in the month. Open interest tracks the total number of active futures and perpetual contracts, often rising in response to market sentiment. With Bitcoin’s price surpassing $111,000 on May 22, investor interest in derivatives has grown, leading to a surge in trading activity on platforms like Hyperliquid.
In response to regulatory discussions with the CFTC, Hyperliquid Labs has submitted two comment letters addressing the agency’s inquiries on perpetual derivatives and 24/7 crypto trading. The company emphasized its decentralized infrastructure that promotes transparency, self-custody, and composability, key features of on-chain perpetual contracts. Hyperliquid highlighted its continuous liquidity, real-time collateral management, automated liquidations, and round-the-clock trading capabilities, along with decentralized infrastructure and immutable audit trails.
The company’s regulatory engagements and platform advancements have contributed to HYPE’s climb to a new all-time high. The token has surged over 12% in the last 24 hours, reaching a high of over $37, with a 95% increase in the past month. However, not all traders have profited from this rally. SpotOnChain reported that a large whale shorted 1.875 million HYPE tokens, worth over $57 million, at 5x leverage. As prices rose, the whale closed their position at a loss of $23.5 million, nearly wiping out their initial $30.5 million USDC deposit.
Overall, Hyperliquid’s recent developments and regulatory engagements have propelled HYPE to new heights, showcasing the platform’s growth and resilience in the decentralized trading space.