The Hyperliquid price sees renewed bullish momentum, posting double-digit gains in the past week and breaking the broader downtrend in the crypto market. This is due to bullish fundamentals in the token’s ecosystem, including a rise in open interest on the decentralized exchange (DEX).
Why the hyperliquid price is rising
The Hyperliquid price is up over 58% in the past seven days, outpacing the broader crypto market as Bitcoin trades just below the psychological level of $90,000. This price increase is the result of an increase in prices Hyperliquid’s HIP-3 open interest. The DEX announced in a X message that open interest hit a record high of $790 million, driven recently by a surge in commodities trading.
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The exchange added that HIP-3 open interest is hitting new all-time highs every week, after being just $260 million a month ago. HIP-3 makes it possible for everyone to launch a custom perpetual market for crypto, commodities like gold and silver, and other assets like stocks. Thanks to this upgrade, the DEX is seeing increased trading activity, which has led to a rise in the Hyperliquid price.
The Hyperliquid price in particular has benefited from the precious metals boom, with the silver perpetuals market on the DEX seeing massive trading activity. CoinGecko data shows that the Silver Perpetuals market is the third largest traded in the last 24 hours, after Bitcoin and Ethereum, with a trading volume of just over $1 billion.
In one X messageJeff Yan, co-founder of Hyperliquid, noted that the DEX has achieved a major milestone by becoming the world’s most liquid venue for crypto price discovery. This came as he highlighted the order books for BTC offenders on Binance and its DEX. He added that Hyperliquid has also grown to become the most liquid platform for Traditional Financial Assets (TradFi) perpetrators.
Little selling pressure and enormous buying pressure for HYPE
In one X messageHyperliquid stakeholder Henrik noted that the Hyperliquid price is also rising as the heavy selling pressure subsides. On the other hand, HYPE is seeing significant demand, including from digital asset treasury companies such as Hyperliquid strategies. He further highlighted the upcoming Kraken HYPE listing, which is also bullish for the token. Meanwhile, Henrik stated that Hyperliquid dominates all trading metrics, including volume and open interest.
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The increase in DEX trading activity is also significant and bullish for the Hyperliquid price as the majority of fees earned through the protocol are earmarked for the Relief Fundwhich is used to buy back HYPE tokens on the open market. DeFiLlama data shows that the DEX is currently among the top five protocols in terms of fees generated in the last 24 hours.
At the time of writing, the Hyperliquid price is around $34, up more than 27% in the last 24 hours. facts from CoinMarketCap.
Featured image from Medium, chart from Tradingview.com