How HYPE Surged on Hyperliquid’s Growing Perpetual Futures Stardom
The post How HYPE Surged on Hyperliquid’s Growing Perpetual Futures Stardom appeared on BitcoinEthereumNews.com.
In brief Asset manager Grayscale said that Hyperliquid’s Hypercore product generated 80% of all on-chain perpetual futures reading volume in May. HYPE, the network’s native token, has soared 80% over the past month to $37.72. Hyperliquid’s usage has been partially driven by its massive airdrop last year, according to Messari Research Analyst Matthew Nay. HYPE, the native token of Hyperliquid, was a standout performer among altcoins in May, as traders flocked to the decentralized exchange’s perpetual futures offering, according to a report published by asset manager Grayscale on Monday. HYPE was recently changing hands around $37.72, a 14% increase over the past day, according to crypto data provider CoinGecko. Over the past 30 days, the token’s price has soared 80%. HYPE reached an all-time high of $39.68 just over a week ago. “Hyperliquid has seen consistently high organic usage and robust liquidity and should increasingly compete with centralized derivative exchanges like Binance and Bybit,” Grayscale’s analysts wrote, emphasizing Hyperliquid’s recent jump in market share. For years, the perpetual futures trading market has been dominated by centralized exchanges, which primarily operate outside of the U.S. Although Hyperliquid’s services are off limits in the U.S., exchanges like Coinbase are trying to get perpetual futures off the ground. Futures contracts allow a trader to speculate on an underlying asset’s price movements. Unlike traditional futures contracts that have a fixed expiry date, perpetual futures can be held indefinitely, as long as a trader maintains the proper margin requirements. Perpetual futures often support high amounts of leverage, as traders effectively borrow funds to amplify returns. However, traders risk losing margin that serves as collateral for borrowed funds. Hyperliquid is taking a product that’s popular among crypto-native traders and leveraging smart contracts, as a decentralized exchange, to try and make the service’s plumbing transparent. In…
