Hyperliquid's native token, HYPE, saw an impressive 23% surge this week, outpacing its rivals. Factors driving this rally include the USDH stablecoin launch, increased whale activity, growing institutional interest, and buzz around a possible HYPE ETF.
Hyperliquid made waves in the crypto markets this week, with its native HYPE token surging 23% and outperforming numerous assets in an otherwise volatile environment. This impressive performance stems from a powerful combination of ecosystem developments, major investor activity, and speculation surrounding potential institutional products.
One of the primary narratives surrounding Hyperliquid involves the ongoing competition to determine the official issuer of USDH, the platform’s native stablecoin. Major players including Paxos, Ethena Labs, Sky, Frax Finance, and Agora have all submitted competing proposals. This competition adds legitimacy and long-term growth potential to the Hyperliquid ecosystem, fueling demand for HYPE.
Another key factor behind HYPE’s rally is the increased accumulation by whale investors and growing institutional participation. BitGo recently announced support for HyperEVM, Hyperliquid’s underlying blockchain, enabling its qualified clients to access custody solutions. Additionally, Lion Group has reallocated $600 million from SOL and SUI into HYPE a clear sign of growing confidence from institutions and whales in the platform.
Meanwhile, speculation around a potential HYPE ETF managed by VanEck has further boosted the market. Reports suggest the asset manager is preparing to file for approval in the United States while planning an exchange-traded product (ETP) in Europe. If successful, this would provide institutional investors with direct exposure to HYPE, while channeling a portion of profits into token buybacks, further stimulating demand.
Currently, HYPE is trading at $55.80, extending its rise from the support zone of $47.00. The Relative Strength Index (RSI) sits at 67.64, approaching overbought levels—suggesting buyers remain in control but a short-term cooling is possible. The MACD remains bullish, with widening histogram bars confirming solid momentum.
While periodic corrections are possible, HYPE’s fundamentals and the increasingly robust institutional narrative continue to support its bullish momentum. Investors should closely monitor upcoming developments in the project and its ecosystem.
HYPE is attracting attention with its bullish momentum and growing investor interest. This has created favorable conditions for a potential new rally. Here’s how to take advantage on Zoomex:
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