Hyperliquid (HYPE) hit a series of new all-time highs (ATH) on the price chart this week, thanks to media attention and ETF flows.
On May 29, the altcoin hit a new all-time high of $67.5, with the market cap surpassing $17 billion.
This briefly reversed Dogecoin (DOGE), as THRESHING has become the ninth largest crypto by market capitalization and has firmly joined the top 10. This would make Tron (TRX) and Solana (SOL) the next targets.
At the time of writing, however, the altcoin gave back some gains and traded at $64.5 and ranked 10th in terms of market size on CoinMarketCap.
HYPE is up 70% since mid-May and has jumped 3x from February’s low of $20. May’s parabolic rally was sparked by Coinbase’s USDC deal and supported by the strong ETF flows.
But Friday’s pomp was a complete surprise.
Hyperliquid predicts DeFi criminals in the United States
Notably, on Friday, the United States Commodity Futures Trading Commission (CFTC) approved the first Bitcoin perpetual futures (perps) contract for Kalshi and Coinbase. Perps allow users to gain exposure to assets with limited capital.
The success of hyperliquid relied on crypto players. Later it diversified into commodity markets or RWA (real world assets), pre-IPO markets and now prediction markets.
In fact, criminals are the most dominant segment in terms of volume and open interest across the entire crypto market.
Therefore, Hyperliquid’s moat quickly elevated it to become a leading challenger to Binance, Coinbase, and even major traditional players like Nasdaq. Some analysts claimed that because crypto hackers were not legal, US citizens were using VPNs to use Hyperliquid.
Assuming this is true, the CFTC-approved authors would have been deemed negative for hyperliquid. Indeed, Coinbase and Kalshi are now regulated rivals.
But Hyperliquid Policy Center (HPC), the research and lobbying arm of the decentralized exchange (DEX), downplayed the threat. In fact, HPC CEO Jake Chervinsky saw it as a positive update and noted:
This is still an expected and necessary first step on the long road to enabling DeFi players in the United States.
Currently, the rules apply to people on centralized exchanges but not to DEXs. It is interesting to note that the update, including a series of HYPE without stakedidn’t deter the bulls. If the bulls continue to defend $60 as support, the next upside targets could be $70 and $80.
Final summary
- HYPE briefly moved DOGE to the ninth largest crypto asset after hitting an all-time high of $67.5.
- Hyperliquid sees early US crypto players CEX as the “first step” of DeFi players and not a threat to the platform.
