What is expected in the development of HYPE?

Hyperliquid’s roadmap is focused on growing its ecosystem and bringing in institutional investors.

1. USDH Stablecoin Launch (Q4 2025) – Choosing the issuer with plans to share revenue.
2. Native USDC Integration (October 2025) – Circle’s USDC fully launching on HyperEVM.
3. Permissionless Perpetual Markets (HIP-3) – Community can list new assets by staking.
4. HyperEVM Upgrades (Q4 2025) – CoreWriter release to improve app interoperability.
5. Institutional Custody & ETFs – FalconX custody and VanEck staking ETF in progress.

Deep Dive

1. USDH Stablecoin Launch (Q4 2025)

Overview:
Hyperliquid is finalizing who will issue its native stablecoin, USDH. Three companies—Ethena, Paxos, and Frax Finance—have submitted proposals. Ethena’s offer stands out by promising to use 95% of reserve interest to buy back HYPE tokens, supported by BlackRock’s BUIDL fund (HYPERDailyTK). Validators voted on September 14 to approve Ethena’s plan, with the switch expected by late 2025.

What this means:
This is positive for HYPE because USDH can provide steady liquidity, increase fee income, and reduce HYPE’s circulating supply through buybacks. However, there’s a risk of regulatory challenges related to the stablecoin’s reserve backing.

2. Native USDC Integration (October 2025)

Overview:
Circle is testing its USDC stablecoin on Hyperliquid’s HyperEVM mainnet, aiming for full integration to enable very fast cross-chain transactions. A recent $4.6 million HYPE purchase by a wallet linked to Circle hints that this launch is near (Gate.io).

What this means:
This is positive because native USDC will make it easier for over 400 million PayPal and Venmo users to access Hyperliquid, improving liquidity. The key will be smooth technical implementation.

3. Permissionless Perpetual Markets (HIP-3)

Overview:
HIP-3 allows anyone who stakes enough tokens to propose new perpetual trading assets, expanding the variety of markets on Hyperliquid. This follows successful testing with tokens like LINEA-USD that haven’t officially launched yet (HYPERDailyTK).

What this means:
This is neutral to positive—it could bring in more revenue by offering more trading options, but there’s a risk of lower-quality assets being listed. Keep an eye on staking activity and trading volumes after launch.

4. HyperEVM Upgrades (Q4 2025)

Overview:
The upcoming CoreWriter upgrade will let apps on HyperEVM directly access HyperCore’s liquidity, making it easier to build complex financial products like derivatives and lending services. Partnerships with Gelato and Stargate aim to improve cross-chain automation (CoinMarketCap).

What this means:
This is positive for ecosystem growth, encouraging developers to build on Hyperliquid. However, delays in integrating third-party services could slow adoption.

5. Institutional Custody & ETFs

Overview:
FalconX is launching custody and staking services for HYPE tokens, while VanEck is developing a European staking ETF. These moves support Hyperliquid’s $14 billion open interest and growing institutional trading volume (Bitrue).

What this means:
This is positive because it can reduce selling pressure and help establish HYPE as a trusted, blue-chip digital asset. Still, regulatory approval for ETFs remains a challenge.

Conclusion

Hyperliquid’s roadmap strikes a balance between decentralized finance innovation and attracting institutional investors, anchored by the USDH stablecoin launch and USDC integration. Its revenue-sharing model and low fees position HYPE for steady demand, though risks around scaling and regulation remain.

Will Hyperliquid’s hybrid centralized/decentralized exchange model change the way derivatives are traded? Watch open interest and stablecoin inflows for signs.

What updates are there in the HYPE code base?

Hyperliquid’s latest updates focus on making its platform more connected across blockchains and ready for big institutional players.

1. Cross-Layer Composability (June 2025) – Made it easier for different parts of Hyperliquid’s system to work together smoothly.
2. HIP-3 Auction Mechanism (Testnet, June 2025) – Launched a flexible auction system for creating custom markets with adjustable fees.
3. Bitgo Custody Integration (June 25, 2025) – Added secure, institutional-grade asset storage options.

Deep Dive

1. Cross-Layer Composability (June 2025)

What happened: Hyperliquid updated its platform so that Hypercore’s order books and Hyperliquid’s smart contracts on the Ethereum Virtual Machine (EVM) can now share data directly. This means protocols like Hyperlendx can interact with trading positions without complicated workarounds.

Why it matters: Developers can now build decentralized apps (dApps) that use Hyperliquid’s liquidity pools for lending, options trading, or automated strategies more easily. This reduces risks and makes it simpler for different protocols to work together.

Impact: This is a positive development for Hyperliquid (HYPE) because it makes the platform more attractive for DeFi projects, leading to deeper liquidity and more innovative trading products.
(NullTX)

2. HIP-3 Auction Mechanism (Testnet, June 2025)

What happened: Hyperliquid introduced HIP-3, a new auction system that lets users create custom markets with flexible fee structures—fees can go as high as 50%, and other parameters can be tailored.

Why it matters: Projects like Hyperunit (focused on leveraged equities) and Ethena Labs (trading USDe stablecoins) are testing this system. It allows new types of assets to be traded without needing centralized approval.

Impact: This update is neutral for HYPE in the short term but promising long term. It broadens the kinds of products Hyperliquid can offer, though high fees might slow adoption until they’re optimized.
(The Block)

3. Bitgo Custody Integration (June 25, 2025)

What happened: Hyperliquid integrated Bitgo’s custody services for HYPE tokens on HyperEVM. This means institutions can securely store their tokens and still participate in governance.

Why it matters: The update included smart contract changes to support multi-signature wallets and audit trails, which are important for regulatory compliance.

Impact: This is a strong positive for HYPE because it opens the door for institutional investors to enter Hyperliquid’s ecosystem, potentially increasing total value locked (TVL) and trading activity.
(Hyperliquid Block Explorer)

Conclusion

Hyperliquid is focusing on scaling its infrastructure and attracting institutional users by improving cross-chain compatibility, offering customizable markets, and providing secure custody options. These moves position it well to capture a larger share of the derivatives market as decentralized finance (DeFi) continues to grow.

Could these cross-layer innovations make Hyperliquid the go-to platform for settling complex financial products?

Why did the price of HYPE fall?

Hyperliquid (HYPE) dropped 8.1% in the last 24 hours, underperforming the overall crypto market, which fell by just 0.68%. This decline comes after recent price highs, increased risks from leveraged trading, and mixed technical signals.

1. Leveraged ASTER Contracts Trigger Sell-Offs – The introduction of 3x leverage trading caused volatility and forced some traders to sell.
2. Technical Breakdown – The price fell below important support levels, indicating short-term downward momentum.
3. Market Caution – Altcoin trading slowed as Bitcoin’s market share remained steady.

Deep Dive

1. High-Risk Leverage Activity (Bearish Impact)

Overview:
On September 19, Hyperliquid launched ASTER contract trading with up to 3x leverage, warning users about “low liquidity and high volatility risks.” After the launch, ASTER’s price jumped 92.55% but quickly became volatile, leading to $17 million in forced liquidations (MEXC).

What this means:
The warning proved accurate as traders using high leverage were forced to sell, pushing HYPE’s price down. Trading derivatives like these often increase price swings. Hyperliquid’s 24-hour perpetual contract volume rose 70.6% to $810 billion, showing many leveraged positions were closed out.

What to watch:
How stable ASTER remains and whether Hyperliquid changes its risk settings. More liquidations could cause further selling pressure.

2. Technical Breakdown (Mixed Signals)

Overview:
HYPE’s price fell below its 7-day simple moving average (SMA) of $55.54 and tested a key support level at $47.69, known as the 61.8% Fibonacci retracement. The Relative Strength Index (RSI) dropped to 56.84 from overbought levels, while the MACD indicator showed some positive signs but lacked strong momentum.

What this means:

• Bearish: Losing the $52–$54 support zone, which now acts as resistance, suggests short-term weakness.
• Bullish: The 30-day SMA at $49.59 and the 200-day exponential moving average (EMA) at $36.50 are still holding, indicating longer-term strength.

Key level to watch:
If the price falls below $47.69, it could drop further to $44.51, the 78.6% Fibonacci retracement level.

3. Altcoin Momentum Fades (Neutral Impact)

Overview:
The Altcoin Season Index, which measures how altcoins are performing relative to Bitcoin, dipped slightly by 2.56% in 24 hours. Bitcoin’s dominance stayed steady at 57.1%. Although HYPE gained 15.76% over the past 30 days—outperforming Bitcoin’s 3.57% gain—profit-taking increased after its all-time high of $57.38 on September 12.

What this means:
Investors moved some funds into safer assets like Bitcoin and Ethereum amid a neutral market mood (Fear & Greed Index at 48). HYPE’s 24-hour trading volume jumped 70.6% to $326 million, indicating recent selling pressure.

Conclusion

HYPE’s recent price drop reflects a mix of high-risk leveraged trading, technical profit-taking, and a slowdown in altcoin enthusiasm. Despite this, Hyperliquid’s core strengths—such as integration with Circle’s USDC stablecoin and backing from VanEck’s ETF—remain solid. Traders are now reassessing risks after a strong 90-day rally of 45.94%.

Key watch: Will HYPE hold above the $47.69 Fibonacci support, or will leveraged trading push prices lower? Keep an eye on Hyperliquid’s ASTER contract liquidity and Bitcoin’s price movements for clues on the market’s direction.

What could affect the price of HYPE?

Hyperliquid’s price is caught between strong tokenomics that reduce supply and the competitive pressures of the decentralized finance (DeFi) market.

1. Buyback Focus – 97% of fees go toward buying back HYPE tokens, which reduces the available supply.
2. Stablecoin Competition – Proposals from Paxos and Circle for USDH stablecoins could change how HYPE is used.
3. Leverage Risks – With $1.4 billion in open trading positions, there’s a risk of big price swings from forced liquidations.

Deep Dive

1. Buyback Mechanics & Tokenomics (Positive for Price)

Overview:
Hyperliquid uses 97% of its fees to buy back HYPE tokens, either burning them or redistributing them. In August 2025, $106 million in fees went toward buybacks, following $31 million in July. So far, about 30 million tokens—around 9% of all circulating HYPE—have been taken out of the market.

What this means:
This creates scarcity, which can support the token’s price. For every $1 billion in monthly trading volume, about 2.5 million HYPE tokens are removed from circulation. But since this depends on ongoing trading activity, a slowdown in derivatives trading (which dropped 42% month-over-month in September 2025) could reduce buyback effectiveness.

2. Stablecoin Adoption & Ecosystem Growth (Mixed Outlook)

Overview:
Circle is testing its USDC stablecoin on Hyperliquid’s HyperEVM platform, while Paxos proposes USDH, which would use 95% of its reserve earnings to buy back HYPE tokens. Additionally, VanEck’s HYPE staking ETF shows growing institutional interest.

What this means:
If stablecoins like USDH gain traction, HYPE could become a key liquidity hub. However, competing proposals (such as Frax Finance’s USDH) risk splitting attention and resources. Paxos’ plan (details) would directly increase buybacks, potentially boosting HYPE’s value.

3. Derivatives Market Saturation & Leverage (Potential Downside)

Overview:
Hyperliquid’s open interest—the total value of active trading positions—reached $1.4 billion in September 2025. New 3x leverage products (like WLFI and LINEA) have coincided with more liquidations. The platform’s governance is controlled by 21 validators, which is more centralized compared to competitors like dYdX.

What this means:
While Hyperliquid holds a strong position in perpetual decentralized exchange (DEX) trading with 70% market share, high leverage can lead to large forced sell-offs during volatile market swings. For example, $17 million in liquidations occurred during a 2.5x price move in XPL, which could cause cascading price drops.

Conclusion

The future of HYPE depends on balancing the benefits of buyback-driven scarcity with the risks from derivatives market volatility and regulatory developments. Keep an eye on the USDH governance vote—if Paxos wins, 95% of reserve yields will go to buybacks—and on Bitcoin’s price correlation. A drop below $110,000 could increase pressure on leveraged altcoins. The key question: can Hyperliquid’s fee-driven buyback system stay ahead of other DeFi competitors?

What are people saying about HYPE?

The Hyperliquid (HYPE) community is buzzing with excitement and caution as the token shows signs of movement. Here’s what’s trending right now:

1. Technical analysts targeting $70 after HYPE breaks key resistance levels
2. Debates about undervaluation heat up as platform activity hits new records
3. Whale activity intensifies with large leveraged long and short positions
4. Speculation about Airdrop Season 2 drives more engagement in the ecosystem

Deep Dive

1. Bullish breakout confirmed by @cryptonary

"HYPE is holding steady in the high $50s after breaking through $49 resistance. If it keeps support between $52-$53, targets are $60-$70."
– @cryptonary (283K followers · 1.2M impressions · Sept 13, 2025)
View original post
What this means: This is a positive sign for HYPE. The breakout matches momentum indicators, suggesting big investors are buying in. The $52-$53 range is now a key support level to watch.

2. Undervaluation debate grows with @0xMojojo

"$HYPE at $57 with $650M in 24-hour volume and $1.5B weekly volume – many aren’t bullish enough."
– @0xMojojo (91K followers · 420K impressions · Sept 12, 2025)
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What this means: This is good news for HYPE. Trading volumes are comparable to major centralized exchanges, and the platform’s daily revenue of $3.7 million is being used to buy back tokens, supporting the price.

3. Whale Alert: Mixed leveraged positions

"One whale opened a $4.75 million long position at $42.25 with 5x leverage, while another shorted $2.07 million at $45.52 with 10x leverage."
– CoinGlass data (July 11-24, 2025)
View post
What this means: This is neutral for HYPE. Large investors are divided on the short-term price direction, showing some uncertainty despite strong fundamentals.

4. Airdrop Season 2 rumors from @HYPERDailyTK

"39% of tokens are still unallocated. With HyperEVM integrations coming, an airdrop could be on the way to boost ecosystem activity."
– @HYPERDailyTK (62K followers · 287K impressions · Sept 4, 2025)
View original post
What this means: This is generally positive for HYPE. Airdrops usually increase network use and token movement, though they can also lead to selling pressure after distribution.

Conclusion

Overall, sentiment around Hyperliquid (HYPE) is cautiously optimistic. Technical signals, strong platform usage, and ecosystem growth point to potential gains. While large investors (whales) are split on short-term moves, everyday traders are focused on the platform’s $10.6 billion open interest and over 180 teams building on it. Keep an eye on the $52-$53 support level—holding this could pave the way for new all-time highs before the end of the year.

What is the latest news about HYPE?

Hyperliquid is gaining momentum in decentralized finance (DeFi) with new products and support from big institutions. Here’s the latest update:

1. ASTER Contracts Launch (September 19, 2025) – Introduced high-leverage trading, but liquidity risks remain.
2. Circle Expands USDC Integration (September 13, 2025) – Native stablecoin support improves liquidity.
3. VanEck Supports Hyperliquid (September 11, 2025) – A staking ETF shows growing institutional confidence.

Deep Dive

1. ASTER Contracts Launch (September 19, 2025)

Overview:
Hyperliquid introduced ASTER perpetual contracts, allowing traders to take positions with up to 3 times leverage, meaning they can borrow to increase their potential gains or losses. After launch, ASTER’s price jumped 92%, but this also caused $17 million in forced sell-offs (liquidations) due to market volatility and limited liquidity.

What this means:
This is a mixed signal for Hyperliquid (HYPE). Offering new trading options can attract more users, but the low liquidity means big price swings could trigger more forced sell-offs, which might scare some traders away. For ASTER to succeed long-term, the market needs to become deeper and more stable. (MEXC)

2. Circle Expands USDC Integration (September 13, 2025)

Overview:
Circle, the company behind the USDC stablecoin (a digital dollar pegged to the U.S. dollar), started testing native USDC on Hyperliquid’s HyperEVM platform. They also made a $4.6 million purchase of HYPE tokens, signaling stronger collaboration. USDC already makes up 95.6% of Hyperliquid’s $6.1 billion daily stablecoin trading volume.

What this means:
This is positive news for HYPE. Integrating USDC smoothly makes Hyperliquid more attractive to institutional traders and supports cross-chain DeFi activities (transactions across different blockchain networks). Circle’s involvement adds credibility and could bring more investment into the platform. (Gate.io)

3. VanEck Supports Hyperliquid (September 11, 2025)

Overview:
VanEck, a major investment firm, launched a staking exchange-traded fund (ETF) linked to HYPE. This ETF allocates part of its $24.7 billion crypto assets under management to Hyperliquid’s ecosystem. This move aligns with Hyperliquid’s strong August revenue of $106 million and its 70% market share in decentralized exchange (DEX) perpetual contracts.

What this means:
This is a strong positive for HYPE. Institutional investments through ETFs can provide steady demand and reduce selling pressure. VanEck’s support also signals confidence in Hyperliquid’s regulatory compliance and ability to scale, boosting its reputation for the long term. (Bitrue)

Conclusion

Hyperliquid is growing by offering high-risk, high-reward products like ASTER contracts, deepening its stablecoin integration with USDC, and gaining institutional backing from firms like VanEck. While the volatility from leveraged trading poses risks, revenue-sharing buybacks and ETF investments create a promising outlook. The key question remains: can Hyperliquid’s ecosystem growth keep pace with the risks of speculative trading?