What is expected in the development of HYPE?

Hyperliquid’s roadmap is focused on growing its decentralized derivatives platform, expanding its ecosystem, and forming key partnerships.

1. Permissionless Perpetual Futures via HIP-3 (Ongoing)
2. USDH Stablecoin Integration (Q4 2025)
3. HyperEVM Expansion (2026)
4. SPAC Merger & $1 Billion Fundraise (Late 2025)

In-Depth Look

1. Permissionless Perpetual Futures via HIP-3 (Ongoing)

Overview
On October 13, 2025, Hyperliquid launched the HIP-3 upgrade. This allows anyone to create perpetual futures markets by staking 500,000 HYPE tokens. Projects like @Ventuals and @Felixprotocol are already building on this new system.

What this means
Positive: This could increase trading fees and bring more variety to the market as outside platforms use Hyperliquid’s technology.
Risks: There are concerns about validator centralization since only 16 nodes run the network, and some market listings might be low quality.

2. USDH Stablecoin Integration (Q4 2025)

Overview
Paxos and Frax Finance plan to launch USDH, a stablecoin designed to meet regulatory standards. Most of the earnings from USDH reserves (95%) will be used to buy back HYPE tokens.

What this means
Positive: This improves how capital is used and creates a mechanism that reduces the total supply of HYPE over time, potentially increasing its value.
Risks: Regulatory challenges around stablecoins could slow down this integration.

3. HyperEVM Expansion (2026)

Overview
Hyperliquid plans to connect HyperEVM with popular decentralized finance (DeFi) protocols like Gelato and Stargate, and support new uses for NFTs. They are also developing CoreWriter, a tool to enable smooth communication within the HyperCore-EVM environment.

What this means
Positive: This will improve interoperability across different blockchains and attract more developers.
Risks: The small size of Hyperliquid’s team and competition from Ethereum Layer 2 solutions could make execution difficult.

4. SPAC Merger & $1 Billion Fundraise (Late 2025)

Overview
Hyperliquid Strategies is working to complete a merger with Nasdaq-listed Sonnet BioTherapeutics and SPAC Rorschach I LLC. This deal aims to raise $1 billion to buy back HYPE tokens and support ecosystem growth.

What this means
Positive: Institutional support could stabilize HYPE’s price and fund large-scale token repurchases.
Risks: Market volatility remains a concern, with HYPE’s price down 35% over the past 60 days.

Conclusion

Hyperliquid is focusing on decentralization through HIP-3, integrating a regulated stablecoin, and securing institutional partnerships to strengthen its position in perpetual futures trading. While these upgrades and buybacks may boost demand, regulatory hurdles and a crowded derivatives market present challenges. The big question is whether Hyperliquid’s permissionless approach can outperform centralized competitors like Binance in 2026.

What updates are there in the HYPE code base?

Hyperliquid’s technology is advancing quickly, with important updates that improve decentralization, ecosystem growth, and user experience.

1. Permissionless Perps via HIP-3 (October 13, 2025) – Developers can now create perpetual markets by staking HYPE tokens.
2. HyperEVM Integration (Q4 2025) – Added support for smart contracts and decentralized governance.
3. HyperSwap UX Overhaul (September 7, 2025) – Made cross-chain swaps and liquidity management easier and faster.

Deep Dive

1. Permissionless Perps via HIP-3 (October 13, 2025)

Overview: HIP-3 lets anyone launch perpetual futures markets on HyperCore by staking 500,000 HYPE tokens. This removes centralized control over market creation. To ensure safety, deployers must meet on-chain rules, and there are protections like penalties for bad actors and limits on open interest. After the announcement, HYPE’s price jumped 12.33% (Source).

What this means: This is positive for HYPE because it encourages more developers to build on Hyperliquid, growing the ecosystem. More staking reduces the number of tokens available on the market, while new markets increase trading activity and fees.

2. HyperEVM Integration (Q4 2025)

Overview: Hyperliquid’s blockchain now supports Ethereum-compatible smart contracts and decentralized governance. This allows developers to easily create decentralized apps (dApps), lending platforms like HyperLend, and yield farming protocols. Over 180 teams are reportedly building on HyperEVM (Source).

What this means: This update is somewhat positive for HYPE. It increases the token’s use as the fuel (gas) for transactions on HyperEVM. However, the real impact depends on how many developers move their projects here. In the long run, it helps position Hyperliquid as a hub for decentralized finance (DeFi) across multiple blockchains.

3. HyperSwap UX Overhaul (September 7, 2025)

Overview: HyperSwap’s user interface was redesigned to make cross-chain swaps quicker and liquidity management simpler. Early tests showed about a 15% reduction in slippage (the difference between expected and actual trade prices). New features include one-click portfolio rebalancing and real-time fee tracking. This update came after Rabby Wallet integrated Hyperliquid perpetual contracts, making the platform more accessible (Source).

What this means: This is good news for HYPE because a smoother user experience attracts more retail traders, boosting platform usage and fee income. Since 97% of fees go toward buying back HYPE tokens, this supports the token’s value. Better liquidity also helps reduce price swings during large trades.

Conclusion

Hyperliquid’s recent updates focus on decentralization (HIP-3), scalability (HyperEVM), and ease of use (HyperSwap), all aimed at competing with centralized exchanges. These improvements strengthen the platform’s foundation, but it’s important to watch discussions around validator centralization and how staking affects HYPE’s circulating supply.

Could HIP-3’s permissionless approach make Hyperliquid the go-to platform for innovative derivatives?

What halted HYPE Arbitrum bridge?

Hyperliquid (HYPE) temporarily paused its Arbitrum bridge after a coordinated trade involving the POPCAT token caused its HLP vault to lose about $4.9 to $5 million. This loss triggered an automatic lock on the bridge, as explained by developers and reported in the media (Hyperliquid on CoinMarketCap, Defiant report).

1. The pause was a safety measure and the bridge was unlocked roughly 25 minutes later (Defiant report).
2. A trader used 19 different wallets to build a $20–$30 million leveraged long position on POPCAT, then removed a large buy wall, which caused many forced sell-offs and led to the $4.9 million loss in the HLP vault (Yahoo Finance coverage).
3. Other deposits and withdrawals were not affected, and funds remained safe according to Hyperliquid’s Discord admin. The lock was a protective feature of the Arbitrum bridge (Decrypt coverage).

Deep Dive

1. Why The Bridge Paused

Hyperliquid’s Arbitrum bridge has an automatic lock designed to protect users’ funds during unusual market events. Developer “iliensinc” confirmed the bridge was unlocked after internal checks showed no ongoing issues, and the Hyperliquid network itself remained operational (Defiant report). Decrypt also reported that only Arbitrum-based deposits and withdrawals were paused, and normal service resumed shortly after (Decrypt coverage).

What this means: The pause was a precautionary safety step, not a system failure. It helped prevent further problems while the team managed the situation.

2. The POPCAT Trade Setup

According to reports, a trader withdrew about $3 million in USDC, split it across 19 wallets, and opened leveraged long positions worth $26–$30 million on POPCAT. The trader then placed a large buy wall near $0.21 but later removed it. This caused the POPCAT price to drop sharply, triggering many forced liquidations and resulting in a $4.9–$5 million loss for Hyperliquid’s HLP vault (Yahoo Finance coverage, Coingape analysis).

What this means: The bridge pause was a response to a market manipulation event that stressed Hyperliquid’s liquidity system, prompting the automatic lock to protect users.

3. Scope And Risk Context

Media and community updates clarify that only the Arbitrum bridge was affected; other platform functions continued normally, and the bridge resumed shortly after the lock. This incident shows how limited liquidity and large, concentrated positions on perpetual decentralized exchanges (perp DEXs) can increase the risk of market manipulation, even when safeguards are in place (Decrypt coverage, CoinJournal commentary).

What this means: For users, the risk was limited to a brief pause in bridge activity. For platforms, it highlights the importance of having conservative safety measures and monitoring in place, especially in leveraged meme token markets.

Conclusion

The temporary pause of the HYPE Arbitrum bridge was a short, precautionary action triggered by a coordinated POPCAT trade that caused significant losses in Hyperliquid’s HLP vault. The bridge quickly reopened, other platform operations were unaffected, and this event underscores the value of automated safety features to protect users when leveraged markets face manipulation risks.

Why did the price of HYPE go up?

Hyperliquid (HYPE) increased by 6.01% in the last 24 hours, outperforming the overall crypto market, which dropped by -4.24%. This growth is driven by recent protocol upgrades, significant purchases by large investors (whales), and a strong token buyback program.

1. HIP-3 Protocol Upgrade (Positive Impact)
2. Whale Accumulation (Mixed Impact)
3. Buyback Momentum (Positive Impact)

Deep Dive

1. HIP-3 Protocol Upgrade (Positive Impact)

Overview: On October 13, Hyperliquid launched the HIP-3 upgrade, which allows anyone to create perpetual markets without needing special permission. Builders can now set up these markets by staking 500,000 HYPE tokens. This upgrade turns Hyperliquid into a decentralized “app store” for perpetual contracts (Yahoo Finance).

What this means: This upgrade strengthens Hyperliquid’s position as a leader in decentralized derivatives, currently handling 70% of decentralized exchange (DEX) perpetual trading volume. It also attracts more developers, increasing the usefulness and demand for HYPE tokens. The recent integration with HyperEVM smart contracts adds potential for long-term growth in the ecosystem.

What to watch: Adoption rates of new markets created after HIP-3 and how actively validators participate in governance decisions.

2. Whale Accumulation (Mixed Impact)

Overview: Large investors, known as whales, have been buying significant amounts of HYPE. For example, on July 24, a whale took a $4.75 million leveraged long position (5x leverage), and by August 17, wallet 0x7a26 held $25.6 million worth of HYPE (CoinGlass).

What this means: These big purchases show confidence in HYPE but can also cause price swings. While staking rewards (55% annual percentage yield) and buybacks help reduce selling pressure, having large amounts held by a few wallets can lead to sharp price drops if those holders decide to sell quickly.

What to watch: Trends in open interest (currently at an all-time high of $1.89 billion) and whale wallet activity for early signs of changes in liquidity.

3. Buyback Momentum (Positive Impact)

Overview: Hyperliquid uses 97% of its protocol fees (about $3.7 million daily) to buy back HYPE tokens, burning roughly 333,000 tokens each month. This deflationary approach has lowered the circulating supply by 2.1% since January 2025 (LeveX).

What this means: These buybacks create steady demand for HYPE, especially as derivatives trading volume has increased 79% month-over-month. The token’s price-to-earnings ratio is 3.39, which is attractive compared to Ethereum’s 22.1 and Solana’s 18.7.

What to watch: Daily fee income and how consistently buybacks are executed.

Conclusion

Hyperliquid’s recent price increase highlights its role as both a fast derivatives trading platform and a deflationary asset. While whale activity and protocol upgrades provide short-term momentum, the buyback program offers strong long-term support. Key point to watch: Can HYPE maintain its price above the 30-day simple moving average ($40.98) despite overall market weakness?

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What could affect the price of HYPE?

Hyperliquid’s price depends on upcoming protocol upgrades, the adoption of its stablecoin USDH, and trading activity from large investors (“whales”), which can cause big price swings.

1. HIP-3 Upgrade (Positive) – New permissionless perpetual markets could help the ecosystem grow.
2. Stablecoin USDH (Mixed) – Using USDH might increase buybacks of HYPE tokens but faces regulatory challenges.
3. Whale Trading (Volatile) – Large leveraged trades can cause sharp price movements.

In-Depth Look

1. Protocol Upgrades & Ecosystem Growth (Positive Impact)

What’s happening: The HIP-3 upgrade, launched in October 2025, lets developers create perpetual markets by staking 500,000 HYPE tokens. This move decentralizes Hyperliquid’s platform and, combined with HyperEVM’s smart contract features, could attract more developers and boost trading activity. Already, over 180 teams are building on Hyperliquid (DU09BTC).

Why it matters: Allowing anyone to create markets without permission opens up new possibilities like prediction markets and tokenized assets, increasing demand for HYPE. The staking requirement reduces the number of tokens available for trading, while sharing up to 50% of fees with market creators encourages participation. Still, competitors like Aster and Lighter are gaining ground, which could limit growth.

2. USDH Stablecoin & Regulatory Environment (Mixed Impact)

What’s happening: Hyperliquid’s stablecoin, USDH, plans to use 95% of its reserve earnings to buy back HYPE tokens (Ericonomic). Paxos and Native Markets are leading the development, with validators currently voting on proposals. Engagement with regulators like the CFTC in May 2025 has clarified some rules but also means more oversight.

Why it matters: If USDH gains widespread use, it could create a cycle where buybacks reduce HYPE supply, potentially increasing its price. However, regulatory hurdles under frameworks like MiCA and competition from established stablecoins like USDC and USDT—which are already popular on Hyperliquid—may slow adoption. Any regulatory crackdown on stablecoins or derivatives could negatively affect market confidence.

3. Whale Trading & Market Sentiment (Volatile Impact)

What’s happening: Large investors have taken multi-million dollar leveraged positions in HYPE, including a $19 million USDC deposit to accumulate tokens (Lookonchain). However, high leverage (10–20 times) increases the risk of forced sell-offs, as seen in November 2025 when Bitcoin’s price drop below $92,000 triggered $96 million in liquidations on Hyperliquid.

Why it matters: Whale buying can drive prices up, but sudden exits or forced liquidations can cause sharp declines. With the crypto Fear & Greed Index currently at “Extreme Fear” (15/100), the market is prone to sentiment-driven volatility.

Conclusion

Hyperliquid’s price will largely depend on how well the HIP-3 upgrade is adopted, the success of the USDH stablecoin, and the behavior of large traders. While protocol improvements and buybacks offer potential upside, regulatory challenges and leveraged trading risks remain significant. Will Hyperliquid’s validator-led governance keep pace with competitors who operate more centrally? Keep an eye on open interest, USDH inflows, and regulatory updates from the CFTC for clues on where the market is headed.

What are people saying about HYPE?

Conversations around Hyperliquid (HYPE) swing between excitement over potential gains and cautious skepticism from big investors. Here’s the latest buzz:

1. Positive technical outlook: Experts are eyeing price targets between $70 and $80 after HYPE broke through important resistance levels.
2. Growing platform activity: Users highlight increasing trading volumes, total value locked (TVL), and strong buyback programs.
3. Big investor moves: Large traders show mixed strategies, with short and long positions ranging from $2 million to $4.75 million.
4. Bold prediction by Arthur Hayes: A forecast of a 126x price increase is stirring excitement and fear of missing out (FOMO).

Deep Dive

1. @cryptonary: Bullish breakout confirmed

"HYPE surged past $49 resistance, now consolidating in high $50s. Momentum indicators (RSI breakout) suggest $60–$70 next."
– @cryptonary (93.4K followers · 45.9K posts · 2025-09-13 21:06 UTC)
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What this means: This is a positive sign for HYPE. The price has moved from a stable range into an upward trend, showing clear support and resistance levels that traders watch closely.

2. @greenytrades: Platform growth fuels optimism

"24H volume: $650M, 7D: $1.5B, 1M: $5.5B. New users + TVL growth weekly."
– @greenytrades (41.5K followers · 70.8K posts · 2025-08-23 23:28 UTC)
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What this means: The platform is seeing more activity and new users, which is a good sign of adoption. This growth supports Hyperliquid’s model where 97% of fees go back into buying HYPE tokens, helping to boost demand.

3. @johnmorganFL: Whales eye alternatives

"Hyperliquid price predictions strong, yet crypto whales prefer GambleFi utility."
– @johnmorganFL (35.1K followers · 553K posts · 2025-08-10 14:38 UTC)
View original post
What this means: Some large investors are cautious and are spreading their bets into other areas like GambleFi, which offers different uses. However, HYPE’s buyback system helps reduce selling pressure, balancing this out.

What is the latest news about HYPE?

Hyperliquid is currently experiencing significant activity driven by large traders and strong market momentum. Here’s a quick summary:

1. Whale’s $19.26M Zcash Short (November 18, 2025) – A big bet with high leverage is stirring discussions about liquidity and risk.
2. $18.9M Bitcoin Long After $7.1M Loss (November 17, 2025) – A large trader doubled down on Bitcoin, testing Hyperliquid’s market capacity.
3. HYPE Price Targets $52 Breakout (November 17, 2025) – Technical indicators suggest a bullish trend despite overall market uncertainty.

Deep Dive

1. Whale’s $19.26M Zcash Short (November 18, 2025)

Overview: A trader placed a highly leveraged short position on 31,698 ZEC (worth $19.26 million) through Hyperliquid. This trader, known for risky moves involving ZEC, XRP, and BTC, is currently facing losses due to volatile Zcash prices. This has led to over $3 million in forced liquidations and short squeezes.
What this means: This shows Hyperliquid is becoming popular for large-scale, professional-level trading of derivatives (contracts based on asset prices). However, such big bets can strain the platform’s liquidity and increase risk of cascading losses. More interest might bring in capital, but regulators could pay closer attention to these high-risk trades. (TokenTopNews)

2. $18.9M Bitcoin Long After $7.1M Loss (November 17, 2025)

Overview: A trader identified as 0x8d0E added $10 million in USDC (a stablecoin) to Hyperliquid and opened a 20x leveraged long position on Bitcoin worth $18.9 million, despite having lost $7.1 million earlier. This position could be liquidated if Bitcoin’s price drops by 5%, increasing market volatility.
What this means: These high-risk trades highlight Hyperliquid’s role in speculative markets where traders bet big on price moves. While this shows confidence in Bitcoin’s price rising, repeated losses might discourage smaller investors who worry about price swings caused by large traders. (CoinoMedia)

3. HYPE Price Targets $52 Breakout (November 17, 2025)

Overview: The price of Hyperliquid’s token, HYPE, is currently trading between its 50-day moving average ($41.78) and a support level at $35.50. Analysts have noted a bullish signal in the Relative Strength Index (RSI), suggesting $52 as the next potential price target if resistance is broken. However, if the price falls below $35.50, it could drop further to $30.
What this means: Despite overall market fear (with the CoinMarketCap Fear & Greed Index at 15, indicating strong fear), HYPE’s recent 6.26% gain in 24 hours shows it is holding up better than Bitcoin, which is declining. This suggests HYPE has some resilience, though broader economic challenges remain. (CoinMarketCap)

Conclusion

Hyperliquid is attracting large traders whose activity is driving liquidity and momentum in the derivatives market. However, the use of leverage (borrowing to increase trade size) also raises the risk of sharp losses that could impact the platform. The key question is whether institutional investments will support HYPE’s upward trend or if forced liquidations will cause setbacks. Keep an eye on the $35.50 support level and how HYPE’s price moves in relation to Bitcoin for important clues.