In a surprising twist in the crypto landscape, HYPE, the native token of Hyperliquid, has ascended to become the fifth-largest digital asset by futures open interest. As of today, June 16, 2025, the combined dollar value of active bets on HYPE futures stands at a staggering $2.06 billion, outpacing even the lively dogecoin (DOGE), which trails at $1.83 billion. This surge underscores the growing allure of specialized blockchain solutions in a market often dominated by heavyweights like bitcoin (BTC), ether (ETH), and solana (SOL).
A New Contender in the Arena
Hyperliquid, a decentralized exchange built on its own Layer 1 blockchain, has quickly captured the spotlight by offering a robust on-chain perpetual futures market. According to Coinglass data, its HYPE token has carved out a significant niche, fueled by strategic economic incentives and a governance structure that empowers token holders. Last week alone, Hyperliquid accounted for 60% of the global on-chain perpetuals trading volume, which amounted to $94.3 billion. As explored in our recent coverage of Hyperliquid Token Leads Altcoin Rebound as Bitcoin Price Steadies, this trend highlights the resilience of altcoins amid market fluctuations.
A notable aspect of Hyperliquid’s model is its commitment to reinvesting 97% of trading fees into buying back HYPE, a move that adds consistent upward pressure on the token’s price. As Hyperliquid Hub highlighted on X, “92.78% of protocol revenue goes to buying back HYPE on the open market — over $1B annually in buybacks.”
The Underpinning Dynamics
The meteoric rise of HYPE isn’t merely a fluke. It’s a testament to the burgeoning interest in purpose-built blockchain platforms that offer more than just speculative trading. Hyperliquid’s innovative approach has attracted major firms and traditional finance entities, which are now actively trading on HyperCore’s Central Limit Order Books (CLOBs), contributing to unmatched liquidity in the crypto space.
Notably, HYPE’s recent price rally — a fourfold increase to a record $44 within three months — reflects the token’s growing demand. This price surge coincided with booming open interest and annualized funding rates that soared past 100% at one point, indicative of a bullish sentiment and leveraged bets on the token’s future prospects. For a deeper dive into the market dynamics affecting similar tokens, see our coverage of XRP Price Whipsaws in Volatile Trading Session Amid Broader Market Slide.
The Bigger Picture
But what does this mean for the broader crypto market? HYPE’s ascendancy raises intriguing questions about the trajectory of crypto investments. With traditional financial institutions dipping their toes into the decentralized waters, the lines between conventional and crypto finance are blurring. HYPE’s climb could signal a shift where niche platforms start to rival, or even eclipse, the more established players in terms of innovation and market share.
However, this ascent isn’t without its challenges. The crypto market is notoriously volatile, and while HYPE’s current trajectory is promising, sustainability remains a key concern. Analysts caution that while the token’s fundamentals are strong, external factors such as regulatory developments and broader market sentiment could introduce unforeseen hurdles.
Looking Ahead
As we move deeper into 2025, the crypto world watches keenly to see if HYPE can maintain its momentum. The involvement of traditional financial players may prove to be a double-edged sword, potentially stabilizing the market but also subjecting it to the whims of broader economic trends.
In any case, Hyperliquid’s success story is far from over. Its impact on the crypto ecosystem continues to unfold, challenging the status quo and offering a glimpse into a future where decentralized finance might just become the new norm. Keep your eyes peeled — the crypto arena is as dynamic as ever, and HYPE’s journey is a narrative worth following.
Source
This article is based on: Hyperliquid’s HYPE Becomes Fifth Largest Token in Futures Trading; XRP Remains Ahead
Further Reading
Deepen your understanding with these related articles:
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- RWA token market grows 260% in 2025 as firms embrace regulating crypto
- Altcoins With Massive Gains and New ATHs as Bitcoin Flirts With $110K (Market Watch)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
