In times of market volatility, on-chain derivatives trading surges—and few platforms exemplify this trend better than Hyperliquid. Recently, both its trading volume and native token HYPE have reached all-time highs: cumulative trading volume has surpassed $1.5 trillion**, while HYPE briefly broke the **$45 mark, capturing the attention of traders, developers, and institutional investors alike.
This momentum isn't accidental. Behind the numbers lies a growing wave of interest from whales, retail traders, and notably—institutional players. In late June, major investment firms Galaxy and ManifoldTrading deposited a combined $30 million in USDC** into Hyperliquid and began accumulating HYPE tokens. Even more significantly, U.S.-listed company **Lion Group Holding Ltd. (LGHL)** allocated **$2 million toward purchasing HYPE at an average price of $37.30 per token.
These developments have reignited speculation across crypto circles: Could HYPE be the next Solana (SOL)? While SUI once held similar promise, HYPE is now being discussed in the same breath as top-tier layer-1 contenders.
Let’s explore what’s driving HYPE’s rise—and whether it can truly challenge established giants like SOL.
From Crisis to Comeback: The HYPE Price Journey
Unlike SUI’s relatively stable trajectory, HYPE has experienced dramatic swings—both upward and downward.
Back in March, Hyperliquid faced a severe setback when a large trader exploited platform mechanics, leading to millions in losses. The protocol responded with a controversial data rollback, triggering a crisis of trust. As a result, HYPE dropped from around $13 to nearly $10—a moment many believed would spell the end for Hyperliquid amid fierce competition from centralized exchanges like Binance, OKX, and Bybit.
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But by April, macroeconomic shifts—including evolving trade policies under Trump-era rhetoric—spurred renewed market activity. With increased volatility came new opportunities for derivatives platforms. Hyperliquid seized the moment. On May 23, HYPE surpassed its previous high of $32.30, reaching $33. By June 16, it hit an all-time peak of $45.59.
Now trading around $39, HYPE maintains a **market cap of approximately $13 billion and a fully diluted valuation (FDV) near $39 billion**, placing it firmly among the top 15 cryptocurrencies by market capitalization.
What’s Fueling HYPE’s Growth?
Three core factors are propelling HYPE’s ascent: platform-driven buybacks, institutional adoption, and strategic corporate treasury allocations.
🔹 Driver #1: Aggressive Token Buybacks & Ecosystem Incentives
Hyperliquid’s daily buyback mechanism is arguably the most powerful engine behind HYPE’s price stability and growth.
According to on-chain data from ASXN Data, Hyperliquid has been repurchasing HYPE tokens at a rate of $1.86 million per day over the past 30 days. These funds come directly from platform fees and are used to burn or redistribute HYPE, effectively reducing circulating supply and increasing scarcity.
With a total supply capped at 1 billion and about 330 million currently in circulation, these consistent buybacks create strong deflationary pressure—a key bullish signal for long-term holders.
Community analysts like Charlie.hl and supermeow.hl have applied traditional financial metrics—such as the “market cap to quarterly buyback” ratio—to estimate that HYPE could conservatively reach $76 per token if current trends continue.
Additionally, Hyperliquid’s Builder Code program incentivizes developers to build on its infrastructure by sharing in transaction fee revenues. This not only strengthens developer engagement but also fosters a sustainable ecosystem akin to Ethereum’s dApp economy or Solana’s rapid innovation cycle.
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🔹 Driver #2: Institutional Participation Goes Live
Just as early bets on Solana by firms like Multicoin Capital paid off handsomely, institutional investors are now placing strategic wagers on Hyperliquid.
On-chain monitoring platform Onchain Lens revealed that Galaxy and ManifoldTrading transferred $30 million in USDC to Hyperliquid addresses and began acquiring HYPE. Arkham intelligence confirms these transactions:
- A Manifold-linked address (0x091...23E) holds over 202,000 HYPE, valued at ~$7.8 million.
- A Galaxy-associated wallet (0xcaC...6b3) owns more than 540,000 HYPE, worth ~$20.85 million.
More importantly, these institutions aren’t just holding—they’re actively trading. Both entities maintain open positions in BTC, SOL, FARTCOIN, and ENS futures on Hyperliquid, demonstrating deep operational involvement.
This dual role—as both investors and active traders—signals confidence in Hyperliquid’s long-term viability and technical robustness.
🔹 Driver #3: Public Company Adoption Enters the Scene
A pivotal moment came in late June when Eyenovia, Inc. (NASDAQ: EYEN), a publicly traded biotech firm, announced it had raised $50 million via private placement—and used part of those funds to purchase 1,040,584 HYPE tokens.
This made EYEN the first Nasdaq-listed company to hold HYPE, echoing MicroStrategy’s BTC accumulation strategy. The market reacted swiftly: EYEN’s stock surged 77% intraday and climbed 181% over five days.
Shortly after, LGHL followed suit with its own $2 million strategic purchase—marking the first acquisition under its $600 million convertible bond financing initiative.
Such moves lend credibility to HYPE as an asset class and suggest that it may be entering the realm of institutional-grade digital assets, alongside BTC, ETH, and SOL.
How Does HYPE Compare to SOL?
While Solana and Hyperliquid serve different primary functions—SOL powers a general-purpose blockchain; HYPE fuels a derivatives-first trading layer—the comparison remains relevant in today’s market landscape.
As of this writing:
- SOL trades at ~$149 with a circulating market cap of ~$80 billion and FDV near $90 billion.
- HYPE trades at ~$39 with a market cap of ~$13 billion and FDV of ~$39 billion.
Even though HYPE is still smaller in scale, its growth trajectory is steep. If the projected $76 price target is met:
- Circulating market cap could reach ~$25 billion
- FDV could climb to ~$76 billion, or about 84% of SOL’s current FDV
Moreover, with meme coin mania cooling down and derivative trading becoming a dominant use case in crypto, the shift from “SOL up” to “HYPE up” may already be underway.
FAQ: Your Questions About HYPE Answered
Q: What is Hyperliquid?
A: Hyperliquid is a decentralized derivatives exchange built for high-speed trading with low latency. It supports perpetual futures and spot markets across multiple assets.
Q: Where can I buy HYPE tokens?
A: HYPE is primarily traded on Hyperliquid itself and select decentralized exchanges. Always verify contract addresses before purchasing.
Q: Is HYPE inflationary or deflationary?
A: The token model combines controlled emissions with aggressive daily buybacks, creating net deflationary pressure when buyback volumes exceed new issuance.
Q: How does Hyperliquid make money?
A: Revenue comes from trading fees, which fund token buybacks and ecosystem development through the Builder Code program.
Q: Can HYPE replace centralized exchanges?
A: While full replacement is unlikely soon, Hyperliquid offers competitive speed and lower fees—making it a serious contender in the DeFi derivatives space.
Q: Why are public companies buying HYPE?
A: Similar to BTC treasury strategies, companies see value in holding high-potential digital assets that can appreciate while signaling innovation to investors.
The Road Ahead: A Killer App Could Be the Catalyst
Hyperliquid already boasts impressive fundamentals: strong institutional backing, consistent buybacks, growing developer interest via HyperEVM, and emerging NFT activity.
But to truly rival Solana’s ecosystem dominance, it needs one thing: a killer application—something like Pump.fun was for Solana’s retail boom.
If such an app emerges—one that drives mass user adoption, integrates tightly with Hyperliquid’s trading engine, and leverages its speed and low cost—then yes, HYPE could very well challenge SOL’s throne.
For now, the momentum is real. The infrastructure is scaling. And the institutions are watching closely.
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