The Hyperliquid price is seeing momentum pick up again, posting double gains over the past week and bucking the broader downtrend in the cryptocurrency market. This is thanks to growing fundamentals in the token ecosystem, including an boost in the number of open transactions on the decentralized exchange (DEX).
Why is the price of Hyperliquid increasing?
Hyperliquid’s price has surged more than 58% in the past seven days, outperforming the broader cryptocurrency market as Bitcoin trades just below the psychological level of $90,000. This price boost occurred as a result of price increases Open interest in Hyperliquid HIP-3. DEX announced in Post X open interest reached an all-time high of $790 million, helped by a recent surge in commodity trading.
The exchange added that open interest in HIP-3 is hitting a recent all-time high each week, following just $260 million a month ago. HIP-3 enables everyone to launch a custom perpetual market for cryptocurrencies, commodities such as gold and silver, and other assets such as stocks. With this update, the DEX is seeing increased trading activity, which has led to a edged boost in the price of Hyperliquid.
Notably, the Hyperliquid price benefited from the precious metals boom, and the DEX silver perpetual market saw massive trading activity. CoinGecko data shows that the Silver perpetual market is the third largest trading market in the last 24 hours, behind Bitcoin and Ethereum, with a trading volume of just over $1 billion.
In Post XHyperliquid co-founder Jeff Yan noted that the DEX has reached an essential milestone, becoming the most liquid place to discover cryptocurrency prices in the world. This came as he highlighted the order books for Persian BTC on Binance and its DEX. He added this Hyperliquid has also grown become the most liquid place for people dealing in customary finance (TradFi) assets.
Little selling pressure and huge buying pressure for hype
In Post XHenrik, a shareholder in Hyperliquid, noted that the price of Hyperliquid also increases as the main selling pressure subsides. On the other hand, HYPE is seeing significant demand, including from digital asset treasury firms such as Hyperliquid strategies. He then highlighted Kraken’s upcoming listing on HYPE, which is also bullish for the token. Meanwhile, Henrik found that Hyperliquid dominates all trading metrics, including volume and open interest.
The boost in DEX trading activity is also significant and uplifting for the price of Hyperliquid as most of the fees earned on the protocol go to Aid Fundwhich is used to repurchase HYPE tokens on the open market. DeFiLlama data shows that DEX is currently among the top five protocols in terms of fees generated in the last 24 hours.
As of this writing, Hyperliquid is trading at around $34, up over 27% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Medium, chart from Tradingview.com
