The native token of the Hyperliquid perpetual futures exchange, HYPE, is on a tear. The token skyrocketed to a new all-time high of $59.39 today, fueled by intense anticipation for the platform’s upcoming USDH stablecoin launch and massive ecosystem growth.
This bullish run has ignited excitement across the crypto community, with prominent figures like Arthur Hayes celebrating the milestone.
Ecosystem Growth Fuels the Rally
The price surge is backed by impressive fundamental growth across the entire Hyperliquid platform. The protocol has now become a major player in the stablecoin industry.
In fact, DeFiLlama data shows Hyperliquid has climbed to become the fifth-largest network for stablecoins, surpassing giants like Base, Arbitrum, and Polygon. The total stablecoin supply on the platform has grown nearly 5% in a week to reach $6.20 billion.
Source : DeFiLlama
This growth underscores a significant rise in user activity and transactional volume. Furthermore, the Total Value Locked (TVL) has exploded from $354 million in April to a staggering $2.74 billion by September, signaling huge capital inflows and user trust.
Smart Money is Overwhelmingly Bullish
On-chain data reveals that institutional and retail investors are heavily betting on more gains. Analytics from Nansen show a clear bullish tilt:
- Smart Money Wallets: Hold $86 million in long positions versus $40 million in shorts.
- Public Investors: Hold $47 million long versus $22 million short.
Interestingly, whale activity is more divided, with $259 million long and $248 million short. This split highlights some growing tension in the market, suggesting that while many expect higher prices, some major players are preparing for a potential pullback.
Technical Outlook: Can the Rally Continue?
After hitting its peak, HYPE has experienced a minor pullback and is currently trading around $58. However, it remains well above its late August low of $40.
Technical indicators are mostly positive. The MACD indicator shows a strong bullish crossover, and the histogram bars are widening. However, the daily RSI is at 69, nearing overbought territory above 70.
This suggests that while the momentum is strong, the token might be due for a short-term consolidation.
The upcoming launch of the native USDH stablecoin is the major catalyst everyone is watching. If successful, it could be the key to pushing HYPE toward its next major resistance levels at $65 and even $70.
