Hyperliquid’s HYPE Token Journey – What’s Behind the 1028% Surge and Community Buzz

As of June 28, 2025, the HYPE token has become a focal point in the DeFi world, trading at $36.12 with an astonishing 1028.72% increase over the past year, supported by a $12.06 billion market cap. Behind this success lies Hyperliquid, a cutting-edge decentralized exchange (DEX) built on its own Layer-1 blockchain, designed to revolutionize crypto trading.

Hyperliquid is a high-performance decentralized perpetual exchange launched in 2023 by Hyperliquid Labs, founded by Harvard alumni Jeff Yan and Iliensinc. Unlike traditional DEXs that rely on automated market makers (AMMs), Hyperliquid operates a fully on-chain order book, mirroring the efficiency of centralized exchanges (CEXs) like Binance while maintaining DeFi’s transparency and self-custody. Built on its custom Layer-1 blockchain with the HyperBFT consensus mechanism, it processes up to 200,000 transactions per second, offering sub-second trade finality and no gas fees for trades. This unique blend of speed, liquidity, and decentralization supporting up to 50x leverage on perpetual futures across 130+ assets sets Hyperliquid apart, making it a go-to platform for traders seeking CEX-like experiences in a trustless environment. The native HYPE token, introduced via a historic airdrop in November 2024, powers governance, staking, and ecosystem incentives.

HYPE’s Recent Milestones

HYPE’s journey kicked off with a bang in late 2024, starting with a highly anticipated airdrop on November 29 that distributed $1.2 billion worth of tokens to nearly 100,000 users. This generous allocation averaging $45K-$50K per recipient set a new benchmark for community-focused distributions, avoiding the usual venture capital-heavy model. Since then, HYPE has soared from its launch price of $3.90 to a peak near $45, with recent activity showing resilience despite a 0.36% market cap dip.

Key moments include the introduction of 3x leverage trading for HYPE in December 2024, empowering traders to amplify their positions, and the launch of HIP-3 in mid-2025, which decentralizes perpetual contract listings to the community.

These moves, coupled with record-breaking open interest hitting $10.1 billion and 24-hour fees reaching $5.6 million, highlight HYPE’s growing utility and ecosystem traction. The token’s role in staking and fee discounts has also fueled its adoption, with total locked value surpassing $3.5 billion in USDC.

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What’s Driving the Price Increase?

The 1028.72% yearly gain isn’t accidental. Several factors have propelled HYPE’s rise:

• Airdrop Success: The November 2024 airdrop avoided the typical post-distribution dump, with HYPE climbing to $12.95 within days and later hitting $45 in June 2025, driven by strong community demand and whale accumulation of nearly $10 million.

• Trading Volume Surge: With a 24-hour volume of $253.58 million, HYPE benefits from Hyperliquid’s dominance in on-chain perpetual futures, processing billions in volume daily and attracting both retail and institutional players.

• Ecosystem Growth: Initiatives like HIP-3 and staking tiers, offering up to 40% fee discounts for stakers, have boosted HYPE’s utility, encouraging long-term holding and trading activity.

• Market Sentiment: High-profile trades, such as a trader turning $5.2 million into $42.2 million in six months, and endorsements from influencers like Andrew Tate with 138% gains on leverage, have amplified HYPE’s visibility.

However, the recent price softness (down 0.04% in volume) may stem from profit-taking after the all-time high or anticipation of token unlocks, with only 333.92 million of 999.99 million HYPE in circulation.

Community Sentiment and Outlook

The crypto community is buzzing about HYPE, with a largely bullish tone. Social media posts reflect excitement over HIP-3’s potential to democratize listings, while others note significant capital inflows, like a $600 million credit line for a treasury fund using HYPE as a reserve asset.

Despite this optimism, some skepticism lingers, with comparisons to past DeFi tokens like DYDX raising concerns about sustainability. The Fear & Greed Index at 42 indicates a “Fear” zone, hinting at a buying opportunity for some, while technical indicators like a declining RSI (recently at 39.52) suggest short-term bearish pressure. Still, the low short positions and a potential $50 target keep the mood upbeat.

What Lies Ahead for HYPE?

HYPE’s 1028.72% rise reflects a perfect storm of community engagement, strategic updates, and market momentum. With a fully diluted valuation of $36.12 billion, its future hinges on managing supply growth and sustaining ecosystem activity. The upcoming HyperEVM mainnet launch could enhance HYPE’s utility, while regulatory developments and broader crypto trends will play a role. For now, HYPE stands as a testament to DeFi’s evolving landscape, with its community driving its narrative.