The native token of Hyperliquid, HYPE, has experienced a significant price increase of nearly 24% over the past six days, bringing it within striking distance of its record peak. This rally is attributed to a confluence of factors including regulatory progress, exchange-traded fund (ETF) interest, stablecoin expansion, and the introduction of synthetic assets on the platform.
Data from Santiment reveals that HYPE climbed from approximately $38.32 on May 13 to around $47.65, marking a six-day gain of about 24%. The token is now trading within $12 of its all-time high, with social dominance spiking to 1.79% on May 14—significantly above its normal range. Technical indicators from TradingView show HYPE/USDT on KuCoin near $48, with the Relative Strength Index (RSI) at 64.91, indicating strong buying momentum without being overbought. The Moving Average Convergence Divergence (MACD) remains positive, with the blue line above the signal line and rising green histogram bars.
A key catalyst has been the CLARITY Act, which cleared a crucial U.S. Senate committee on May 14. This bill aims to establish clearer market structure rules for digital assets, boosting sentiment for crypto trading platforms like Hyperliquid. Additionally, Bitwise has added demand for HYPE by announcing that it will allocate 10% of the management fee from its Bitwise Hyperliquid ETF (ticker BHYP) to hold HYPE on its balance sheet. This move aligns with Hyperliquid’s model, where roughly 99% of protocol revenue is used to buy and burn HYPE. BHYP began trading on the NYSE on May 15 with a 0.34% sponsor fee, waived for the first month on the first $500 million in assets. Bitwise noted that HYPE’s market cap has exceeded $11 billion, making it the tenth-largest crypto asset.
The rally is also supported by the deepening of USDC infrastructure on Hyperliquid. Circle has become the technical deployment partner for USDC on the platform, while Coinbase serves as the official USDC treasury deployer. USDC remains the primary collateral and quote asset across Hyperliquid’s ecosystem. According to reports, USDC supply on Hyperliquid has grown to about $5 billion, doubling year-over-year amid rising stablecoin demand on decentralized exchanges. Furthermore, the launch of SPCX, a synthetic SpaceX pre-IPO perpetual by Trade.xyz, has contributed to the bullish sentiment. The SPCX market implies a $1.78 trillion valuation for SpaceX, and HYPE added approximately 7% following its introduction.