Hyperliquid’s native token, HYPE, surged to a new record high following a significant increase in trading activity and open interest on the platform.
This momentum mirrors the broader market upswing driven by Bitcoin’s latest price milestone and coincides with Hyperliquid’s public response to regulatory discussions with the US Commodity Futures Trading Commission (CFTC).
Hyperliquid’s open interest
According to data from CoinGlass, Hyperliquid’s open interest is approaching the $12 billion mark, reaching $9.4 billion on May 23.
This number represents a 53% climb from the platform’s previous peak of around $6 billion, registered earlier in the month.
Open interest tracks the total number of active futures and perpetual contracts, often rising when market sentiment strengthens.
With Bitcoin price rising to a new all-time high above $111,000 on May 22, investors’ appetite for derivatives grew, and platforms like Hyperliquid experienced a sharp uptick in trading activity on their platform.
Engagements with CFTC
Meanwhile, amid the growing attention on the platform, Hyperliquid Labs submitted two comment letters to the CFTC.
These responses addressed the agency’s open calls for feedback on perpetual derivatives and 24/7 crypto trading.
In the letters, the company outlined how its decentralized infrastructure supports transparency, self-custody, and composability, which are core benefits of on-chain perpetual contracts.
Hyperliquid also stressed that its platform offers continuous liquidity, real-time collateral management with pre-funded accounts, automated liquidations, and round-the-clock trading.
It also highlighted features like decentralized infrastructure and immutable audit trails, strengthening resilience and compliance readiness.
The company concluded:
“We believe that Hyperliquid exemplifies how core defi principles can be put into practice to enhance market efficiency, market integrity, and user protection. Supporting DeFi in the US with open dialogue and a clear regulatory framework is an opportunity to ensure the US remains a leader in financial innovation while robustly protecting users.”
HYPE climbs to new ATH
These regulatory engagements and advancements on the decentralized trading platforms aided HYPE’s climb to a new all-time high.
According to CryptoSlate’s data, the token joined the broader market rally, jumping over 12% in the last 24 hours to a new high of over $37. The digital asset has risen by over 95% in the previous 30 days.
However, not all traders have benefited from this run.
Blockchain analysis platform SpotOnChain reported that a large whale shorted 1.875 million HYPE tokens, worth over $57 million, at 5x leverage.
As prices spiked, the whale closed their position at a loss of $23.5 million, wiping out most of the $30.5 million USDC they had deposited to maintain the bet. Their remaining balance stands at just under $7 million.
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