Key Insights
- Whales accumulated millions in HYPE tokens, which sparked a strong price rally.
- Stablecoin supply hit $277.8 billion as regulatory clarity boosted institutional use.
- Hyperliquid revenue surged, but upcoming token unlocks may bring volatility.
The HYPE token, native to the Hyperliquid decentralised exchange, has become one of the most discussed assets this year.
On-chain data from September showed aggressive whale accumulation that pushed prices higher and improved confidence among large investors.
Whales Make Their Move
One such case came on September 9, when a whale spent 10.56 million USDC to buy 217,689 HYPE tokens. That trade alone lifted HYPE’s price by 13 % to $54, and generated more than $1.3 million in unrealised gains.
Another high-profile investor, Qianbaidu.eth spent $20.57 million on 431,000 HYPE tokens at $47.7 per token. This sent the price to a fresh all-time high.
Notably, the same whale had already bought 260,900 tokens the day before for $13 million across two wallets.
Whale conviction has even extended to leveraged bets. One such whale account opened a $26.4 million long position with 5x leverage and locked in more than 483,000 HYPE tokens at $53.77.
These moves show HYPE’s role as both a governance and liquidity token within Hyperliquid, which now dominates 73 % of decentralised perpetual trading activity.
Stablecoin Expansion Boosts Institutional Participation
The surge in HYPE whale activity fits into the narrative of stablecoins and institutional adoption. By August, the total stablecoin supply had crossed $277.8 billion, on support from the GENIUS Act.
Data shows 83% of institutional investors plan to increase their crypto exposure this year. More than 90% have already integrated stablecoins into operations, especially for cross-border payments and treasury management.
USDC, the second-largest stablecoin, played a major role in the recent HYPE purchases. For example, a $42.9 million USDC deposit was used to accumulate more than 682,000 tokens.
At the same time, the Federal Reserve’s shift to a more dovish stance has fueled liquidity in risk assets. Now that rate cuts are likely, institutions are turning to both Ethereum staking ETFs and stablecoins to optimise treasury allocations.
Public treasuries already hold more than 3.3 million ETH, which shows how far adoption has come.
Macro Trends Driving Hyperliquid’s Growth
Hyperliquid has seen a surge in activity. Its Q3 revenue reached $406 million, which annualises to $810 million. The exchange also hit a record $78 billion in weekly trading volume, on support from $15 billion in open interest.
Bipartisan support for crypto laws like the GENIUS Act has also given the sector a stronger foundation. This regulatory clarity encourages traditional firms to enter the market, which is a factor that continues to benefit Hyperliquid and HYPE.
Despite strong fundamentals, there are still a few risks, though.
Hyperliquid is facing large scheduled unlocks of HYPE tokens later this year, which are estimated at $450 million per month.
The platform has set up a $1.3 billion Assistance Fund, though, to counter this and reduce selling pressure.
Technical Analysis and Trading Patterns
Backtests of HYPE from 2022 to date show a few useful patterns for traders. Historical data shows that when HYPE tested major support zones, average rebounds were between 18 and 22% within 30 days.
Moreover, success rates on these bounces reached 72%.
However, not every attempt holds. False breakouts often led to drawdowns of 8 to 12% before recovery. This said, traders using these patterns need discipline and risk management to avoid losses during false rebounds.
At present, the area near the $40 to $42 levels is viewed as a strong support zone. Breakouts above HYPE’s recent highs could continue the bullish trend. However, token unlocks are still a major factor.
Meanwhile, Hyperliquid is preparing to launch its own stablecoin, called USDH. This asset could reduce reliance on Circle’s USDC, and several firms have submitted proposals ahead of a community vote scheduled for September 14.
The outcome of this vote will determine whether Hyperliquid captures more of the $200 million in annual revenue that is currently flowing to Circle through USDC reserves.
