Latest Hyperliquid (HYPE) News Update

Deep Dive

1. Grayscale Joins HYPE ETF Race (11 January 2026)

Overview
Grayscale filed paperwork to launch a HYPE ETF after establishing a Delaware statutory trust, joining Bitwise, VanEck, and 21Shares. Approval would make HYPE the youngest altcoin with an ETF, potentially unlocking institutional demand.

What this means
This is bullish long-term given ETFs’ historical impact on crypto valuations, but short-term price action remains muted (-17% monthly). Markets await SEC signals – approval could reverse HYPE’s 2026 underperformance (-39% since November). (AMBCrypto)

2. Lighter/Aster Overtake in Volume (10 January 2026)

Overview
2025 data shows Lighter ($198B) and Aster ($177B) surpassed Hyperliquid in on-chain perpetuals volume, fragmenting the market. Hyperliquid’s share dropped from 70% to third place amid memecoin-driven liquidity shifts.

What this means
This is bearish for HYPE’s network effect – leadership in derivatives was key to its valuation. However, analysts note similar leadership changes occurred in 2023-2024 (dYdX → Hyperliquid), suggesting the DEX space remains dynamic. (Coincu)

3. Bear Flag Signals $19 Target (10 January 2026)

Overview
HYPE broke key support at $24.64, confirming a bear flag pattern. Analysts like Ali Martinez warn of a drop to $19 unless buyers reclaim $28.21.

What this means
This is neutral-to-bearish technically, but spot taker CVD turned positive for the first time since May 2025, hinting at dip-buying. Watch $22 support – a hold there could invalidate bearish structure. (CoinMarketCap)

Conclusion

HYPE faces a tug-of-war between ETF optimism, technical headwinds, and competitive pressures. While Grayscale’s move validates its institutional appeal, fading dominance in perpetuals and weak momentum demand caution. Key question: Can Hyperliquid’s deflationary buybacks (80k HYPE burned daily) offset rival platforms’ growth before ETF decisions?

Deep Dive

1. @sozdetrader: Unwavering conviction in HYPE's potential bullish

"Just Hyperliquid

Believe Hyperliquid

Bullish $HYPE 😏 "
– @sozdetrader (4,035 followers · Dec 22, 2025 01:13 UTC)
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What this means: This is bullish for HYPE because deep community conviction can sustain holding pressure during volatility, creating a foundation for price stability during sell-offs.

2. @Inam: Bearish technical structure targets 10%+ downside neutral

"📉 $HYPE Technical Analysis

Bias: Bearish... Invalidation: Close above $25.50 Targets: 2%-10%+ drops"
– @Inam (800 followers · Dec 21, 2025 20:55 UTC)
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What this means: This is bearish for HYPE short-term because the analysis suggests algorithmic traders may trigger cascading liquidations if $25.50 support fails, accelerating downward momentum.

3. @AVAXDaily: Revenue metrics signal 8x undervaluation bullish

"Hyperliquid's MC/Rev ratio at 12.5x vs Ethereum's 3,168x – $54 mispriced, under $100 still cheap"
– @AVAXDaily (78,356 followers · Sep 17, 2025 07:38 UTC)
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What this means: This is bullish for HYPE because fundamental comparables suggest massive re-rating potential if adoption accelerates, especially given its lead in perpetual DEX volume.

4. @PerpetualCow: Dominates XMR liquidity with 1% fee edge bullish

"0.051% spreads on Hyperliquid vs 1%+ elsewhere – zero frozen fund risk with instant cold storage"
– @PerpetualCow (5,289 followers · Dec 19, 2025 19:43 UTC)
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What this means: This is bullish for HYPE because superior infrastructure for assets like Monero attracts volume, directly boosting protocol revenue and token buyback pressure.

Conclusion

The consensus on HYPE is cautiously constructive, with bulls focused on fundamentals and bears monitoring technical breakdown risks. Watch whether $24 support holds post-January 6 token unlocks to gauge seller exhaustion versus accumulation opportunities.

Deep Dive

1. Permissionless Perps via HIP-3 (13 October 2025)

Overview: HIP-3 allows anyone to deploy perpetual futures markets on HyperCore by staking 500,000 HYPE tokens. This replaces centralized approvals with permissionless creation.
The upgrade integrates with HyperEVM for custom market rules and automated governance while adding safeguards like validator slashing and open-interest caps.
What this means: This is bullish for Hyperliquid because it decentralizes market creation, potentially increasing trading diversity and protocol revenue. However, the high staking barrier may limit smaller participants. (Source)

2. HyperEVM Integration (26 August 2025)

Overview: HyperEVM's mainnet integration allows Ethereum-compatible smart contracts to interact natively with Hyperliquid's orderbook via CoreWriter.
This enables complex DeFi applications like lending/borrowing and yield strategies directly atop Hyperliquid's high-speed infrastructure.
What this means: This is bullish for Hyperliquid because it attracts developers to build innovative products, boosting ecosystem utility. Users gain access to more financial tools without sacrificing speed. (Source)

3. API Stability Upgrades (30 July 2025)

Overview: Post-outage fixes added multi-layer protections to handle traffic surges, ensuring uninterrupted trading during volatility.
The upgrades optimized API reliability and real-time data processing after a 37-minute downtime incident.
What this means: This is neutral for Hyperliquid because while reliability improvements strengthen user trust, the prior outage highlighted operational risks during peak demand. (Source)

Conclusion

Hyperliquid's code evolution prioritizes decentralization and resilience, positioning it for sustainable DeFi leadership. How will permissionless markets reshape its trading volume dynamics?

Deep Dive

1. HyperEVM Expansion (Q1 2026)

Overview: Hyperliquid plans to scale its Ethereum-compatible HyperEVM environment in Q1 2026, enabling permissionless deployment of DeFi dApps and NFT projects like Hypurr. This upgrade targets enhanced interoperability and developer flexibility, expanding Hyperliquid’s utility beyond perpetual trading.

What this means: This is bullish for HYPE because ecosystem growth could drive demand for network resources and staking, increasing token utility. Bearishly, delays in developer adoption or technical hurdles could slow momentum.

2. Token Buyback Program (2026)

Overview: Hyperliquid is considering buybacks of up to 97% of HYPE’s supply (CCN), using protocol fees to reduce circulating supply. This follows 2025’s $644M buybacks, which absorbed ~21M tokens (2.1% of supply).

What this means: This is bullish for HYPE because reducing supply amid steady demand could create upward price pressure. Risks include market volatility reducing fee revenue and insufficient buyback volume to offset sell pressure.

3. USDH Stablecoin Integration (2026)

Overview: The platform will launch USDH, a native stablecoin backed by yield-generating reserves, with 95% of revenue directed to HYPE buybacks (HYPERDailyTK). This aims to deepen liquidity pools and offer new yield avenues.

What this means: This is bullish for HYPE because USDH could attract TradFi inflows and stabilize ecosystem TVL. However, regulatory scrutiny of stablecoins or competition from established alternatives like USDC poses adoption risks.

Conclusion

Hyperliquid’s roadmap prioritizes ecosystem scalability, tokenomics refinement, and stablecoin innovation to solidify its DeFi leadership. How might these developments influence HYPE’s utility beyond speculative trading?