Latest Hyperliquid (HYPE) News Update

Deep Dive

1. Bitwise ETF Bid (31 Dec 2025)

Overview:
Bitwise filed for 11 single-asset crypto ETFs targeting HYPE, AAVE, UNI, and others. Each ETF would hold up to 60% direct tokens and 40% derivatives. While Solana/XRP ETFs saw $1B+ inflows in 2025, their underlying assets underperformed post-launch (SOL -36% since October). Analysts warn of market saturation risk (AMBCrypto).

What this means:
This is neutral-to-bullish for HYPE. Approval could unlock institutional demand, but historical ETF-performance disconnects suggest cautious optimism. Watch SEC feedback by March 2026 and HYPE’s inclusion weighting.

2. Token Unlock Scrutiny (31 Dec 2025)

Overview:
12.4M HYPE ($251M) unlocks on January 6 for core contributors, part of a monthly vesting schedule. Previous unlocks saw partial restaking rather than immediate selling. HYPE is up 7% weekly despite the overhang, outperforming DOGE (-5%) and ASTER (-53%) (Bitcoinist).

What this means:
This is bearish short-term due to sentiment risk, but Hyperliquid’s revenue-reinvestment mechanism (99% fees for buybacks) may offset selling. Monitor on-chain wallets post-unlock for distribution patterns.

3. $1B Token Burn Finalized (24 Dec 2025)

Overview:
Hyperliquid validators approved burning 37M HYPE (~13% of supply) from its Assistance Fund, permanently removing $1B worth of tokens. The burn aims to counter inflation from unlocks and boost deflationary pressure amid rising competition (CRSystemsLog).

What this means:
This is structurally bullish, reducing sellable supply by 15% and aligning with Hyperliquid’s aggressive buyback strategy (97% of fees used for HYPE repurchases).

Conclusion

Hyperliquid balances institutional tailwinds (ETF potential) with tokenomics adjustments (burns/unlocks) as perpetual DEX competition intensifies. While the Bitwise filing signals mainstream recognition, HYPE’s 30-day price (-15.4%) reflects broader altcoin weakness. Will March’s ETF decisions validate its $8.8B valuation, or will unlock anxiety dominate? Track HYPE’s turnover ratio (0.019) for liquidity stress signals.

Deep Dive

1. @cryptofy01: Short-term consolidation, Q1 bullish potential mixed

“Expect choppy sideways movement between $23.00–$27.00 [...] If HYPE breaks $30.35, rally to $45–$50 is likely.”
– @cryptofy01 (1,994 followers · 4,386 impressions · 2025-12-28 11:11 UTC)
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What this means: Neutral short-term due to resistance at $27–$30, but bullish structurally if Q1 2026’s HIP-3 upgrade boosts TVL (already $5B+).

2. @Inam_Az1: Bearish swing setup targets 10%+ drop bearish

“Invalidation: 4H close above $25.50. Targets: 2%–10%+ downside.”
– @Inam_Az1 (810 followers · 5,837 impressions · 2025-12-21 20:55 UTC)
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What this means: Technical traders see risk of retesting $21–$24 support if HYPE fails to hold $25.50, aligning with Arthur Hayes’ $20 dip speculation.

3. @HYPERDailyTK: HYPE’s valuation “cheap” vs peers bullish

“HYPE’s MC/Rev ratio at 12.5x vs Ethereum’s 3,168x. Under $100 is still cheap.”
– @HYPERDailyTK (86,072 followers · 6,776 impressions · 2025-09-17 07:38 UTC)
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What this means: Fundamental bulls argue HYPE is undervalued given $1.2B annual protocol revenue, with 99% of fees used for buybacks.

Conclusion

The consensus on Hyperliquid is mixed, balancing strong fundamentals (revenue/buybacks) against technical resistance and macro skepticism. While the $30 level remains a key psychological battleground, watch open interest – currently at $1.42B – for clues on whether whales’ leveraged bets will force a squeeze or flush.

Deep Dive

1. HIP-3 Growth Mode (November 2025)

Overview: Introduced dynamic fee discounts (up to 90% reduction) for new markets to boost liquidity and trading volume.
Developers can deploy markets without centralized approval if they meet staking requirements (500,000 HYPE) and avoid asset overlaps. Fees for new markets dropped to 0.00144%-0.009%, with a 30-day lock period post-activation to ensure stability.
What this means: This is bullish for HYPE because lower fees attract traders and developers, potentially increasing platform activity and token utility. (Source)

2. HIP-3 Mainnet Activation (October 2025)

Overview: Allowed anyone to create perpetual markets by staking 500,000 HYPE, shifting control from validators to the community.
The upgrade integrated HyperEVM for custom market rules and added safeguards like validator slashing and open interest caps.
What this means: This is neutral-to-bullish for HYPE because while it decentralizes governance, the high staking threshold may limit participation. However, it fosters innovation in derivatives (e.g., exotic commodities, tokenized treasuries). (Source)

3. HyperEVM Integration (2025)

Overview: Enhanced cross-layer composability between HyperCore (orderbook) and HyperEVM, enabling seamless interaction with Ethereum smart contracts.
This allows protocols like Hyperlendx (leveraged lending) and Liminal Money (delta-neutral strategies) to build atop Hyperliquid’s infrastructure.
What this means: This is bullish for HYPE because interoperability with Ethereum expands developer reach and DeFi use cases, driving ecosystem growth. (Source)

Conclusion

Hyperliquid’s codebase updates emphasize decentralization, fee efficiency, and cross-chain interoperability, positioning it as a hub for innovative derivatives. With HIP-3 reducing barriers for market creation and HyperEVM bridging Ethereum’s ecosystem, how will these upgrades impact HYPE’s role in institutional DeFi adoption?

Deep Dive

1. Permissionless Perpetuals Rollout (13 October 2025)

Overview:
HIP-3 allows anyone staking 500,000 HYPE to launch perpetual markets on Hyperliquid, decentralizing the listing process. Safeguards include validator slashing and open interest caps (Coinspeaker).

What this means:
This is bullish for HYPE because it could increase protocol fees and trading diversity. Risks include potential low-quality listings if staking thresholds aren’t enforced rigorously.

2. Monthly Team Token Distributions (6 January 2026)

Overview:
1.2M HYPE tokens will begin monthly distributions to core contributors starting January 2026, following a structured vesting schedule (Discord announcement).

What this means:
This is neutral for HYPE as it introduces predictable supply dynamics but risks short-term sell pressure if recipients liquidate tokens.

3. HyperEVM Ecosystem Expansion (2026)

Overview:
Post-HIP-3 upgrades aim to deepen HyperEVM’s interoperability with HyperCore, enabling advanced DeFi apps like delta-neutral strategies and NFT integrations (RedStone blog).

What this means:
This is bullish for HYPE because ecosystem growth could drive demand for staking and fee discounts. Execution risks include competition from Ethereum L2s.

Conclusion

Hyperliquid’s roadmap balances decentralization (HIP-3), team incentives (vesting), and ecosystem scalability (HyperEVM). Watch for protocol fee trends post-HIP-3 and developer activity on HyperEVM. Will Hyperliquid’s VC-free model outpace rivals in attracting builders?