Hyperliquid (HYPE) Price Prediction

Deep Dive

1. Institutional Onboarding via Ripple (Bullish Impact)

Overview: Hyperliquid's integration with Ripple Prime provides a regulated gateway for institutions to access its on-chain perpetual futures. This follows Hyperliquid's reported $2.6 trillion in trading volume, nearly double Coinbase's, signaling robust growth and credibility (Artemis).
What this means: Increased institutional participation could drive higher trading volumes and fee revenue. Since a portion of fees is used for HYPE buybacks, this creates a reflexive demand cycle, providing sustained upward pressure on the token's price.

2. Supply Clarification Vote (Bullish Impact)

Overview: Validators are voting on whether to recognize ~37 million HYPE (worth ~$1 billion) in the protocol's Assistance Fund as permanently inaccessible, effectively treating them as burned (Cointribune EN). This fund is fueled by trading fees and buybacks.
What this means: Formalizing this reduction in effective circulating supply could enhance HYPE's scarcity narrative. Combined with the platform's revenue-driven buyback mechanism, this structural tailwind may support long-term valuation, especially if trading activity remains high.

3. Rising Competition in Perp DEXs (Bearish Impact)

Overview: The decentralized perpetual exchange sector is intensifying. EdgeX, backed by Circle Ventures, reports $5 billion in daily volume and plans a Q1 2026 token launch, positioning itself as a direct competitor (Yellow.com).
What this means: Hyperliquid's current ~80% market share is not guaranteed. If competitors erode its user base or volume, the associated fee revenue—and thus the buyback pressure supporting HYPE—could diminish, posing a risk to its price sustainability.

Conclusion

HYPE's trajectory hinges on whether institutional inflows and deflationary tokenomics can outpace competitive threats and market sentiment shifts. For holders, monitoring validator decisions on the Assistance Fund and Hyperliquid's weekly market share against rivals will be critical.
Will the platform's first-mover advantage and institutional partnerships solidify its dominance, or will the crowded perp DEX landscape lead to fragmentation?