HYPE Jumps Double Digits as Hyperliquid ETFs Add $25.5M

Hyperliquid’s HYPE logged double-digit gains on the day, as ETF demand outpaced the token's supply reduction mechanism.

DecryptMay 213 min readVerified

HYPE Jumps Double Digits as Hyperliquid ETFs Add $25.5M — Image · Decrypt

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Hyperliquid’s HYPE logged double-digit gains on the day, as ETF demand outpaced the token's supply reduction mechanism.

In brief Inflows to Hyperliquid ETFs hit $25.5M Wednesday, higher than the first five days of inflows combined.
Bitwise shows strong support for Hyperliquid, committing 10% of ETF fees into the HYPE balance sheet.
Hyperliquid's sustained uptrend continued into Thursday, as the decentralized exchange's token surged to an intraday high of $58.97.HYPE is currently trading at $57.20, up 15.3% on the day according to CoinGecko data.
Its explosive gains outpaced those of Zcash (12%) and Worldcoin (7%), and comes amid renewed institutional interest.The newly launched Hyperliquid ETFs logged $25.5 million in net buying on Wednesday.
That figure is 17 times higher than the token's daily Assistance Fund burn of roughly $1.4 million, per Dune Analytics.

$25.5M$58.97$57.20$25.5 million$1.4 million$22.35 million

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In brief Inflows to Hyperliquid ETFs hit $25.5M Wednesday, higher than the first five days of inflows combined. ETF demand follows HYPE’s stellar performance, which has led to more than a 100% rally this year. Bitwise shows strong support for Hyperliquid, committing 10% of ETF fees into the HYPE balance sheet. Hyperliquid's sustained uptrend continued into Thursday, as the decentralized exchange's token surged to an intraday high of $58.97.HYPE is currently trading at $57.20, up 15.3% on the day according to CoinGecko data. Its explosive gains outpaced those of Zcash (12%) and Worldcoin (7%), and comes amid renewed institutional interest.The newly launched Hyperliquid ETFs logged $25.5 million in net buying on Wednesday. That figure is 17 times higher than the token's daily Assistance Fund burn of roughly $1.4 million, per Dune Analytics. It also exceeds the combined net buying of the first five days, which amounts to $22.35 million, according to SoSoValue data.ETF demand for HYPE is now dramatically outpacing the token's built-in supply reduction mechanism, a dynamic that could tighten available supply further.“The market is rewarding real trading volume, fee generation, user engagement, and the perception that Hyperliquid is becoming one of the few crypto native platforms capable of competing with centralized exchange experiences,” Jason Rindahl, CEO of Nebula DeFi, told Decrypt.On prediction market Myriad, owned by Decrypt's parent company Dastan, user confidence has been fully validated: the contract on whether HYPE would hit $52 in May resolved to 100% as the token blew past the threshold Wednesday.Bitwise doubles down on HyperliquidBitwise, one of the two issuers to file HYPE ETFs last week, published the wallet addresses for its Bitwise Hyperliquid ETF on Wednesday. “Hyperliquid's DNA is all about transparency. Everything is onchain. Don't trust, verify," the firm tweeted.In a similar show of support, Bitwise announced Monday it would devote 10% of the ETF's management fee to holding HYPE on its balance sheet, calling it a “community-first model” aligned with Hyperliquid's 99% revenue buyback mechanism. “If the protocol succeeds, the community succeeds,” the firm wrote.Bitwise CIO Matt Hougan, who’s been a vocal supporter of Hyperliquid, published a detailed memo on Tuesday titled “Hyperliquid Is What You Get When Crypto Is Allowed To Grow Up.”In it, he argued the market is mispricing HYPE and identified two errors: a “category error” where investors value Hyperliquid as a crypto perpetual exchange rather than a global super-app for all assets, and an “anchoring error” where investors lump HYPE together with first-generation governance tokens rather than comparing it to high-growth financial infrastructure like Robinhood or CME.“Hyperliquid is one of the most important crypto projects to emerge in years,” Hougan wrote. “I still think investors are underestimating its impact and its value.”The mixed reaction in tech stocks following Nvidia’s earnings did little to dampen altcoins’ optimistic sentiment.The U.S. chipmaker released its first-quarter earnings on Wednesday, showcasing revenue of $81.6 billion, up 85% year-over-year, beating Wall Street estimates of $78.9 billion. The chipmaker also authorized an $80 billion stock buyback and raised its dividend.Despite the beats and strong guidance, Nvidia shares fell more than 3% in after-hours trading, but are currently attempting a recovery.Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.

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Bitcoin stabilizes near $63,000, but reclaiming $64,000 is the real test Bitcoin is stabilizing near $63,100 after buyers defended the lower part of its recent range. That is constructive, but it is not yet a confirmed recovery. BTC must first overcome resistance near $63,175-$63,270, while reclaiming and holding $64,000-$64,095 remains the more important test. Key takeaways for Bitcoin traders and investors Current position: BTC is holding above the previous month’s lower value boundary near $62,380. Immediate resistance: Buyers need to clear $63,130-$63,175, followed by $63,247-$63,270. Main recovery test: A sustained reclaim of $64,000-$64,095 would carry much more weight than a temporary bounce near $63,000. Major support: The broader $62,380-$62,535 region remains the most important defended zone. Bullish confirmation: Repeated closes, consolidation or a successful retest above $64,095 would show that Bitcoin is beginning to establish higher accepted value. 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Price subsequently recovered toward $63,100, strengthening the case that buyers are willing to defend the lower part of the previous month’s trading range. What stands out to me, however, is how little upward progress followed that buying. Several periods showed positive buying pressure, but BTC remained concentrated around $63,050 and repeatedly struggled to extend beyond $63,150-$63,175. In simple terms, buyers have shown that they can slow the decline, but they have not yet shown that they can move Bitcoin into a clearly higher trading range. This is the difference between stabilization and recovery: Stabilization means sellers are no longer pushing price lower with the same ease. Recovery means buyers are lifting price, holding above resistance and shifting the market’s most active trading area higher. Bitcoin has shown the first condition. The second still needs confirmation. Why $62,380 and $64,095 matter The previous month’s value area provides a useful map of where most Bitcoin trading took place: Value Area Low near $62,380: The lower boundary of the previous month’s heavily traded range. Point of Control near $64,095: The price that attracted the most trading activity during the month. Value Area High near $65,050: The upper boundary of the previous month’s accepted range. BTC is currently about $720 above the monthly Value Area Low, but almost $1,000 below the monthly Point of Control. Holding above $62,380 tells us that demand inside the previous month’s range has not completely failed. Remaining below $64,095 tells us that buyers have not regained control of the broader value structure. This is also why $64,095 may be more important than $64,000 itself. The round number attracts attention, but $64,095 represents the previous month’s busiest price area. A brief move above $64,000 could still become another failed breakout. 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This analysis presents conditional market scenarios and opinions (not promises) at investingLive.com, not a guarantee of future performance. Traders should consider volatility, position size and their own risk limits before acting. This article was written by Itai Levitan at investinglive.com.

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