Hyperliquid's (HYPE) Latest Price Rally: Unpacking the Hype Behind the Surge

HYPE Token Soars: Key Drivers Behind Hyperliquid’s 2025 Surge

In late 2025, Hyperliquid’s native token, HYPE, witnessed a remarkable rally, propelled by a blend of robust on-chain activity, innovative platform upgrades, and growing interest from institutional investors. The token’s recent debut on Robinhood and a significant jump in Total Value Locked (TVL) have made HYPE a central player in the decentralized trading landscape. This report explores how market sentiment, blockchain data, and structural developments are shaping HYPE’s trajectory and its prospects for further institutional adoption.

Liquidity Expansion: TVL Growth and Platform Upgrades

By June 2025, Hyperliquid’s TVL had climbed to $3.5 billion—a 70.8% increase since the year began. This surge was largely attributed to the platform’s dual-layer design, combining HyperEVM and the Unit layer to enable EVM compatibility and seamless cross-asset trading. These advancements attracted both individual and institutional capital, with daily inflows surpassing $50 million in the final quarter of 2024. TVL skyrocketed from $564 million to over $2 billion during this period. The HIP-3 upgrade further accelerated growth by reducing taker fees for new markets by more than 90%, bringing costs down to just 0.0045%. These lower fees incentivized trading activity and positioned Hyperliquid as a strong alternative to traditional exchanges, especially for specialized assets like tokenized stocks and pre-IPO shares.

Robinhood Listing: Unlocking New Demand

HYPE’s listing on Robinhood in November 2025 marked a turning point, sparking a 13% price jump and renewed on-chain engagement. The listing broadened access to HYPE, attracting both retail investors and large-scale traders. Blockchain data showed that three major crypto whales collectively opened nearly $100 million in leveraged long positions on Hyperliquid, with one taking a 25x leveraged position on Ethereum. Such bold moves reflected strong confidence in Hyperliquid’s future, despite short-term price swings. For example, HYPE briefly dropped 18% in a single day in late November, falling out of the top 20 cryptocurrencies by market cap. However, analysts pointed to oversold conditions (RSI at 17) and anticipated a potential short-term rebound.

On-Chain Signals: Strengths and Weaknesses

While Hyperliquid’s TVL and transaction volumes suggest a bullish outlook, technical indicators reveal underlying risks. The platform’s daily perpetuals trading volume reached $8 billion, with open interest at $6.5 billion on HyperliquidX. Despite this liquidity, bearish chart patterns—such as a head and shoulders formation and a looming death cross between the 50-day and 200-day moving averages—raise caution. Should the $35.5 resistance fail, forecasts indicate HYPE could decline by as much as 70%, potentially falling to the $10–$12 range. On the other hand, continued accumulation by large holders and an ascending channel pattern could pave the way for a breakout toward $38–$41.

Market Mood: Optimism Meets Structural Challenges

Sentiment across social platforms is divided. While some Reddit and Twitter users predict bullish targets of $60–$70 based on technical breakouts, others warn of risks tied to the upcoming 10 million HYPE token unlock in late November, which could add $500 million in monthly supply. The Hyperliquid Fear and Greed Index currently sits at 43, reflecting a cautious to slightly fearful market stance. Competitive pressure is also mounting, with Binance-backed Aster outperforming Hyperliquid in certain areas. Nevertheless, long-term growth drivers—such as the $300 million HYPE treasury managed by Hyperliquid Strategies and the ongoing HIP-3 expansion—are expected to help offset these risks.

Institutional Momentum: Building for the Future

Hyperliquid’s partnership with Paxos on the USDG0 stablecoin and its move into tokenized equities highlight a strategic shift toward institutional-grade offerings. The platform has even surpassed Robinhood in monthly trading volume, underscoring its growing appeal to professional investors. Some analysts suggest that the Robinhood listing may trigger a “sell the rumor, buy the news” scenario, where short-term volatility gives way to steady accumulation. If Hyperliquid successfully rolls out its roadmap—especially the DAT initiative—HYPE’s dominance in decentralized perpetual trading, currently at 71%, could expand even further.

Final Thoughts: Navigating High Risk and High Reward

HYPE’s recent rally is underpinned by technical advancements, strategic exchange listings, and significant whale participation. While strong on-chain metrics and product enhancements provide a solid base, potential vulnerabilities—such as technical breakdowns and token unlock events—remain. For investors, closely watching the $35–$36 resistance level will be crucial; a breakout could validate a move toward $50, while failure may lead to a sharp correction. Ultimately, Hyperliquid’s ability to attract institutional capital and deliver on its expansion plans will determine whether HYPE’s current momentum translates into lasting growth.