Hyperliquid Hits $10.6B Open Interest — New All-Time High

Hyperliquid, a decentralized derivatives platform, has reached a record-breaking milestone: open interest in futures trading on the platform has climbed to a record-breaking $10.6 billion. Analysts interpret this as a sign of deepening liquidity and growing investor confidence in Hyperliquid’s model.

The surge in trading activity coincides with a strong rally in HYPE, Hyperliquid’s native token. According to CoinMarketCap, the token has surged 1385% since its airdrop, reaching $47.55 at the time of writing. The token has gained 16.5% over the past month, bringing it to 11th place among all crypto assets by market capitalization ($15.85 billion). If current momentum continues, HYPE could break into the top 10, overtaking Cardano (ADA) — or even TRX.

The rapid rise of Hyperliquid underscores a broader shift: decentralized platforms are gaining ground on their centralized counterparts. Users are demanding enhanced security, greater transparency, and above all and most importantly — more control over their assets than traditional CEXs can offer.

What is Hyperliquid, and what sets it apart?

Hyperliquid is a platform that combines elements of centralized (CEX) and decentralized (DEX) platforms. The registration process and user interface are familiar and smooth — similar to what users expect from platforms like Kraken, Bybit, or OKX.  However, unlike them, Hyperliquid does not require KYC verification. That’s possible because the platform is not run by intermediaries: it’s running on its own Layer-1 blockchain.

All orders are placed, stored, and executed directly on-chain, without centralized servers or third-party operators. This same blockchain also supports the development of native DeFi applications and Layer-2 tools like HyperEVM.

Investor sentiment suggests the model is working — and winning trust. Hyperliquid offers a wide range of tools: spot, margin, and perpetual trading; low fees and one-click execution; and direct deposits from over 30 blockchains, including Ethereum and Solana.

What Is the HYPE Token?

HYPE is Hyperliquid’s native token launched via a large airdrop on November 29, 2024, distributed to nearly 100,000 users. The total supply is capped at 1 billion tokens, with 31% allocated via airdrop, 23.8% to core contributors, 38.88% for community rewards and future emissions, 6% to Hyper Foundation, and 0.3% for grants.

The token is the backbone of the Hyperliquid ecosystem, used for transaction fee discounts, staking rewards up to ~55% APY, governance participation, and liquidity mining incentives.

What else do users love about HYPE Coin?

Previously, Hyperliquid drew attention for launching what many call the most generous airdrop in crypto history. According to CryptoRank, 76.2% of the token supply was allocated to the community — with 31% distributed via the initial airdrop. At the token’s local peak, the airdrop’s value was estimated at $10.8 billion. Remarkably, many recipients chose not to sell immediately — as is often the case — but held onto their allocations.

Meanwhile, 23.8% of the team’s tokens are subject to a vesting schedule that runs through 2028, with the first unlock occurring one year after launch.  The airdrop design was widely praised at the time as near-perfect by much of the crypto community.

How to Trade HYPE on Hyperliquid

Here’s how to do it in Atomic Wallet:

1. Download Atomic Wallet
   Get the desktop or mobile app from atomicwallet.io and install it.
2. Open the app and create a wallet
   Secure your seed phrase and enable backup.
3. Search for “HYPE” in the app
   Use the search field to find HYPE.
4. Deposit funds
   Add USDT, USDC, or any supported asset via built-in on-ramp or wallet transfer.
5. Trade or hold HYPE
   Swap HYPE or track its performance in your portfolio.

H2 Use Cases of HYPE Token

HYPE functions beyond simple speculation:

• Governance participation: holders can propose and vote on protocol upgrades.
• Fee discounts: paying fees in HYPE provides reduced transaction costs.
• Staking incentives: holders earn up to ~55% APY and contribute to network security/stability.
• Liquidity mining & vaults: users can provide collateral or trade via vault strategies with shared P&L.

H2 What are the criticisms?

Hyperliquid’s key selling point is its no-KYC policy. But critics argue that, in practice, the platform functions much like a CEX — and should be regulated accordingly.

In March 2025, Hyperliquid was targeted in an attack involving price manipulation of a low-liquidity token, JELLYJELLY. After detecting unusual market activity, six validators voted to delist perpetual contracts. Subsequent analysis concluded that the attack was largely driven by malicious actors on Bybit, although irregular trading was also seen on other centralized platforms.

The Hyperliquid’s response triggered mixed reactions within the crypto community. Some praised Hyperliquid’s validator network for swiftly containing the attack; others saw the move as a breach of decentralization principles. Bitget CEO Gracy Chen went as far as calling Hyperliquid “an offshore CEX without KYC/AML,” accusing the platform of enabling bad actors.

FAQ — Key Questions About Hyperliquid & HYPE

• Is HYPE only for futures trading?
  No — HYPE is also used for governance, staking rewards, fee discounting, and liquidity mining.
• What is the circulating supply of HYPE?
  Approximately 334 million tokens circulating out of a 1 billion total supply as of mid-2025.
• Can I trade HYPE without KYC?
  Yes — Hyperliquid leverages a trustless L1 infrastructure for trading, eliminating the need for traditional KYC verification.

Is Hyperliquid secure?While the platform uses audited smart contracts and a custom consensus (HyperBFT), critics warn of centralization risks due to validator control and a past price-manipulation incident involving JELLYJELLY token, addressed by validators.