Hyperliquid is a decentralised perpetual futures exchange built on its own Layer-1 blockchain, which is now the 9th-largest cryptocurrency by market cap.
Amid the rally in HYPE tokens, the decentralised exchange has become a topic of discussion due to recent developments around it. The rally was witnessed on the same day after Grayscale rolled out its Grayscale Hyperliquid Staking ETF (HYPG) on Nasdaq. Recently, Hyperliquid has managed to create a new all-time high after soaring to around $75.51. This ATH was created on June 2.
This blog is covering different questions related to the layer-1 blockchain, such as what Hyperliquid is and why HYPE is surging. We will also break down the most important question, whether it would touch the $150 price target.
What is Hyperliquid?
Hyperliquid is the leading Layer-1 blockchain purpose-built for decentralised trading. While most of the decentralised exchanges (DEXs) are working on general-purpose blockchains such as Ethereum and Solana, Hyperliquid has created its own on-chain ecosystem for perpetual futures with high transaction and low fees.
Hyperliquid Layer 1 has some of the best features that make it a highly demanding platform in the DeFi sector.
- Full on-chain central limit order book (CLOB) – The decentralised exchange has integrated a central limit order book on the blockchain. This is the same mechanism used by centralised exchanges (CEX) like Binance. The integration of blockchain is allowing its users to keep a check on orders, trades, funding, and liquidations with great transparency.
- Glass Trading – Another major feature of Hyperliquid is that it charges zero fees or burns HYPE tokens on placing, cancelling, or changing orders.
- Sub-second finality via HyperBFT consensus – Hyperliquid is known for sub-second finality as it can execute transactions in less than a second. According to the official claim, the average delay of transactions on the network is around 0.2 seconds. The main reason behind this is its own consensus mechanism known as HyperBFT. This mechanism was developed by engineers from MIT and Hudson River Trading.
According to the official website, Hyperliquid provides support for more than 300 perpetual futures and spot markets. The list of perpetual derivatives includes cryptocurrencies, commodities like gold and oil, stock indices (S&P 500 proxies), and many more. These perpetual derivatives have no expiration date, and users can trade them anytime.
As it is a decentralised exchange, users do not have to complete the KYC process. By directly connecting a wallet, they can start trading on Hyperliquid DEX. Apart from this, there is no limit on withdrawals, and users can take full control of their own money.
How Does Hyperliquid Work?
Hyperliquid is designed to work as a high-speed trading system on its own Layer-1 blockchain. On the network, there are different types of tools and elements available for developers and users.
1. HyperCore – HyperCore is the execution engine of the entire Hyperliquid ecosystem, which is responsible for the majority of tasks on the network. For example,
- Perpetual futures order books
- Spot markets
- Margin accounting
- Funding payments
- Liquidations
HyperCore on the DEX is working as an on-chain central limit order book (CLOB) where all kinds of trading activities take place on the network. Due to this, users are able to see transactions happening in no time and benefit from the efficient liquidity of a centralised exchange.
2. HyperEVM – It is a smart contract layer compatible with the Ethereum Virtual Machine. By using this layer, developers can create various decentralised applications on Hyperliquid, such as lending platforms like Aave, borrowing applications, custom trading tools, and many others.
The applications developed through HyperEVM are directly connected to the deep pool of liquidity on HyperCore. By using two different setups through HyperEVM and HyperCore for different purposes, the layer 1 blockchain makes the entire network smooth for a large number of activities.
3. HyperBFT – HyperBFT is an “optimistic responsive” consensus mechanism, which is inspired by HotStuff. This mechanism allows for the increase in the speed of transactions with sub-second finality. These transactions happen as fast as validators can communicate with each other.
4. HIP 3 – HIP 3 is the Hyperliquid Improvement Proposal 3, which has changed the mechanism of the platform. This proposal has allowed developers, who stake their HYPE tokens on the network, to introduce their own perpetual futures markets. These new markets will also work on the same HyperCore system. It means that these platforms will be able to benefit from order books, good margin handling, and faster execution.
This proposal is one of the reasons why Hyperliquid has many non-crypto assets, such as oil, gold, stock market indexes, and more. In return, the creators of these platforms can earn a part of the fees generated by their markets.
5. HIP 4 – It is taking the platform to the advanced stage by integrating support for prediction markets, which are contracts based on the outcomes of real-world events. This new upgrade is creating a new stream to earn revenue.
6. HYPE Tokens – Hyperliquid has its own tokens, known as HYPE. These tokens can be used for various purposes, including staking for network security and governance, deploying markets through HIP-3, fee discounts when used for trading, and others.
The platform for perpetual derivatives is using 97% fee buyback mechanism, which means that the fees generated by the protocol will be used to buy HYPE tokens from the open market.
Why is HYPE Surging? The 4 Catalysts Behind the ATH
On June 2, HYPE broke all previous records and created a new all-time high at around $75.51. The rally in the cryptocurrency is coming from the growing institutional adoption of HYPE ETFs, regulatory developments around the digital asset sector, and others. However, these are 4 major catalysts behind.
1. The ETF Wave
In one month, the institutional investors have witnessed the launch of three major exchange-traded funds for HYPE, including Bitwise BHYP, 21Shares THYP, and Grayscale HYPG. On June 3, Grayscale rolled out its HYPG ETF with the lowest fees at 0.29%, which sparked a competition in the market.
2. CFTC Bitcoin Perps Approval
On May 29, the U.S. Commodity Futures Trading Commission (CFTC) announced that the agency is approving Kalshi’s BTCPERP, which is the first regulated Bitcoin perpetual futures product in the United States.
This announcement is giving official recognition to the entire on-chain perpetuals market, which is largely dominated by Hyperliquid. The decentralised exchange is holding 70% of the market share.
3. Institutional Rotation
According to the on-chain data, many big financial institutions are moving money into the HYPE token despite the bearish conditions in the overall crypto market after Bitcoin (BTC) crashed below $70,000.
According to Lookonchain, Andreessen Horowitz (a17z) has accumulated more than $90 million worth of HYPE tokens in more than a month. This accumulation of HYPE tokens has made it the sixth biggest company with the tokens. Other companies like FalconX are also accumulating tokens as they are withdrawing money from Bitcoin and Ethereum.
On May 14, Coinbase also became the official USDC treasury manager for Hyperliquid. This is expected to bring large amounts of revenue, around $160 million and $180 million, through yield sharing and integration with stablecoins.
4. Protocol Dominance
Hyperliquid is currently holding around 70% of all on-chain perpetual trading volume across all decentralised exchanges. According to DeFiLIama, the monthly trading volume has soared above $170 billion. It has generated around $1.13 billion in cumulative revenue. The total cumulative perp volume has soared above $4.46 trillion.
Recently, HYPE has flipped the biggest memecoin, Dogecoin (DOGE), and became the 9th biggest cryptocurrency by market capitalisation, according to CoinMarketCap.
Grayscale HYPG ETF Explained: What It Means for Investors
On June 3, Grayscale, the leading digital asset management company, announced that it is rolling out its Hyperliquid Staking ETF (HYPG) on US exchanges. This is the third major HYPE ETF after the launch of Bitwise’s BHYP and 21Shares’ THYP.
| ETF | Issuer | Launch Date | Fee |
| HYPG | Grayscale | June 3, 2026 | 0.29% ✓ Lowest |
| THYP | 21Shares | May 12, 2026 | 0.30% |
| BHYP | Bitwise | May 15, 2026 | 0.34% (after promo) |
Grayscale’s HYPE ETF has grabbed the attention of investors as it comes with staking rewards, which are generally around 2.2% to 2.3% per year. HYPG is charging the lowest competitive management fee, which is around 0.29%. In comparison to the other two HYPE ETFs, this low fee has made it the most attractive HYPE ETF.
This HYPG is a regulated option for investors where they access HYPE shares via regular brokerage accounts. These kinds of crypto ETFs are opening a door for retirement accounts (IRAs), registered investment advisors (RIAs), and institutional portfolios to access HYPE without directly holding it in crypto wallets.
According to the official announcement, Grayscale has seeded the HYPG with a major investment of around 2 million HYPE tokens through Hyper Holdings Global LP, which is around $115 million at the time of writing. This is the major liquidity injection for HYPG.
However, the launch of HYPG can not guarantee that it will boost the token’s price. While it can open a door for institutional adoption, the inflows in HYPG on the upcoming day will decide its impact on the cryptocurrency. For example, in the last few days, Bitcoin ETFs have recorded millions of dollars of outflows on a daily basis, which has decreased the price of Bitcoin (BTC).
Arthur Hayes’ $150 Price Target: The Bull Case Explained
Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, has shared his forecast for the Hyperliquid (HYPE) token, where he set the price target of $150 by August.
In his personal blog post, he said, “If the market believes that $HYPE can continue syphoning volumes away from CEXs and add new features to accelerate revenue growth, then $HYPE can pump in absolute terms. My August 2026 target price for $HYPE is $150, which is roughly 5x higher than its current price of ~$30 at the time of writing this essay.”
The recent upward momentum in cryptocurrency is clearly suggesting that the Hyperliquid ecosystem is growing amid regulatory clarity and the launch of ETFs from Grayscale. However, from the current level at around $75, the price target of $150 is almost double. Also, the bearish sentiment in the crypto market might delay this price target for the next year. At this point, the focus must be on the psychological barrier at around $100.
Hyperliquid 2026 Outlook: What to Watch Next
While Hyperliquid’s ecosystem is growing rapidly, the cryptocurrency might see some upward momentum in the next few months. On the flip side, there is a token unlocking event scheduled on June 6, which might create short-term pressure for the HYPE.
As of now, trading experts are watching the $100 mark as a major psychological mark amid the bearish momentum in the overall crypto market. According to technical analysis on TradingView, the extension for the Fibonacci extension is revolving around the 1.618 level at a price of around $110. At the same time, there is a major resistance level at around $97. If it gets a strong rally, then there is another major resistance level at around $163.
The network is also expected to see some growth through HyperEVM. Apart from this, there is a buzz around the Season 2 airdrop. Also, it is planning to expand the network through cross-chain bridges.
In May, Jeffrey Sprecher, CEO of Intercontinental Exchange (ICE), praised Hyperliquid while giving a speech at the Bernstein conference. He said, “This Hyperliquid that we’re talking about, if you haven’t heard about it, it’s bigger than NASDAQ.” This statement is the major recognition for this layer 1 blockchain project.
All in all, Hyperliquid has already proven its dominance in the perpetual futures market, and with regulatory approval of the perpetual market, there are high chances that its native cryptocurrency might see some upward swings.
