The decentralized finance (DeFi) space is witnessing a seismic shift as ASTER, a cryptocurrency backed by Binance founder Changpeng Zhao, makes a stunning debut. As the token continues to ride the wave of initial excitement, Hyperliquid, which previously dominated the DeFi world, started showing a negative trend.
Although the HYPE token reached an all-time high, coinciding with the Aster TGE launch, it suffered a major decline amid the increasing hype surrounding ASTER. With Aster’s technical architecture differentiating itself from Hyperliquid’s single-layer strategy, the competition in the perpetuals market is expected to heat up, driving growth and adoption in the DeFi space.
HYPE Token Hits ATH, But Plummets
Since its launch in January 2025, Hyperliquid’s HYPE token has been showing a positive inclination, with its price slowly climbing through the ladder despite fluctuations. The past month has been a rollercoaster ride for the cryptocurrency, with a mix of price movements that have left investors eagerly watching the market.
In the initial half of the month, the token traded in a narrow range between $42 and $50, indicating a period of consolidation. However, this negative sentiment was short-lived, as the token suddenly surged, first reaching an all-time high of $57 and then breaking new ground by achieving a new ATH of $59.29 just yesterday. This dramatic price action underscores the token’s volatility and the market’s responsiveness to shifts in sentiment and activity.
The trajectory was indeed impressive as it overpowered major cryptocurrencies like Bitcoin, Ethereum, and XRP. While the altcoin witnessed an increase of about 40%, supporters like BitMEX founder Arthur Hayes celebrated it, calling it an “All-time Hype.”
However, the cryptocurrency is now down by about 3% over the past 24 hours, currently trading at $56.10. Despite this daily dip, the token is up by a massive 34% over the past month, according to CoinMarketCap.
Key Drivers of the HYPE Token’s Price Rally
This surge coincided with many developments inside and outside the crypto market. For instance, the rally could be read as the token’s response to the Federal Reserve’s interest rate cut. On Wednesday, the Fed reduced the rate by 25 basis points for the first time since December 2024, a development that Bitcoin and altcoins cherished.
Another major event that coincided with the Hype token price surge was the Aster TGE Launch that transformed APX Finance, a derivatives platform, into AsterDEX. ASTER, which positions itself as a strong competitor to HYPE, experienced a remarkable rally on its debut. Reportedly, it skyrocketed by a massive 1,650% in 24 hours, with its total platform volume and TVL hitting $1.5 million and $1 billion, respectively.
HYPE vs ASTER
Just hours before Hyperliquid reached an ATH, Binance founder Changpeng Zhao shared a chart for ASTER, stating, “Well done! Good start. Keep building!” Untouched by the rival’s rally, the HYPE token continued its uptrend. This underscores the growing competition between Hyperliquid and Aster.
CZ’s support for Aster has caught the eyes of enthusiasts and analysts alike. Hunters of Web3 founder “LANGERIUS” wrote, “CZ rarely shares charts. But he posted ASTER. Why? Because it’s a direct Hyperliquid rival, and Hyperliquid keeps stealing Binance’s market share.”
Analyst OG Crypto Boss took to X to highlight this escalating competition between these tokens. His X post read, “Hyperliquid has been the best perps DEX over the past year. Suddenly, AsterDEX appears.”
What’s Next?
Driven by its recent performance, analysts and experts remain bullish about a potential rally. However, technical indicators tell a different story. Reportedly, the cryptocurrency is expected to continue its downtrend.
This view is further corroborated by CoinCodex’s HYPE Price Prediction. According to their analysis, HYPE’s largest price point in 2025 ends in September. This indicates that the token is less likely to surge in the short term. However, with the lowest level predicted to be around $44, it appears that the token is not poised for a significant downturn, providing a relatively stable outlook for investors.
