Hyperliquid Hits New All-Time High. HYPE Market Cap Approaches Dogecoin, Will the $150 Myth Come True?

TradingKey - On May 21, the price of the cryptocurrency Hyperliquid ( HYPE) broke above $60, surpassing the record of $59 set last September to hit a new all-time high. As of press time, the price of HYPE has pulled back to $57, with a market capitalization of $14.6 billion, ranking tenth globally, trailing only Dogecoin ( DOGE ).

Amid volatility and even weakness in the broader crypto market, HYPE has staged an independent rally, capturing the attention of global crypto investors. However, what exactly is HYPE? Why is its rally so aggressive, and will it continue to rise?

What is Hyperliquid (HYPE)?

Hyperliquid is the world's largest decentralized derivatives exchange by trading volume and a leading high-performance financial Layer 1 (L1) blockchain. It aims to deliver extreme speeds comparable to centralized exchanges (CEX) while achieving full decentralization and on-chain transparency to ensure a superior user experience.

HYPE is the native token of Hyperliquid, with a maximum supply of 1 billion tokens and a current circulating supply of 254 million. It serves three core functions within the ecosystem: (1) Gas Fees: When developers deploy DeFi applications such as lending or money markets on the Hyperliquid chain, users must pay transaction fees in HYPE; (2) Staking and Rewards: Holders can stake HYPE with network nodes to earn yields; (3) Community Governance: Voting rights for major decisions, including future token listings and fee adjustments.

What factors are driving HYPE to record highs?

Since February this year, HYPE prices have continued to strengthen, successfully breaking through the $60 mark. Its market capitalization has surged into the global top ten, putting it on par with established crypto assets such as DOGE and ZEC, primarily driven by three positive catalysts:

Spot ETFs and Grayscale's Accumulation: The U.S. spot HYPE ETFs launched by Bitwise and 21Shares this month have seen an incredible pace of capital inflows. Furthermore, on-chain data shows that wallets associated with Grayscale have been aggressively accumulating in the secondary market, purchasing over 680,000 HYPE—valued at more than $30 million—in the past week alone. This massive influx of institutional capital has become the strongest driving force.

Opening the Coinbase Pipeline: Coinbase, the leading global regulated exchange, has officially become the official USDC liquidity provider for Hyperliquid, allowing mainstream traditional capital to flow seamlessly into its ecosystem.

FOMO Sentiment: Bitcoin ( BTC ), Ethereum ( ETH ), Binance Coin ( BNB) and other mainstream coins continue to trade sideways. In a market lacking quality targets, HYPE's robust real-profit fundamentals have made it a highly sought-after sector for global capital as both a defensive and offensive play, while simultaneously triggering community FOMO.

Can HYPE really reach $150?

On May 21, BitMEX co-founder Arthur Hayes once again voiced support for HYPE, on social media posted stating, "HYPE is drawing closer to its all-time high, and the $150 target is also nearer than before." However, can HYPE's price truly reach such a level?

If HYPE reaches $150, its FDV would reach $150 billion, meaning that as a public chain, it would need to at least reach the level of Solana (SOL). Furthermore, as a trading platform, Hyperliquid would need to replace some traditional CEXs (such as Binance and OKX) and devour the vast majority of DeFi market share. In the current crypto environment, Hyperliquid is unlikely to achieve this overtake unless these projects encounter "black swan" events that allow it to absorb market share, or if Wall Street seeks to create a flagship example to manufacture a pseudo-bull market.