WHY IS HYPE STILL BOOMING

Original Odaily Daily Planet (@OdailyChina)

Author | Asher (@Asher 0210)I'm not sure

UNDER THE CURRENT ENCRYPTION LINE, IF THERE'S ANOTHER COIN THAT TURNS THE MARKET ON, IT'S PROBABLY HYPE。

It's not like I'm going to go to schoolHYPE TO BTC, BNB TO RECORD HIGH EXCHANGE RATE, HYPE/BTC CURRENT 0.0006249, HYPE/BNB CURRENT 0.075. THIS MEANS THAT THE STRENGTH OF HYPE IS NOT SIMPLY FOLLOWING THE MARKET BACK, BUT RATHER CONTINUING TO WIN ENCRYPTED MAINSTREAM ASSETS SUCH AS BTC, BNB。

The pastMore external understanding of Hyperliquid than high performance Perp DEXI don't know. But now, it is clear that the money is not just buying a platform token for trading at the centre, but that the bets Hyperliquid can put more asset types, more liquidity and more trading scenarios into the same chain system。

The price expression of the HYPE is also that the market is redefining the value of Hyperliquid。

In this paper, Odaily Daily Planet will break down its upward logic from several key changes。

THE COMPLIANCE BUYOUT FROM THYP TO BHYP, HYPE IS BEING OPENED

THE FIRST EXTERNAL CATALYZING OF THE RECENT RISE OF THE HYPE IS THE OPENING OF THE ETF CHANNEL。

At present, two regulatory agencies have started launching ETF products around Hyperliquid. May 12, 21 Shares listed Hyperliquid ETF, code THYP; May 15, Bitwise listed Hyperliquid ETF, code BHYP. According to the data, as of May 18th21 Shares Hyperliquid ETF THYP & nbsp; total historical net inflows amounted to $1290.10 million; and total historical net inflows of Bitwise Hyperliquid ETF BHYP amounted to $2,044.6 million。

And more importantly, Bitwise didn't stop at issuing ETF. Yesterday, Bitwise announced that he would be under the flag10 per cent of the revenue from the management fee of BHYP Hyperliquid ETF is used to hold HYPE on the company ' s balance sheet, and the related HYPE holdout will also be pledged。

IT TURNS THE ETF NARRATIVE FROM A SIMPLE PRODUCT TO A POTENTIAL CONTINUOUS BUY。The larger the ETF, the higher the revenue from management fees, the higher the amount that Bitwise theoretically spends on increasing the HYPE. In the short term, this part of the fund may not immediately influence prices; in the long run, however, it links ETF growth, the revenue of the institution and the holding of the HYPE。

IN OTHER WORDS, ETF BRINGS NOT ONE-TIME HEAT TO HYPE, BUT A NEW FINANCIAL CHANNEL. THE HYPE BEGAN TO MOVE FROM ENCRYPTED PRIMARY ASSETS TO A PLATFORM WHERE TRADITIONAL FUNDS CAN ALSO PARTICIPATE IN PRICING。

USDC returns Hyperliquid, hype plus $400,000 per day of potential purchases

The second reason for the recent increase in HYPE is that, following the return of USDC to Hyperliquid, the market began to recalculate the stable future benefits of the agreement and whether it could continue to flow to HYPE for repurchase。

According to the Hyperliquid official announcement, Coinbase will be the fund deployer, and the Circle will be responsible for the deployment of the CCTP and the original cross-chain infrastructure, and both parties have committed to pledge the HYPE to activate AQAv2. This meansThe USDC return is not just an ordinary stable currency access, but a new mechanism set up by Coinbase, Circle and Hyperliquid around the distribution of original USDC, cross-chain liquidity and reserve revenues。

The key is that Coinbase will later share most of the USDC reserve gains with the Hyperliquid agreement. Although a specific share has not yet been published officially, Hyperliquid may actually receive about 90 per cent of the reserve income if reference is made to the previous USDH revenue allocation mechanism. SoThe market also understands AQAv2 as an agreement-sharing mechanism established by Hyperliquid for USDC reserve earnings。

ACCORDING TO COMMUNITY ESTIMATES, USDC RESERVE RETURNS CORRESPOND TO ABOUT $160 MILLION OF ANNUALIZED INCOME AT A SCALE OF $4.7 BILLION AND AN ANNUALIZED RATE OF RETURN OF 3.8 PER CENTCONVERT IT TO ABOUT $440,000 A DAYI don't know. Once the AQAv2 interface is complete and fully operational, Hyperliquid will no longer rely solely on transaction fees to repurchase the HYPE, but may produce a relatively stable source of cash flows。

And this is where USDC returns to the real impact of HYPE pricing. In the past, the strength of HYPE buy-backs depended mainly on the volume of transactions, the more dynamic the transaction, the greater the revenue and the ability to buy back; however, with the addition of USDC reserve proceeds, the source of HYPE buy-backs no longer depended solely on transaction fees, but also began to depend on how much stability money Hyperliquid could deposit. In other wordsTHE TRANSACTION FEE BUY-BACK REPRESENTS THE PLATFORM ' S TRADING ACTIVITY, WHILE THE USDC RESERVE PROCEEDS BUY-BACK REPRESENTS THE PLATFORM ' S ABILITY TO SINK FUNDS。THE MARKET RE-PRICING OF HYPE MAY BE DUE TO THE OBSERVATION THAT HYPE'S REPURCHASE STORY IS NO LONGER BASED SOLELY ON TRADE HEAT。

Hyperliquid, access to HIP-4, and to predict the market

BEYOND RWAHyperliquid also reached out to the most popular track in the encryption ring this year -- predicting the marketI don't know。

On 2 May, Hyperliquid launched the BTC Two-dollar Results Contract on the main online line HIP-4 Outcome Markets. A simple understanding is that the user can trade at a given point in time whether the BTC price is higher than the specified price, the contract price fluctuates between 0.001 and 0.999, corresponding to the market ' s pricing of the probability of the event occurring; the settlement after the event is 1 and, if not, 0。

Predictefy shows that on the first day of the HIP-4, the BTC price-related events contract deal amounted to $6.15 millionIn this sub-market alone, the volume of Hyperliquid transactions is well above those of Kalshi, Polymarket and other forecast markets。

FOR HYPE, THE MEANING OF HIP-4 IS NOT JUST AN ADDITIONAL PRODUCT FUNCTION, BUT A COMBINATION OF THE FORECAST MARKET AND THE HYPE PLEDGE, COST AND BUY-BACK MECHANISM. AS DESIGNEDAT THE TIME OF THE FUTURE UNLICENSED DEPLOYMENT OF THE PREDICTED EVENTS, MARKET CREATORS WOULD NEED TO PLEDGE 1 MILLION HYPES, WHICH IS HIGHER THAN THE 500,000 REQUIRED FOR THE DEPLOYMENT OF THE PERMANENT MARKET AT HIP-3。Each pledge seat can support a rolling and periodic market and can be reused after settlement; the pledge assets may also be forfeited in the event of problems such as the manipulation of prophecies, unusual market conditions or prolonged failures。

Therefore, the HIP-4 presents not a simple notion of predictive markets, but a more direct value capture path. More unlicensed deployment-forecasting events mean more HYPE pledge requirements, more trade volumes mean more cost revenue, and eventually this part of the cost will go back to Hyperliquid’s original buy-back logic。

RWA Unsettled Contracts are highly innovative, the ceiling of Hyperliquid is not just Perp DEX

Except for ETF and USDC returns, RWA is continuing to push the Hyperliquid trading boundary out。

The data show that the Hyperliquid platform, RWA, has grown to $2.6 billion in open contracts, a record high and a doubling of two months ago. This data suggests that Hyperliquid is no longer the only recipient of encrypted asset transaction needs such as BTC, ETH, SOL, and that real world assets are beginning to grow in scale in their chain trading systems。

It's critical for HYPE's pricing. If Hyperliquid is only a Perp DEX, the market gives it valuation anchors mainly for encryption cycles, volume of transactions and fees. But RWA opens up another layer of space where stocks, commodities, precious metals, Pre-IPO assets, etc., can be the subject of a 7x24-hour trade in the chain。

The meaning of RWA for Hyperliquid is not to open a few more deals, but to pull the platform out of internal competition in the encrypted market. Perp DEX is the person who can eat more encrypted transactions than he is, but RWA is the person who can move the demand for transactions under the chain. If Hyperliquid can continue to be a large part of the market, the HYPE pricing will no longer follow only the encrypted market trading cycle, but will begin to bind more realistic asset trading needs。

THE SEC PLANS TO INTRODUCE A TOKENIZATION STOCK EXEMPTION

The potential deregulation of monetized shares by SEC continues to raise the forward ceiling of Hyperliquid。It has been reported that SEC is preparing to introduce an innovative exemption for trade in tokenized shares, allowing tokens linked to shares of publicly traded companies to be traded on encrypted platforms. In some cases, the platform may not need to have full access to broker-dealer or to exchange registration, and a third-party issue of monetized shares may not even require the consent of the listed company。

It means something to Hyperliquid, not to make it a monetized stock from scratch, but to give it a more regulatory imagination in the direction of RWA, which it is moving forward. On the Hyperliquid platform, real-life asset transactions, such as equities, Pre-IPO assets, have begun to grow in scale and RWA contracts have reached new heights. If United States regulation really opens the test window for monetized stocks, the demand for such chain transactions may be further amplified。

For Hyperliquid, the clearer the regulatory border, the less resistance real-life asset chain transactions can have; and the more easily fed, often not individual asset issuers, is a platform for order books, liquidity and settlement。If tokenized stocks are converted from grey trials to compliance increments, the RWA business that Hyperliquid has come up with is not just an early attempt, but could be the main battleground for the next round of trading competition。

The basics are still getting stronger, but the short-line has entered the multi-spaced game zone

HYPE's upward logic is becoming clearer. ETF opens the compliance finance portal, USDC returns lead to potential buyback increases, RWA, projected markets and monetized stocks continue to widen the trade boundary of Hyperliquid, and these changes point in the same direction -Hyperliquid is no longer just a Perp DEX, but is expanding into a larger chain trading system。

But the long-term logic does not mean that short-term prices will continue to rise unilaterally. According to the data on the chainHYPE IS CURRENTLY FACING A LARGE-SCALE MULTI-EMPTY WHALE, WITH TOP1 AND TOP2 COMPETITOR POSITIONS TOTALLING OVER $60 MILLION。Mostly, the next growth space for Hyperliquid is based on short-term, too fast-growing pressure. As the size of the cobalt expands, the short-term HYPE price may no longer be a fundamental pricing, but may also be affected by leverage clearing, financial rates and market sentiment。

As a result, the short-term price movement of hype is not easy to judge, much more depending on who is forced out first on both sides. But with the length of time, the basic face of hype is still worthy of the market. Hyperliquid continues to expand trading assets, financial entry and source of income, and HYPE also assumes a more central value vehicle role in buy-back, pledge and cost capture。

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