coindesk.com
$HYPE, the token of leading decentralized perpetual exchange Hyperliquid, is now the fifth-largest digital asset by futures open interest.
At the time of writing, the dollar value of the number of active or open bets in $HYPE futures (perpetual and standard) traded worldwide was $2.06 billion, according to data source Coinglass.
That placed $HYPE ahead of dogecoin
$HYPE's futures market leadership over $DOGE and many other cryptocurrencies with bigger market values likely represents the growing popularity of purpose-built blockchain products.
Hyperliquid is a decentralized exchange that focuses squarely on providing an on-chain perpetual futures market and is built on its own Layer 1 blockchain. Last week, Hyperliquid accounted for 60% of the total onchain perpetuals trading volume of $94.3 billion, according to data source @uwusanauwu's Dune-based tracker.
The $HYPE token is used for economic incentives, fee payments and decentralized governance, allowing holders to participate in the decision-making process. The protocol utilizes 97% of the trading fees collected from users to buy back $HYPE, thereby constantly adding bullish pressure to the market.
"92.78% of protocol (HyperCore) revenue goes to buying back $HYPE on the open market — over $1B annually in buybacks," Hyperliquid Hub said on X. "Major firms and funds are actively adding $HYPE to their portfolios and top-tier market makers from traditional finance are trading on HyperCore’s CLOBs, creating the deepest liquidity in crypto."
$HYPE has chalked out over a four-gold rally to a record price of $44 in three months. The rally happened alongside a booming open interest and positive annualized funding rates, which surged to over 100% at one point, signaling strong demand for bullish leveraged bets.