Crypto enthusiasts have ample reasons to be thrilled about Hyperliquid (CRYPTO: HYPE). In just one year, it has surged by an impressive 260%, positioning itself among the world’s top 10 cryptocurrencies by market capitalization. Remarkably, the HYPE token reached a new record high of $92 on September 18.
In comparison, Bitcoin remains at a steep 36% lower than its peak of $126,000 from October. It now seems improbable that it will regain the $100,000 mark before the year concludes.
Did you miss AI’s initial phase? The next stage could be 15 times larger. Many investors believe they missed the AI revolution by not buying Nvidia back in 2005. However, analysts suggest we’re still at the conclusion of the “Act 1” phase, which focuses on research and development. The “Act 2” phase will involve a global expansion. Continue »
At first glance, Hyperliquid and Bitcoin seem to be diverging significantly in their trajectories. Should you really overlook Bitcoin in favor of investing in Hyperliquid?
The perpetual futures market is becoming saturated
Hyperliquid is a decentralized exchange for cryptocurrencies that has gained significant popularity, primarily due to its unique offering of perpetual futures contracts for adventurous crypto traders.
These perpetual futures (commonly referred to as “perps”) offer high leverage potential, significantly increasing the opportunity for larger returns. They also permit traders to speculate on both rising and falling prices of cryptocurrencies, allowing for profit generation in both bearish and bullish market conditions.
Until mid-2026, trading perpetual futures was largely prohibited in the U.S. due to their perceived risks. However, this changed in late May when the Commodity Futures Trading Commission (CFTC) approved the trading of perpetual futures.
Immediately, prediction market Kalshi joined the fray, now offering perpetual futures contracts on Bitcoin and 17 other cryptocurrencies (including Hyperliquid). They have proven to be immensely popular since day one.
Now, numerous competitors are eager to participate. Notable players include Robinhood Markets and Coinbase Global, suggesting the perpetual futures market might be reaching saturation point.
Hyperliquid’s introduction to the U.S. market
Currently, U.S. users cannot access the Hyperliquid trading platform, as it is based in Singapore and lacks regulatory approval for operation in the U.S. While former President Donald Trump has shown support for Hyperliquid’s U.S. expansion, final regulatory approval is still pending.
In the meantime, Hyperliquid has crafted a smart workaround by teaming up with Payward, the parent organization of the Kraken cryptocurrency exchange. This partnership enables limited U.S. customers to engage in perpetual futures trading. While the trades are conducted on Hyperliquid’s blockchain, they are cleared and settled through Bitnomial, a U.S.-regulated exchange and clearinghouse owned by Payward.