Author: Finn Grant, encryption writer; Translator: @金财经xz

HYPE, the native token of the Hyperliquid network, just hit an all-time high of $61.84 (at press time). The milestone comes as most other large-cap cryptocurrencies are struggling.

In this article, we examine what is driving HYPE’s current rally. In fact, there are several on-chain and off-chain factors worth paying attention to that can help us understand this token’s rise.

First, is this growth driven by institutional adoption or by the expanding utility of the network? Or maybe both?

Summary of this article:

A large amount of on-chain evidence shows strong institutional interest in HYPE through recent ETF inflows and acquisitions.

Pre-IPO (pre-IPO) trading functionality provides a safe haven from crypto market downside and counters the price discovery mechanism of traditional finance (TradFi).

Hyperliquid has evolved into a global financial super application and is driving huge transaction volumes.

1. Institutional fund inflows and ETFs

Institutional interest in HYPE is one of the biggest drivers in the market right now. Companies like Bitwise, Grayscale, and 21Shares are driving significant ETF inflows and acquisitions, helping the token reach a $15 billion market cap.

The U.S. Spot HYPE ETF first launched on May 12 with the 21Shares Hyperliquid ETF. At the time, HYPE’s market capitalization was just over $10 billion. However, the HYPE ETF's total net assets currently sit at just under $60 million. This alone is not enough to explain the token’s $5 billion increase in market capitalization in less than two weeks.

Nonetheless, new entrants into the HYPE ETF space are also driving up prices. Over the past two weeks, Grayscale, which filed a Form S-1 for the HYPE ETF with the SEC in January, has purchased and pledged a cumulative $25 million worth of HYPE.

You can track HYPE wallets associated with Grayscale:

0x300e402193bc8F27d408FceaEBCb7eD6E5811822

0x6183AeCb22b09b4CB167F2B42C611243C7E74318

2. Pre-IPO transactions and traditional financial disruption

A key benefit of the Hyperliquid platform, and one of the core drivers of trading volume and network usage, is its ability to support trading of pre-IPO stocks - such as SpaceX.

Stock trading provides traders with a unique defensive shield, helping them diversify risk from broader crypto market declines by extending capital allocation into traditional equity speculation.

The upcoming IPOs of heavyweight companies such as Anthropic, OpenAI and SpaceX are continuing to drive attention and transaction volume on the platform.

The recent Cerebras IPO is an interesting case study regarding pre-IPO stocks. It shows that Hyperliquid’s efficiency in executing price discovery is comparable to mainstream traditional financial institutions, achieving fair competition between decentralized exchanges and established markets.

3. TVL, transaction volume and network usage

The Hyperliquid ecosystem is booming in many aspects. This month, Hyperliquid’s total value locked (TVL) once again exceeded the $5 billion mark. The last time it topped $5 billion was at the peak of the bull market last October.

Hyperliquid perpetual contract trading volume increased 47% in the past 24 hours to $8.8 billion, according to CoinGecko data. Open Interest is at a 6-month high at $9.5 billion.

4. Financial super application?

All of the above features directly reinforce the overarching narrative surrounding the platform: to be the super app for global finance. Hyperliquid founder Jeff Yan believes the platform will eventually accommodate the entire financial system.

Hyperliquid is bridging the gap between decentralized technology and traditional stock markets. With the platform's robust pre-IPO market, continued inflows of institutional ETF funds, and a significant jump in network trading volume, HYPE is operating in a significantly advantageous range and has exceeded its previous historical high.

HyperEVM—Hyperliquid’s smart contract layer—is now supported by Arkham Intel. This means you can track HYPE whales and top holding addresses and leverage the full power of Arkham Intel to analyze HyperEVM data.