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HYPE token's 50% surge is a story of crypto-traditional market convergence, treasury firm says

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HYPE token's 50% surge is a story of crypto-traditional market convergence, treasury firm says

HYPE has surged 50%, outperforming bitcoin, ether and the CoinDesk 20 index by a big margin.

By Omkar Godbole, AI Boost|Edited by Shaurya Malwa
Updated Jan 28, 2026, 10:49 a.m. Published Jan 28, 2026, 8:02 a.m.
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HYPE rally. (CoinDesk)

What to know:

  • Hyperliquid's HYPE token has surged more than 50% to $34.57 this week, far outpacing bitcoin, ether and the broader crypto market, as trading activity on the platform accelerates.
  • The token rally represents the merging of traditional assets with the crypto world, according to Hyperion DeFi, which is a HYPE treasury company.
  • Originally a crypto perpetuals exchange, Hyperliquid has expanded into tokenized trading of equity indices, individual stocks, commodities and major fiat pairs via its HIP-3 upgrade.

When the crypto market emerged more than a decade ago, its proponents pitched it as "us vs. them" – a rebel fight against Wall Street and traditional markets.

Over time, the great divide slowly closed with the debut of popular traditional instruments like futures and ETFs tied to cryptocurrencies, and now the two worlds have merged on decentralized platforms.

STORY CONTINUES BELOW
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The market-beating rally in Hyperliquid's HYPE token, a decentralized exchange, reflects just that, according to Hyunsu Jung, CEO of Nasdaq-listed Hyperion DeFi. It's the first US publicly listed company building a long-term strategic treasury of HYPE tokens. As of late last year, it held over 1.4 million HYPE tokens.

The HYPE token has surged over 35% to $34 this week, leaving bitcoin BTC$89,347.10, ether ETH$3,017.15 and other major tokens far behind. Bitcoin has risen just 1.84%, while the CoinDesk 20 Index, a broader market gauge, has gained over 4%, according to CoinDesk data.

"This is a story of the convergence of all asset classes under the megatrend of tokenization in an increasingly financialized world - more and more of which is happening on Hyperliquid," Hyunsu said, explaining the HYPE rally.

While Hyperliquid started as a decentralized exchange for trading perpetual futures tied to cryptocurrencies, it has since expanded its product suite to include trading in equity indices, stocks, commodities, and major fiat currency pairs.

This shift stems from the Hyperliquid Improvement Proposal-3 (HIP-3), launched in October 2025, which allows anyone staking 500,000 HYPE tokens to freely create markets for non-crypto assets.

The timing couldn't have been better, as traditional assets, especially gold and silver, have gone bonkers since late 2025, driving huge trading volumes and fees in Hyperliquid's markets for those assets. The silver-USDC market has registered a trading volume of over $1 billion in the past 24 hours alone. The numbers look even more impressive on a broader scale.

"Within just 3 months of this upgrade, Hyperliquid’s HIP-3 markets have captured over $1B in Open Interest, ~$25B in total trading volume and over $3M in total fees, all transparently on-chain," Hyunsu noted. "Users globally are now able to access and trade equities (for example those in countries that could not access US equities) or get exposure to the incredible metals trade over the last few months."

The boom in fees translates into higher prices for HYPE via a token-burning mechanism. Hyperliquid burns HYPE based on protocol fees through an automated mechanism, with up to 97% of fee revenue used to buy back HYPE and remove coins from circulation.

"It's a deflationary mechanism not found in any other blockchain ecosystem, and an incredible structural tailwind for our treasury," Hyunsu said.

He explained that the nonstop 24/7 availability of traditional markets on Hyperliquid allows traders to react to global events, helping to achieve fairer spot prices outside regular hours and even on weekends when traditional markets are closed.

HyperliquidhypeMarkets
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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The Dollar Index hit a four-year low, while altcoins surged led by HYPE, JTO and Solana memecoin PIPPIN.

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BitcoinWorld Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals The financial world often keeps us on our toes, and Wednesday was no exception. Investors watched closely as the US stock market concluded the day with a mixed performance across its major indexes. This snapshot offers a crucial glimpse into current investor sentiment and economic undercurrents, prompting many to ask: what exactly happened? Understanding the Latest US Stock Market Movements On Wednesday, the closing bell brought a varied picture for the US stock market. While some indexes celebrated gains, others registered slight declines, creating a truly mixed bag for investors. The Dow Jones Industrial Average showed resilience, climbing by a notable 0.57%. This positive movement suggests strength in some of the larger, more established companies. Conversely, the S&P 500, a broader benchmark often seen as a barometer for the overall market, experienced a modest dip of 0.1%. The technology-heavy Nasdaq Composite also saw a slight retreat, sliding by 0.33%. This particular index often reflects investor sentiment towards growth stocks and the tech sector. These divergent outcomes highlight the complex dynamics currently at play within the American economy. It’s not simply a matter of “up” or “down” for the entire US stock market; rather, it’s a nuanced landscape where different sectors and company types are responding to unique pressures and opportunities. Why Did the US Stock Market See Mixed Results? When the US stock market delivers a mixed performance, it often points to a tug-of-war between various economic factors. Several elements could have contributed to Wednesday’s varied closings. For instance, positive corporate earnings reports from certain industries might have bolstered the Dow. At the same time, concerns over inflation, interest rate policies by the Federal Reserve, or even global economic uncertainties could have pressured growth stocks, affecting the S&P 500 and Nasdaq. Key considerations often include: Economic Data: Recent reports on employment, manufacturing, or consumer spending can sway market sentiment. Corporate Announcements: Strong or weak earnings forecasts from influential companies can significantly impact their respective sectors. Interest Rate Expectations: The prospect of higher or lower interest rates directly influences borrowing costs for businesses and consumer spending, affecting future profitability. Geopolitical Events: Global tensions or trade policies can introduce uncertainty, causing investors to become more cautious. Understanding these underlying drivers is crucial for anyone trying to make sense of daily market fluctuations in the US stock market. Navigating Volatility in the US Stock Market A mixed close, while not a dramatic downturn, serves as a reminder that market volatility is a constant companion for investors. For those involved in the US stock market, particularly individuals managing their portfolios, these days underscore the importance of a well-thought-out strategy. It’s important not to react impulsively to daily movements. Instead, consider these actionable insights: Diversification: Spreading investments across different sectors and asset classes can help mitigate risk when one area underperforms. Long-Term Perspective: Focusing on long-term financial goals rather than short-term gains can help weather daily market swings. Stay Informed: Keeping abreast of economic news and company fundamentals provides context for market behavior. Consult Experts: Financial advisors can offer personalized guidance based on individual risk tolerance and objectives. Even small movements in major indexes can signal shifts that require attention, guiding future investment decisions within the dynamic US stock market. What’s Next for the US Stock Market? Looking ahead, investors will be keenly watching for further economic indicators and corporate announcements to gauge the direction of the US stock market. Upcoming inflation data, statements from the Federal Reserve, and quarterly earnings reports will likely provide more clarity. The interplay of these factors will continue to shape investor confidence and, consequently, the performance of the Dow, S&P 500, and Nasdaq. Remaining informed and adaptive will be key to understanding the market’s trajectory. Conclusion: Wednesday’s mixed close in the US stock market highlights the intricate balance of forces influencing financial markets. While the Dow showed strength, the S&P 500 and Nasdaq experienced slight declines, reflecting a nuanced economic landscape. 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A3: Mixed performances in the US stock market can be influenced by various factors, including specific corporate earnings, economic data releases, shifts in interest rate expectations, and broader geopolitical events that affect different market segments uniquely. Q4: How should investors react to mixed market signals? A4: Investors are generally advised to maintain a long-term perspective, diversify their portfolios, stay informed about economic news, and avoid impulsive decisions. Consulting a financial advisor can also provide personalized guidance for navigating the US stock market. Q5: What indicators should investors watch for future US stock market trends? A5: Key indicators to watch include upcoming inflation reports, statements from the Federal Reserve regarding monetary policy, and quarterly corporate earnings reports. These will offer insights into the future direction of the US stock market. Did you find this analysis of the US stock market helpful? 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