Hyperliquid market liquidity hits $8.8B as revenue surges 4x: Can HYPE cross $100?

Hyperliquid’s market liquidity has surged to a record level, outpacing the level seen at the peak of the recent bull market last October. According to DeFiLlama data, the platform’s Open Interest (OI) hit $8.8 billion. 

This hinted at renewed trading activity as Bitcoin extended its recovery above $85K for the first time since January. Against the backdrop of this renewed risk appetite, speculative traders thronged the cross-asset trading platform, pushing its OI to a record high. 

And since Hyperliquid directs most of the generated revenue to HYPE buyback, the traction was definitely expected to spill over to the token. 

Hyperliquid revenue doubles, lifting HYPE higher

In Q2, Hyperliquid’s total daily average revenue hovered around $1.5M. However, this jumped and doubled to $3M in Q3. In mid-August alone, the revenue tripled to over $5M. 

This also alluded to a greater pace of HYPE buybacks, nearly a 4x increase in Q3. The weekly revenue dedicated to assistance fund buybacks surged from about $5M to $20M in August. Interestingly, it is during this period that HYPE pushed to $80 for the first time. 

Will HYPE reclaim $100?

Thanks to the broader market’s recovery, the altcoin has been printing new highs every month. In September, it hit a new all-time high (ATH) of $96, marking a whopping 88% gain in the last two months. 

This bullish uptrend could extend itself, especially as crude oil prices try to slip below $90 and calm inflation fears; the risk-on sentiment could deepen. If so, the immediate bullish targets for HYPE could be $102 and $118. Put differently, it could soon cross $100 for the first time. 

However, institutional players expect the $100-psychological level to be crossed later in Q4, with 52% odds in December. For late September and October though, the chances were at 27%-47%. 

Put differently, some of the institutional players expect the rally to cool off after the massive 88% rally. This can be further illustrated by greater hedging (puts buying) against a potential pullback to $85-$88. 

Overall, HYPE has enjoyed a massive 88% run in Q3, thanks to renewed trading activity that has doubled revenue and nearly quadrupled the buyback program. However, some institutional players fear the altcoin may be due for a slight correction as it nears $100. 

Final Summary

• Hyperliquid hit record market liquidity of $8.8B, driving revenue to increase 3x in Q3. 
• This fueled HYPE’s 88% explosive upswing since August, but it also fueled greater hedging activity.