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Aster vs Hyperliquid: BNB Chain DEX Perps Volume Derails the HYPE Train

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In brief

  • Binance Chain has overtaken Hyperliquid in 24-hour perpetual volume, helped along by new DEX Aster.
  • The surge in investor interest surrounding BSC DEXs is not a phase and is likely to persist, experts told Decrypt.
  • Binance Chain validators have proposed a tenfold reduction in gas fees in a bid to improve the DEX trader experience.

The battle of the DEXs is hotting up, as BNB Chain-based decentralized exchange Aster has helped its parent chain to surpass Hyperliquid’s 24-hour perpetual trading volume.

BNB Chain’s 24-hour perpetual volume stands at $21.6 billion, overtaking Hyperliquid’s $10.7 billion, according to data from Dune Analytics. EdgeX and Light followed closely with $8.2 billion and $6.2 billion, respectively.

In terms of overall trading volume, the two exchanges are jockeying for position. Per CoinGecko data, Hyperliquid’s $609 million in 24-hour volume puts it at seventh place among the DEXs, while Aster sits at eighth place with $583 million in 24-hour volume.

Aster’s native token has shot up by 41.4% in the past 24 hours, taking it to a market cap of $3.9 billion and making it the 47th largest cryptocurrency by market cap, per CoinGecko data.

Hyperliquid’s HYPE is currently down 6.2% on the day, though with a market cap of $12.1 billion, it sits considerably higher in the rankings as the 20th biggest cryptocurrency.

On prediction market Myriad, launched by Decrypt’s parent company DASTAN, users paint a mixed picture of Aster’s prospects. Predictors put an 87% chance on Aster being ranked among the top 40 coins on CoinMarketCap this month, but over 60% of predictions expect it to remain below $4 through November.

A passing phase?

Interest in Aster was piqued by Binance co-founder Changpeng Zhao’s vocal support of the DEX in a tweet earlier this week, in which he praised its “good start.”

“The recent surge in BSC perpetual volumes and DEX activity is not merely a passing phase,” Cecilia Hsueh, Chief Strategy Officer at crypto exchange MEXC, told Decrypt.

Technical upgrades, incentive programs, and integration with the Binance ecosystem are some of the key aspects that give this meta durability, Hseuh added.



The sudden uptick in interest in BSC-based decentralized exchanges, specifically Aster and other BSC-based platforms, led to a triple-digit rally for several altcoins in just two days, Decrypt previously reported.

All eyes are now on the latest proposal from BNB Chain validators, who are looking to slash transaction fees from 0.1 gwei to 0.05 gwei, with the intention of accelerating block intervals from 750 ms to 450 ms, as announced in Tuesday’s tweet.

Gas fees matter.

They decide where traders build, where liquidity flows, and where innovation happens.

That’s why validators on BNB Chain are proposing to halve fees and accelerate block speeds, keeping BNB Smart Chain (BSC) competitive with the fastest chains in crypto.

BNB… pic.twitter.com/sCdHutFfrJ

— BNB Chain (@BNBCHAIN) September 23, 2025

The proposal for a tenfold reduction in gas fees strengthens BSC’s competitive positioning, Hseuh noted.

While BNB Chain is actively attempting to siphon interest into DEX and away from Hyperliquid, it still has a long way to go, as the latter is still a market giant when looking at longer-term data points.

Hyperliquid’s $326.77 billion 30-day perpetual volume is uncontested and more than five times that of Binance’s $60.12 billion market share. And just a few weeks ago, legacy and crypto giants including VanEck, StateStreet, Sky, Ethena, Agora, and others were competing to submit Hyperliquid’s USDH stablecoin proposal.

Still, Hesuh believes that Hyperliquid’s leadership is “no longer uncontested.” While the interest in decentralized exchanges helps Hyperliquid, it must now “fight harder to preserve its edge.”

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Hyperliquid proves onchain perps can thrive with
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Hyperliquid proves onchain perps can thrive with

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OKX CEO Star Xu has praised Hyperliquid’s success in the on-chain perpetuals space and noted that the platform achieved massive success with very few employees.

Summary

  • OKX CEO highlights Hyperliquid’s success and regulatory barriers to mainnet launch.
  • CFTC enforcement actions on DeFi keep exchanges cautious on perpetuals rollout.
  • Arthur Hayes predicts HYPE may hit $5,000 by 2028.

OKX CEO points to regulatory enforcement as market barrier

Xu’s comments come as HYPE (HYPE) token reached a new all-time high of $59.30 on September 18, jumping over 30% in the last 30 days.

Xu revealed that OKX Web3 has been testing a similar product since 2023 but chose not to launch on mainnet due to regulatory concerns.

He pointed to the CFTC’s 2023 enforcement action against Deridex as a key factor.

The OKX CEO shared CFTC enforcement data showing charges against Opyn, ZeroEx, and Deridex for failing to register as swap execution facilities, designated contract markets, or futures commission merchants.

The companies were also charged with illegally offering leveraged and margined retail commodity transactions in digital assets without proper registration.

Hyperliquid proved that massive success in onchain perps can be achieved with very few employees. Now, more competitors like $Aster are stepping into the space. OKX Web3 has been testing a similar product since 2023, but we chose not to launch mainnet due to regulatory concerns.…

— Star (@star_okx) September 21, 2025

Xu expressed hope that the industry will soon gain much-needed regulatory clarity which will allow platforms like OKX to safely enter the on-chain perpetuals market.

Meanwhile, he noted that more competitors like Aster are stepping into the space following Hyperliquid’s success.

The CFTC’s enforcement actions against DeFi platforms have created a cautious atmosphere.

The charges centered on failures to comply with traditional financial regulations adapted for digital assets. This includes lack of proper customer identification programs needed under Bank Secrecy Act compliance.

Arthur Hayes predicts $5,000 HYPE target by 2028

BitMEX co-founder and Maelstrom CIO Arthur Hayes has made one of his most aggressive cryptocurrency predictions. He suggested that HYPE could reach $5,000 by 2028.

Hayes shared his bullish thesis during multiple September 2025 appearances, including the WebX 2025 conference in Tokyo and a podcast interview with Kyle Chasse.

His prediction builds on earlier remarks where he suggested HYPE could see a 126-fold gain within three years. Hayes’ $5,000 target would be an 84x to 86x increase from current levels.





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Avalanche and Hyperliquid Lead Crypto Rally Post-Fed Rate Cut

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In brief

  • Crypto markets have posted broad gains following the Federal Reserve’s quarter-point rate cut.
  • Hyperliquid’s USDH stablecoin has been “attracting liquidity across the board from many institutions,” according to an analyst.
  • The momentum now hinges on project-specific catalysts, with altcoins more exposed to volatility than Bitcoin, experts told Decrypt.

Avalanche (AVAX) and Hyperliquid (HYPE) led the altcoin rally on Thursday as digital assets responded positively to the Federal Reserve’s latest rate cut and project-specific developments.

AVAX rocketed 10.1% to $32.59, while HYPE jumped 7.2% to $58.43 in the past 24 hours, according to CoinGecko data. 

Other major altcoins followed suit, with Dogecoin (DOGE) advancing 5.4% to $0.27, Solana (SOL) climbing 4.5% to $244 and Cardano (ADA) rising 4.3% to $0.90. (ADA) rising 4.3% to $0.90.



Bitcoin (BTC) maintained its position above $117,000 with a modest 0.3% gain, while Ethereum (ETH) posted a 2.1% increase to $4,588.

The rally follows the Fed’s widely anticipated quarter-point rate cut, which lowered the federal funds rate to a range of between 4.25% to 4.50%. 

Bitcoin and other major digital assets largely traded flat in the immediate aftermath, as investors had already priced in the highly anticipated Fed call.

“While the Fed’s rate cut buoyed broader risk sentiment, AVAX’s outperformance seems driven by Avalanche’s announcement of a $1 billion Digital Asset Treasury plan,” Min Jung, senior analyst at quantitative trading firm Presto, told Decrypt.

The Avalanche Foundation is in advanced talks to raise $1 billion via a Nasdaq-listed firm backed by Hivemind and a Dragonfly-sponsored SPAC, with proceeds earmarked for discounted AVAX buybacks, according to the Financial Times.

Bitwise also filed paperwork on Monday for an AVAX ETF, utilizing Coinbase to custody the digital assets, which adds to the token’s institutional adoption prospects.

Jung noted the rally could “sustain in the near term as the biggest macro risk event—the FOMC—has now been cleared,” though with the cut “largely digested,” moves will depend on “headlines and project-specific catalysts.”

Ganesh Mahidhar, Investment Professional at Further Ventures, told Decrypt that in the case of Hyperliquid, its stablecoin “USDH is attracting liquidity across the board from many institutions,” with perp trading built so that “custody is not with the exchange but the UX is just as smooth as a centralized exchange,” he said.

“In terms of macro, the rate cut news definitely has had an impact,” he added, though it may be “short-lived” since cuts had been “priced into the markets for many months now.”

Nic Puckrin, founder of The Coin Bureau, told Decrypt that “it’s the signal, not the size, that counts,” noting the 25bp cut shows the Fed is finally easing after months of inflation and weak labor data. 

“Hope is high and there’s a big chance of a ‘sell the news’ pullback,” he added, with meme coins most vulnerable to “pump fast and collapse fast” volatility.

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Flr Token Goes Live On Hyperliquid With Layerzero Oft
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FLR Token Goes Live on Hyperliquid with LayerZero OFT

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Flare’s native token FLR has officially gone live for spot trading on Hyperliquid today, and this was made possible through LayerZero’s Omnichain Fungible Token standard. Users can deposit FLR via Stargate and begin trading it directly on Hyperliquid without any extra steps.

What makes the listing stand out is that Hyperliquid is supporting native FLR rather than a wrapped version, which removes the need for gas to unwrap tokens. This makes the whole process of deposits and withdrawals much easier for users who want a seamless trading experience.

Trading Made Simple with Native FLR

The FLR ticker was obtained directly by Flare so the listing could happen without needing approval from a centralized party. LayerZero’s OFT standard acts as the bridge that links FLR from the Flare network to Hyperliquid’s HyperEVM, and then into HyperCore where trading happens. Once there, FLR is set up as a HIP-1 asset and can be traded against USDC. 

This structure is designed to keep bridging fast and simple while giving users a seamless experience between networks. On Hyperliquid itself, trading is powered by an on-chain orderbook, offering tight spreads and liquidity for better execution and lower overall costs.

“Hyperliquid trading volumes have soared over the recent months, rendering it a high-priority exchange listing with compelling prospects for the FLR token,” Hugo Philion, CEO and Co-founder of Flare said in the press release. “Harnessing LayerZero’s native OFT standard and Hyperliquid’s decentralized listing flow, users can now access a permissionless bridge-in, trade, bridge-out experience for FLR.” 

Different Ways to Fund and Trade 

Users now have three simple options to fund their Hyperliquid accounts:

First Option: USDT0 from Flare:

Bridge USDT0 from Flare to HyperCore through Stargate or usdt0.to. Once bridged, swap USDT0 for USDC to begin trading. A $1 fee is required to activate a Hyperliquid account.

Second Option: FLR from Flare:

 Bridge FLR directly from Flare to HyperCore and HyperEVM through Stargate. After trading, bridge FLR back to Flare to use for staking, delegation, or receiving FlareDrops.

Third Option: USDC from Arbitrum:

Deposit USDC directly from Arbitrum into the Hyperliquid app. This gives a straightforward way to fund trading without using bridging steps.

At launch, FLR trades against USDC, and Hyperliquid plans to expand trading into more stablecoins like USDT0 and USDH as the system grows.

According to Filip Koprivec, Chief Product Officer at Flare “The OFT standard is turning FLR into a first-class omnichain asset. Combine that with Hyperliquid’s on-chain market structure and you get speed, transparency, and strong price discovery for everyday traders.”

Also Read: Hex Trust Adds Custody support for stETH for Institutions



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XRP, BNB, and Hyperliquid Lead Crypto Gains Ahead of Crucial Fed Decision

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In brief

  • Layer 1 tokens take the lead as investors prepare for the highly anticipated FOMC meeting.
  • Analyst attributes XRP, BNB, and Hyperliquid’s out-of-pocket performance to coin-specific development.
  • With altcoin open interest briefly surging above Bitcoin’s, investor appetite continues to remain elevated.

With the Fed’s crucial interest rate decision in less than 12 hours, a select few altcoins have taken the lead, outperforming others. 

BNB takes the lead with a 2.5% return in 24 hours, closely followed by Sui, Hyperliquid, and XRP with 2.2%, 1% and 0.7% growth, respectively.

Altcoins are riding on the coattails of coin-specific developments and not due to the U.S. Federal Reserve’s rate cut decision scheduled on Wednesday at 2 pm ET, Lai Yuen, investment analyst at Fischer8 Capital, told Decrypt. 



Hyperliquid and BNB are benefitting from “chatter around digital asset treasury buying flows, underpinned by solid businesses and clear value-accrual models,” Yuen explained. 

The excitement surrounding XRP is fuelled by the newly approved spot ETF, which could launch as early as this week, he added. 

Still, Layer 1s have continued to outperform other sectors like meme coins, Layer 2s, or gaming over the past seven and 30 days, data from Velo shows. 

With the S&P 500 index and gold up 0.25% and 0.60% on the day and just below their respective record highs, Yuen noted that equities and gold were seeing a strong bid heading into the FOMC, while “crypto continues to lag with majors capped by lower highs.”

Despite the short-term bearish market structure, institutions continue to accumulate. 

Last week’s $2.34 billion inflow into U.S. Bitcoin exchange-traded funds pushed global exchange-traded product holdings to new highs, according to a previous Decrypt report.

Meanwhile, crypto prime broker FalconX has withdrawn 413,075 SOL from Binance, Coinbase, ByBit, and OKX on Tuesday, data intelligence platform Arkham shows.

That could be a sign of accumulation from larger players as they seek to reduce their stockpiles on exchanges to sell quickly.

Speculation surrounding altcoins has climbed to new highs as noted by the recent surge in altcoin open interest that briefly overtook Bitcoin’s on September 13, per Coinanalyze data.

The uptick in leverage highlights the investors’ “eagerness for alt season,” ahead of the fourth quarter’s historically bullish performance, Stephen Gregory, founder of crypto trading platform Vtrader, previously told Decrypt.

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Crypto Trends

Native Markets Secures USDH Ticker Following Hyperliquid Governance Vote

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In brief

  • The startup beat out Paxos, Ethena, and others, with validators and prediction markets pushing odds to above 90% before the vote.
  • Native Markets’ proposal splits reserve yield between Hyperliquid’s Assistance Fund and growth, with reserves managed via Bridge, BlackRock, and Superstate.
  • The next test for USDH would be whether it could break the dominance of USDC and USDT, Decrypt was told.

Native Markets was awarded the USDH stablecoin ticker on Sunday, following a governance vote among Hyperliquid validators.

The newly formed firm edged out established bidders after prediction markets and validator commitments swung heavily in its favor, capping one of the most closely watched governance decisions in crypto this year.

Ethena, once considered a strong challenger, withdrew from the race on Thursday. The firm cited feedback from validators and community members questioning whether its proposal, anchored in its existing non-native infrastructure, met the spirit of the competition.



Its exit further pushed prediction odds on Myriad for Native Markets above 90% and effectively cleared the path, with Paxos left trailing despite revising its proposal midweek.

Disclosure: Myriad Markets is owned by Decrypt’s parent company Dastan.

Despite the broad concurrence, the voting process drew criticism.

Observers argued the compressed request-for-proposals timeline, combined with validator ties to existing Hyperliquid infrastructure, tilted the playing field in favor of Native Markets.

Max Fiege, founder of Native Markets, outlined a phased rollout in a statement on Sunday.

The first step will be the introduction of a Hyperliquid Improvement Proposal, after which mints and redeems of USDH will begin in a controlled trial.

Early participants will be capped at about $800 per transaction to stress-test the system. Once initial checks are complete, the USDH/USDC spot order book will open on Hyperliquid, followed by full minting and redemption functionality for all users.

With Native Market securing the USDH ticker, the closely watched governance vote “cements Hyperliquid as a fast-growing ecosystem” but also shows the “intensifying stablecoin competition,” Vincent Liu, chief investment officer at Kronos Research, told Decrypt.

Governance-led moves and fresh liquidity being poured into Hyperliquid show that “stablecoins remain central to crypto’s next phase of global adoption,” Liu added.

Native Markets had been the frontrunner throughout the contest. Its proposal emphasized a native alignment with Hyperliquid: cash reserves and U.S. Treasuries managed by BlackRock off-chain.

Tokenized reserves, meanwhile, will be handled on-chain by Superstate through Bridge, Stripe’s stablecoin infrastructure provider.

The team also pledged to split all reserve yield equally between Hyperliquid’s Assistance Fund and ecosystem growth.

Backers include operators and investors with track records at Uniswap Labs, Paradigm, and Polychain. These elements, combined with early validator endorsements from groups such as CMI Trading, gave Native Markets a decisive advantage.

Still, USDH’s biggest test will be “breaking through the dominance of USDC and USDT, where adoption and liquidity remain king,” Liu noted.

“Transparency around reserves and strong, unified governance will be vital to win lasting trust,” with its future prospects highly dependent “on proving it can compete while maintaining stability,” he added.

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Kinetiq Deposits (DeFiLlama)
Crypto Trends

Yield Hunters Flock to HyperLiquid Staking Ecosytem to Farm Kintetiq’s Airdrop

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Kinetiq, a liquid staking protocol built around Hyperliquid’s HYPE token, has seen an explosion of inflows in recent weeks as users pile in to farm the protocol’s airdrop points campaign.

Total value locked (TVL) on Kinetiq has jumped from roughly $458 million in mid-July to over $2.1 billion today, according to DefiLlama.

While part of the increase can be attributed to a 20% rise in the price of HYPE over the same period, another big driver has been raw deposits. The amount of HYPE staked has climbed from under 10 million tokens in July to nearly 40 million now. Kinetiq’s points program opened mid-July, underscoring that it is driving activity in its ecosystem.

Kinetiq Deposits (DeFiLlama)

The surge demonstrates the growing influence of Hyperliquid, which is fast becoming a DeFi heavyweight as liquidity, trading activity and staking demand migrate onto its ecosystem.

Points programs in particular, where protocols distribute future token allocations to early participants, continue to pull in yield-hungry crypto investors. By staking HYPE through Kinetiq, users not only earn standard staking rewards but also accumulate points toward a potential Kinetiq token airdrop.

For many DeFi traders, that double yield opportunity has proven irresistible, some have shared on X.

Read more: Native Markets Leads Early Voting for Hyperliquid’s USDH Stablecoin Contract



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Ethena-Hyperliquid
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Ethena Drops USDH Hyperliquid Bid to Focus on Product Innovation

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Ethena Labs has abruptly pulled its bid to launch the USDH stablecoin, responding to mounting backlash and concerns about its wider goals. This decision comes just days before an important vote, giving validators a chance to rethink their choices and support other projects instead.

In his X post, founder Guy Young acknowledged community criticism and congratulated Native Markets on gaining validator support.

“Ethena is not a Hyperliquid native team, we have other product lines outside of USDH, and our ambitions extend beyond working with just one partner exchange,” Young said. He emphasized that concerns were valid and that Ethena respected the pushback.

The last few days have been incredible to witness. I’ve never seen a community rally around and engage with passion like this before.

Following direct discussions with individuals in the community and validators we have taken onboard some of the concerns, namely:

-Ethena is not…

— G | Ethena (@gdog97_) September 11, 2025

Focus Shifts to Product Innovation

Despite all this, Ethena is determined to ramp up its product development. The Founder Guy Young said that the team will be zeroing in on new offerings.  Some of them are hUSDe synthetic dollars, USDe-powered savings tools, and cutting-edge HIP-3 market designs.

These include reward-bearing trading collateral, modular prime broking, and perpetual swaps on equities. Young highlighted that their excitement lies in building solutions that expand crypto’s utility.

Moreover, Arthur Hayes, co-founder of Maelstrom’s crypto investment fund, has been increasing his stake in Ethena. According to Arkham data, Hayes purchased nearly $1 million worth of ENA tokens within 48 hours. 

This included 578,956 ENA tokens valued at $473,000 on September 11 and an earlier tranche worth $521,000. His buying spree comes ahead of Sunday’s critical vote on the USDH proposal.

As of writing, Ethena is trading at $0.767120, which shows a 2.86% decrease in the last 24 hours. The trading volume is still robust at $704.54 million, according to CoinMarketCap. 


Ethena’s withdrawal reshapes Hyperliquid’s stablecoin while Arthur Hayes’ bold ENA purchases show continued belief in Ethena’s long-term vision.

Also Read: BIT Mining Boosts Solana Holdings Ahead of Potential Year-End Rally





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Arthur Hayes Buys Nearly $1M in Ethena Ahead of Hyperliquid Vote

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In brief

  • Hayes has accumulated about $995,000 worth of ENA in the past two days, according to Arkham Intelligence.
  • Ethena, backed by BlackRock, has pledged to route 95% of USDH revenue to Hyperliquid and cover migration costs.
  • Native Markets leads the race with 90% odds, while Paxos revised its proposal and secured a Kraken listing offer.

Arthur Hayes, co-founder of crypto investment fund Maelstrom, bought the Ethena token this week, tying his latest move to a project vying for control of the USDH stablecoin ticker as Hyperliquid validators head into a decisive vote on Sunday.

Hayes has accumulated multiple tranches of Ethena’s ENA token over the past two days, including 578,956 tokens worth about $473,000 on Wednesday and two earlier purchases totaling roughly 672,800 ENA, or $521,000, according to data tracked by Arkham Intelligence.

The total, including those from Monday, amounts to roughly $995,000 worth of Ethena tokens within a 48-hour window.

Hayes’ purchases come as Ethena remains a contender in the USDH stablecoin race, with Hyperliquid validators set to decide the ticker on Sunday.

Ethena’s proposal, backed by BlackRock, would use its USDtb stablecoin to collateralize USDH via BlackRock’s BUIDL fund, with 95% of revenue pledged to Hyperliquid and costs covered for shifting trading pairs from USDC.

Ethena’s proposal is a “strong bid from one of crypto’s fastest-growing and most impressive ecosystems,” David Lawant, head of research at FalconX, wrote in a blog post published Wednesday.

  

Lawant pointed to USDe’s market cap of more than $13 billion and Ethena having processed $23 billion in cumulative mints and redemptions without security incidents or downtime.

Still, Hayes’ buy “reads as personal positioning, rather than putting a backing behind Ethena specifically for the USDH votes,” Kirby Ong, founder of HypurrCollective, a grassroots collective for founders, builders, traders, and power users on the Hyperliquid ecosystem, told Decrypt.

“With the $USDH proposal, the deciding factors will likely come down to validator alignments with their current stakers, whether prediction market sentiment translates into actual on-chain votes,” Ong said.

Other contenders

Paxos, backed by PayPal, is also a top contender, according to Lawant. It revised its proposal on Wednesday, expanding from an emphasis on regulatory pedigree to pledging a larger share of reserve yield to Hyperliquid’s Assistance Fund and deferring any issuer take until the product scales past $1 billion.

On Wednesday evening, Paxos announced it had received an offer from Kraken to list USDH and HYPE from day one, with free USD on- and off-ramps, pending the exchange’s standard review.

Meanwhile, Native Markets remains front and center.

Despite being a newly formed company, Native Markets remains the top contender, with 90% odds in its favor, according to live data on Myriad Markets.




Disclosure: Myriad is a prediction market developed by Decrypt’s parent company DASTAN.

Native Markets pitched a GENIUS-compliant USDH managed through Bridge, Stripe’s stablecoin issuer, with reserves in cash and Treasuries overseen by BlackRock off-chain and Superstate on-chain. 

Its plan splits yield evenly between Hyperliquid’s Assistance Fund and ecosystem growth, and promises a HyperEVM launch with seamless interoperability.

Ong explained that while prediction markets “help set expectations,” validator support “determines the valid candidates,” and that “ultimately, anyone can help to decide and set the direction for USDH by staking their weight and making their votes known by delegating to the validator that best matches their vote.”

Ong added: “The final outcome on Sunday may depend on which team gains the most trust and perceived long-term value for the ecosystem.”

Decrypt has reached out to Hayes, Paxos, and Ethena for comment. A separate request was sent to Native Markets through an ecosystem operator (Max Feige).

Other contenders include Sky, the issuer of USDS (formerly MakerDAO’s DAI), Frax Finance with a bank-partnered bid, and Agora, which has warned against Native Markets’ reliance on Stripe-owned Bridge while pledging to channel all net revenue back into Hyperliquid.

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BlackRock Exec Pitches Hyperliquid on Ethena’s Stablecoin Proposal

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In brief

  • Ethena presented a proposal for Hyperliquid’s stablecoin.
  • USDH would be indirectly backed by BlackRock’s tokenized BUIDL fund.
  • Ethena would divert USDH revenue back into Hyperliquid’s ecosystem.

Ethena Labs, makers of the synthetic-dollar protocol, cast its name into the USDH ring on Tuesday, presenting itself as a potential suitor for issuing Hyperliquid’s stablecoin.

The decentralized exchange and layer-1 network is currently being powered by Circle’s USDC and Tether’s USDT0, but Hyperliquid’s community is currently soliciting proposals on a “Hyperliquid-alinged” stablecoin that could serve as an alternative.

Proposals have already been penned by entities including stablecoin issuer Paxos and World Liberty Financial, the decentralized finance project backed by U.S. President Donald Trump, but Ethena’s proposal emphasizes that its support would also come with that of its partners.



Ethena flexed partnerships with Anchorage Digital, a federally chartered digital assets bank, and Securitize, the BlackRock-backed, real-world asset tokenization firm. Anchorage issues Ethena’s USDtb stablecoin, which is backed by BlackRock’s tokenized BUIDL fund.

“We are excited to enable Ethena’s USDtb, which is 100% backed by BUIDL and uniquely positioned to offer institutional grade cash management as well as on-chain liquidity to Hyperliquid users,” BlackRock Head of Digital Assets Robert Mitchnick said in the proposal.

Introduced in the first quarter of 2023, Hyperliquid was viewed as a scrappy DeFi Startup not too long ago. But now projects like Ethena are clamoring for its feedback, underscoring how that perception is changing. Hyperliquid has $5.7 billion in stablecoins on its network, for example, according to crypto data provider DefiLlama.

Under Ethena’s proposal, USDH would be initially backed by USDtb, and therefore have indirect backing from the $14 trillion asset manager’s BUIDL fund. With at least 95% of the revenue generated by USDH’s reserves, distributions would be made to Hyperliquid’s so-called Assistance Fund, alongside HYPE purchases and distributions to validators.

HYPE changed hands around $53 on Tuesday, a 20% increase over the past day, according to crypto data provider CoinGecko. The token serves as Hyperliquid’s governance token, letting holders participate in the process of voting on software upgrades and other initiatives.

If Ethena receives a green light, the project would cover transaction costs associated with making USDH the go-to stablecoin within Hyperliquid’s exchange, its proposal adds.

Among other notable benefits, the proposal states that Anchorage would issue Ethena’s USDtb stablecoin natively on Hyperliquid’s network. On top of that, Securitize would deploy its platform on the layer-1, bringing “institutional grade tokenized funds, stocks, and other financial products to the Hyperliquid ecosystem for no deployment cost.”

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