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Hyperliquid’s HYPE Slumps as Attention and Capital Rotate to New DEX Tokens

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In brief

  • Hyperliquid’s HYPE token is down double digits over the weekend and another 7.4% today.
  • Whales selling ahead of HYPE’s token unlock and profit-taking are key reasons for the recent drop, experts suggest.
  • As competition heats up among decentralized exchanges, DEX tokens such as Aster, STBL, and Avantis have surged over the weekend.

Hyperliquid’s HYPE token is on its fourth consecutive day of a downtrend, while recently launched decentralized exchange tokens have more than doubled over the weekend.

“There’s definitely been an attention shift over the past few days,” Illia Otychenko, lead analyst at CEX.IO told Decrypt, as decentralized exchange tokens including Aster and Avantis, and STBL surged by as much as 124%, 125% and 147% respectively over the weekend, per TradingView data.

Hyperliquid, on the other hand, has shed over 13% from its weekend peak and extended its losses to 7.4% today, at one point dropping to $47.83, per CoinGecko.

On prediction market Myriad, launched by Decrypt’s parent company DASTAN, users flipped bearish on HYPE over the weekend. On Sunday, predictors peaked at a 62% chance of HYPE’s next move carrying it to $69, but by Monday morning those figures had almost reversed, with users placing a 58% chance on HYPE crashing to $39.



Why is HYPE dropping?

The drop in Hyperliquid’s price is due to investors booking profit, Peter Chung, head of research at Presto Research, told Decrypt.

Otychenko echoed Chung’s outlook by stating that there’s “a bit of capital rotation” as whales sell their Hyperliquid tokens.

Among them are Arthur Hayes, founder of crypto exchange BitMEX, who sold 96,600 HYPE on Sunday, worth some $5.1 million.

In addition, roughly 237.8 million HYPE are set to unlock linearly starting November 29, Hayes’ family fund Maelstorm highlighted in a Monday tweet. At the current price of $49, per CoinGecko data, the notional value of the unlock will be roughly $11 billion.

The buybacks from Hyperliquid and the buying pressure from Digital Asset Treasury companies are “a drop in the bucket compared against impending HYPE unlocks,” the Maelstrom article added, citing a potential supply overhang of $410 million per month.

With heightened competition from new decentralized exchanges now palpable, the main question, according to Otychenko, is whether the newly surging tokens can keep the market’s attention once their initial hype cools down.

“Right now, risks are high,” he added. “Aster in particular has over 90% of supply concentrated in just a few wallets, making it prone to sharp swings or manipulation.”

Aster, a Binance Smart Chain-based DEX, recently received an endorsement from Binance co-founder CZ, who tweeted “Good start. Keep building,” at the project last Wednesday.

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(https://www.usdhtracker.xyz/)
NFT Gaming

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

by admin



Good Morning, Asia. Here’s what’s making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas.

The first signs of how validators are leaning in Hyperliquid’s hotly contested stablecoin vote are in, and the Stripe-aligned Native Markets team has an early lead.

(https://www.usdhtracker.xyz/)

As of Thursday morning Hong Kong time, Native Markets has secured 30.8% of the delegated stake, led by heavyweight validators infinitefield.xyz (13.5%) and Alphaticks (5.2%).

Paxos Labs, the New York–regulated issuer behind PayPal’s PYUSD, sits at 7.6% with backing from B-Harvest and HyBridge. Ethena has picked up 4.5%, while Agora, Frax, and Sky, despite splashy proposals, have yet to attract meaningful support, though many of the most prominent validators have yet to cast their virtual vote.

The bigger picture: more than half of stake, 57%, remains unassigned.

That block includes some of the most influential validators on Hyperliquid, such as Nansen x HypurrCollective (the single largest validator with over 18%) and Galaxy Digital. Where they ultimately land will decide whether Native Markets’ early momentum carries through to the September 14 deadline.

Native Markets is pitching a Hyperliquid-native stablecoin issued via Stripe’s Bridge infrastructure, promising yield-sharing to the Assistance Fund and HYPE buybacks.

But prominent voices, including Agora CEO Nick van Eck, warn that Stripe’s simultaneous push to launch its Tempo blockchain and its control of wallet provider Privy could create conflicts.

Despite those criticisms, some validators appear to view Stripe’s global payment rails as a compelling advantage.

What’s at stake is far more than just another token launch. Hyperliquid currently holds $5.5 billion in USDC deposits, around 7.5% of the stablecoin’s supply.

Replacing that with USDH would redirect hundreds of millions in annual Treasury yield. Paxos has pledged 95% of reserve earnings to HYPE buybacks, Frax promised 100% of yield directly to users, Agora offered 100% of net yield alongside institutional custodianship, and Sky (ex-MakerDAO) proposed 4.85% returns plus a $25 million “Hyperliquid Star” project to bootstrap DeFi on the chain.

Hyperliquid already commands nearly 80% of decentralized perpetuals trading. Whichever issuer wins the USDH contract won’t just be minting a stablecoin, they’ll be wiring themselves into the financial backbone of one of crypto’s fastest-growing exchanges.

Market Movement:

BTC: Currently trading at $114,053, up 2.6% in the past 24 hours and 2.1% over the past week, though still down 3.9% for the month. The move reflects a short-term rebound fueled by positive risk sentiment and steady demand, even as longer-term consolidation continues.

ETH: ETH is trading at $4,373.99, up 2%, as investors shrug off a mass-slashing event that penalized over 30 validators.

Gold: Gold held near $3,635 an ounce after Tuesday’s $3,674 peak as investors await U.S. inflation data that could shape Fed cuts, while ANZ raised its year-end gold target to $3,800 and sees a peak near $4,000 by June on strong investment demand and central-bank buying.

Nikkei 225: Asia-Pacific markets opened mixed Thursday, with Japan’s Nikkei 225 up 0.23% and the Topix down 0.18%, after Wall Street hit record highs on Fed rate-cut hopes and upbeat inflation data.

S&P 500: The S&P 500 rose 0.3% to a record 6,532.04 Wednesday after an unexpected drop in wholesale prices bolstered hopes for a Fed rate cut next week.

Elsewhere in Crypto:

  • Trump’s CFTC Hopeful Quintenz Takes His Dispute With Tyler Winklevoss (Very) Public (CoinDesk)
  • Polygon rolls out hard fork to address finality bug causing transaction delays (The Block)
  • Activist investor Elliott Management says crypto is facing an ’inevitable collapse’ after its ‘perceived proximity to the White House’ inflated a bubble (Fortune)



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VersaBank Kicks Off Tokenized Dollar Deposit Pilot Using Algorand, Ethereum and Stellar
Crypto Trends

Joins Race to Issue Hyperliquid’s USDH Stablecoin With BlackRock-Backed Token

by admin



Decentralized finance protocol Ethena ENA$0.6692 submitted Tuesday a proposal to issue Hyperliquid’s upcoming stablecoin, joining a bidding race that has already attracted a slew of companies like Paxos, Sky, Frax and Agora.

The token would be fully backed by Ethena’s USDtb, a stablecoin issued with federally chartered bank Anchorage Digital and fully backed by BUIDL, the tokenized money market fund by asset management giant BlackRock and Securitize.

“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,” said Robert Mitchnick, Blackrock’s head of digital assets, in the proposal.

If adopted, Ethena pledged that 95% of net revenue from USDH reserves would flow back to the Hyperliquid ecosystem, the proposal said. Ethena also said it would cover the costs of migrating existing USDC trading pairs on Hyperliquid to USDH to ease adoption.

The proposal comes as competition to win the issuance of Hyperliquid’s USDH stablecoin is intensifies. The decentralized exchange executed almost $400 billion in perpetuals trading volume last month, making it an attractive market for stablecoin providers to corner. Sky (formerly MakerDAO), Paxos, Sky, Frax, Agora and Native Markets threw their hat in the ring. Validators are set to vote on proposals on September 14.

Read more: Sky Pitches Genius-Compliant USDH Stablecoin With $8B Balance Sheet and 4.85% Yield



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Sky (Makerdao) Joins Hyperliquid’s Usdh Stablecoin Issuance Race
Crypto Trends

Sky (MakerDAO) Joins Hyperliquid’s USDH Stablecoin Issuance Race

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The crypto industry is buzzing with Hyperliquid’s planned USDH stablecoin issuance, which has led to a bidding war between various protocols. While Paxos, Frax, Agora, and Native Markets were already pushing to power USDH, Sky had now also joined the race on Monday with a plan that made use of its $8 billion balance sheet.

Previously known as MakerDAO, Sky is already managing USDS and DAI stablecoins, worth around $13 billion, making it the fourth and fifth largest stablecoin issuers.

In a post on X, Rune Christensen, one of the founders of Sky, said, “By using Sky to power USDH, the Hyperliquid community will gain unbeatable advantages that no other stablecoin project can offer.”

USDH powered by Sky

The best stablecoin offers so much more than just a stable medium of exchange – it should also deliver highly efficient returns, generated by actively developing, building and growing the ecosystem it lives in.

By using Sky to power USDH, the Hyperliquid…

— Rune (@RuneKek) September 8, 2025

Christensen also proposed notable terms, including 4.85% returns on all USDH held in Hyperliquid. This rate is higher than the current yields on Treasury bills. The money will go toward buying back HYPE tokens and the platform’s Assistance Fund.

Sky’s plan includes $2.2 billion in instant redemption liquidity through the protocol’s Peg Stability Module. This feature lets big traders quickly convert USDH at scale. The firm also says it will invest $25 million in “Hyperliquid Genesis Star” to help get DeFi development going on the platform. The protocol plans to move its buyback engine, which makes more than $250 million a year, to Hyperliquid. 

The Competition is Tough 

As a leading decentralized perpetual exchange, Hyperliquid has over $5.5 billion in USDC deposits, which is about 7.5% of the stablecoin’s total supply. 

Apart from Sky, four other protocols in the race have also pushed forward favorable terms for issuing USDH stablecoin. These are Paxos, Frax, Agora, and Native Markets. Paxos has promised 95% of reserved earnings and zero fees for USDC migration, while Agora has pledged 100% of net revenue for HYPE buybacks. 

Meanwhile, Native Markets, which was the first protocol to send a proposal for USDH, promises a share of the reserve proceeds to Hyperliquid’s Assistance Fund, minting within the ecosystem, and following the rules. Frax Finance is a community-based model that gives users back 100% of the treasury’s profits. This arrangement is different from Sky’s revenue-sharing model.

An on-chain vote on September 14, 2025, will decide the outcome for the Hyperliquid community. The vote is one of the most closely watched developments in DeFi this year because whichever protocol wins the deal will have a huge amount of power in the stablecoin market.

Also Read: Stripe Faces Competition for Hyperliquid’s USDH Stablecoin





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