Hyperliquid Price Sees Dramatic Highs and Lows Amid USDH Debate
The Hyperliquid token (HYPE) has been on a wild ride, reaching an all-time high of $57 before plummeting amid the USDH stablecoin debate. Still, the token is trading in the green zone, underscoring its potential to sustain this momentum.
At the heart of this bullish sentiment lies a series of factors, including technical triggers and other strong fundamentals. This article analyses Hyperliquid’s current price trend and the USDH debate’s implications.
HYPE Token Hits New ATH, But Plummets
Recently, the Hyperliquid token saw a massive surge, with its price hitting an all-time high after VanEck CEO expressed his confidence in the token’s potential future. Subsequently, HYPE reached $57.2, after a long period of consolidation.
Since the beginning of August, the Hyperliquid token has been showing a downward pull, with its price caught in the negative zone of $40-$48. At the onset of September, defying the historical bearish signals, the HYPE token started showing positive signals, finally hitting its new high on September 12.
However, soon the cryptocurrency started to lose its momentum, plummeting to around $52, but still maintaining the bullish trend. At press time, HYPE is trading at $52.48, down 3.24% in a day. Despite this daily dip, the token is up by 1.6% in a week and a massive 12.4% in a month. In line with the current price dip, the 24-hour trading volume has also declined, reaching $288.9 million, down 7%.
USDH Stablecoin Debate
Before the launch of Hyperliquid’s first stablecoin, USDH, the company opened a contest to decide its issuer. Following a validator vote on Sunday, Native Markets emerged as the winner.
Several key contenders, including Paxos,Frax, Sky, Agora, Curve, OpenEden, and BitGo, vied for the USDH ticker. While Ethena withdrew its bid last week and endorsed newcomer Native Markets, the latter came victorious after the vote.
Notably, Native Markets will soon deploy the Hyperliquid Improvement Proposal (HIP) for USDH, introducing an ERC-20 token on the Ethereum network. Founder Max Fiege noted,
“We will then start with a testing phase for mints and redeems of up to $800 per transaction with an initial group, to be followed by the opening of the USDH/USDC spot order book, as well as uncapped mints and redeems.”
Selection Process Under Fire
As the relatively novel bidder won over established platforms like Paxos and Fray, the crypto community has expressed mixed views. Some industry experts, like Haseeb Qureshi, questioned the fairness of the vote, adding that it had been predetermined. He noted,
“l like the USDH RFP was a bit of a farce…Hearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It’s not even a serious discussion, as though there was a backroom deal already done.”
This controversy surrounding the the Hyperliquid USDH bid has significantly impacted the Hyperliquid price, as the token is now trading at a level not seen in the last four days.
Arthur Hayes Bullish on HYPE
Despite this temporary pullback, industry experts like Arthur Hayes remain optimistic about the token. Speaking at a recent interview with Kyle Chasse, the BitMEX co-founder predicted that the HYPE crypto would potentially hit $5000. Earlier this year, he forecasted that the crypto could see a 126x surge in the next three years.
Hayes stated that leveraging trading platforms like Hyperliquid offer opportunities to make significant gains. By picking up the right assets, one could potentially pay off debts and afford luxury items. His statement read,
“I don’t have enough money to do these things that I want to do. But there’s this leverage trading venue where if I pick the right, you know, piece of coin or I pick the right meme stock in the American, you know, casino stock market, you know, I can get the car, I can pay off my student loan for the worthless degree that I got.”
According to Hayes, the current risk-on environment, where investors flock to high-yielding assets, would boost demand for platforms like Hyperliquid, ultimately benefiting the HYPE token. He added, “This is the system that those in charge have chosen to create—and the population is going along with it. I’m going to own the casino where the plebs are going to gamble.”
