Hyperliquid (HYPE) outperformed major cryptocurrencies over the past week despite broader market weakness.
The decentralized exchange's token climbed 41% in seven days while bitcoin fell 11% and ether dropped more sharply.
Hyperliquid's permissionless markets drove the rally, hitting $1 billion in open interest and $4.8 billion in 24-hour volume.
What Happened
The platform's HIP-3 upgrade allows users to create perpetual futures markets for any asset by staking 500,000 HYPE tokens.
Markets now span crypto, stocks, and commodities like gold and silver.
Silver futures alone generated over $1.2 billion in daily trading volume.
The exchange captured roughly $15 million in fees from recent market activity, according to platform data.
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Why It Matters
Traders view HYPE as a defensive position during the crypto market's weekend slide.
The token maintained gains while most altcoins declined sharply alongside bitcoin's drop below key support levels.
Some market participants compare HYPE to utility stocks that hold value during equity bear markets, prioritizing stability over speculation.
Hyperliquid's fee structure channels 97% of revenue into token buybacks, creating deflationary pressure as trading activity increases.
The platform now holds 70% market share in decentralized perpetual futures, though competition from Binance-backed alternatives is growing.
Recent data shows institutional players are accumulating HYPE despite broader market weakness.
Flowdesk staked $29 million worth of tokens in late January, indicating confidence in the platform's growth trajectory.
HYPE trades around $31 as of Monday morning, roughly 48% below its September all-time high of $59.
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