HYPE, the native token of cryptocurrency derivatives exchange Hyperliquid, surged 24% in the past 24 hours as traders increased bets on silver, gold and other commodities.
Silver futures in particular have exploded in popularity on the platform. Silver was trading around $111 in early U.S. trading on Monday, with 24-hour trading volume exceeding $1.25 billion, making it the third most active market on Hyperliquid, behind Bitcoin and Ethereum. Open interest in silver contracts also increased significantly, rising to more than $155 million.
The sudden surge in activity is important to HYPE holders.
Since October, Hyperliquid has allowed users to create their own perpetual futures market by locking HYPE tokens. Trading fees generated by these markets are split 50/50 between the exchange and the market creator.
More transactions means more revenue – by Hyperliquid’s design, most of the revenue is used to buy back HYPE tokens on the open market through its bailout fund. Therefore, as open interest increases, more funds are directed to purchase HYPE, creating a feedback loop that can increase the price of the token.
Traders took this as a bullish sign not only for HYPE, but also for Hyperliquid itself. The surge in interest in commodities suggests that crypto derivatives platforms are growing beyond their usual focus on cryptoassets such as Bitcoin, which has struggled to find its direction in recent weeks. This diversification could make Hyperliquid relevant in the long term.
Hyperliquid CEO and co-founder Jeff Yan said in an article on
