- HYPE surged above $59, coming within cents of its all-time high
- The rally liquidated roughly $36.5 million in short positions
- Coinbase integration and new ETF launches are fueling bullish momentum
Hyperliquid’s HYPE token is suddenly back within striking distance of its all-time high after an explosive rally wiped out millions in bearish positions across the market. HYPE surged to roughly $59.06 on Thursday morning, its highest level of 2026 so far and only a few cents below the previous all-time high of $59.33 set back in September 2025.
The move pushed weekly gains close to 50%, briefly lifted Hyperliquid’s market capitalization above $14 billion, and helped the project climb past WhiteBIT Coin to become the 11th-largest cryptocurrency by market value. In other words, things escalated pretty quickly.
Short Sellers Got Absolutely Steamrolled
The speed of the rally triggered a brutal liquidation wave for traders betting against HYPE. Roughly $36.5 million in short positions were wiped out as the token surged higher, compared to only around $1.4 million in long liquidations during the same period.
That imbalance says a lot about how aggressively parts of the market underestimated Hyperliquid’s momentum. Once the price pushed through key resistance zones, forced buybacks from liquidated shorts likely added even more fuel to the rally.
And honestly, that’s become a recurring theme in crypto lately. Markets keep leaning too bearish during strong momentum phases, only to get caught in violent squeezes once price acceleration kicks in.
Coinbase And USDC Integration Are Changing The Narrative
Part of Hyperliquid’s recent strength appears tied to a broader strategic shift around USDC infrastructure and treasury management. Under a new framework called AQAv2, Hyperliquid aligned Coinbase as its treasury deployer while integrating Circle’s Cross-Chain Transfer Protocol into the system.
The setup is designed to connect platform revenue more directly to user deposits rather than depending entirely on volatile trading activity. Analysts believe that structure could help stabilize token buybacks even during weaker market conditions, which is becoming increasingly attractive to investors searching for more sustainable crypto business models.
Near-term yield-sharing revenue projections are reportedly estimated between $135 million and $160 million, with upside scenarios potentially reaching as high as $300 million to $500 million if balances continue growing. Those numbers are definitely getting traders’ attention.
ETF Momentum Is Adding More Fuel
Another major catalyst arrived through the May 15 launch of spot HYPE ETFs from 21Shares and Bitwise. The ETF rollouts helped strengthen institutional visibility around the token at a time when broader interest in crypto investment products continues rising globally.
Interestingly, the bullish momentum has persisted even while reports surfaced that traditional financial giants like CME and ICE were allegedly lobbying regulators to crack down on Hyperliquid’s operations. Instead of slowing momentum, the controversy almost seemed to make traders more interested.
That kind of reaction tends to happen when markets start viewing a project as disruptive enough to threaten established incumbents. Whether that perception holds long term is another question entirely.
Some Traders Think The Market Is Getting Too Euphoric
Despite the explosive rally, not everyone is convinced the move remains sustainable. Some analysts and commentators have started warning that Hyperliquid may be entering bubble territory as enthusiasm accelerates.
Critics specifically pointed toward growing institutional attention as a possible warning sign rather than purely bullish confirmation. One concern involves rising unstaking queues within Hyperliquid’s native ecosystem, with large amounts of capital reportedly waiting to exit locked positions.
There’s also an upcoming unlock involving roughly 2.54% of the total token supply allocated to the Hyperliquid development team. Token unlocks often create temporary selling pressure, especially after large rallies where early holders may look to secure profits.
Still, for now, the momentum behind HYPE remains extremely difficult to ignore. Between ETF exposure, Coinbase integration, strong revenue narratives, and relentless short squeezes, Hyperliquid has quickly become one of the most aggressively watched projects in crypto again.
