The decentralized exchange (DEX) and layer-1 blockchain, Hyperliquid, has recorded a significant milestone. On Friday, the platform saw an increase in its open interest (OI), breaking through the $700 million mark, according to recent records on crypto data platform Coinglass.
Open interest (OI) is a metric for measuring the total value of outstanding derivative contracts, including futures and options, that traders and investors hold on a particular platform or market.
Hence, the uptick in OI on Hyperliquid indicates an increase in contracts on the platform, pointing to an increase in the level of trading activity and market participation. Hyperliquid’s recent records typically suggest the platform is a liquid and active market, which can further attract more traders and investors.
A Bullish Outlook for Hyperliquid
Hyperliquid’s recent feat can be attributed to strong market sentiment and traders’ confidence in the token. The platform’s innovative tools, such as Hypurrscan and HyperDash, have also played a crucial role in its success.
Fueled by Hyperliquid’s recent growth, some industry experts have expressed an optimistic outlook on the platform’s native token, HYPE, anticipating potential future growth and success. For instance, Arthur Hayes, the former CEO of the crypto exchange BitMEX, predicted in a recent tweet that the HYPE token could potentially climb to $100.
Hyperliquid Launches its Native Token HYPE
Hyperliquid launched its native token HYPE in November last year through a community airdrop. The airdrop eligibility criteria stipulated that users had to have accumulated rewards over six months before May 2024.
As a reward, qualified participants received an allocation of five tokens for every point earned during the specified period.
The token’s debut made a significant impact, setting multiple records in its wake. For instance, after its launch, HYPE surged over 11%, leading to about $4.2 billion in fully diluted value (FDV) and a market cap of about $1.4 billion.
Some of the users who were rewarded with HYPE tokens during the airdrop also posted stories of their unexpected profits on X.
Despite the platform’s growth trajectory, it has also faced some setbacks along the way. Earlier this year, Hyperliquidity Provider (HLP) lost about $12 million after a whale manipulated the Jelly market. Following the incident, the platform had to delist the Solana-based memecoin JELLYJELLY.
