Hyperliquid (HYPE) was one of the outliers during the recent Bitcoin (BTC) rally to new records. The high-leverage DEX is now looking to become more compliant and tap larger, well-established markets.Â
HYPE is becoming a staple of crypto trading, growing its open interest in recent days to rival large centralized exchanges. The recent peak performance for multiple trading pairs drew the attention of regulators.Â
Hyperliquid responded, by detailing its DeFi activity in two letters to the US Commodities Futures Trading Commission (CFTC). The letters were a response for an official request on the side of the CFTC for more clarity about the activities of the on-chain perpetual DEX.
The perpetual futures DEX aims to become compliant and continue to offer DeFi in established, regulated crypto markets.Â
The following post is from Hyperliquid Labs
Hyperliquid Labs is committed to the advancement of defi and its promise in delivering a more open, transparent, and efficient financial system for all. As a contributor to the Hyperliquid blockchain, we believe in defi’s ability not…
— Hyperliquid (@HyperliquidX) May 23, 2025
Following the engagement with the CFTC, Hyperliquid continued to expand its open interest. The exchange recovered its value locked from the April lows, up to $440M once again. Hyperliquid also proved it was relatively resilient to liquidations and aggressive traders.Â
Hyperliquid had to present its conditions for 24/7 trading, by securing sufficient liquidity, collateral management, resilience, and compliance with regulations. The DEX team wanted to prove its platform was robust enough to become a part of mainstream trading tools.
The perpetual futures DEX works with pre-funded collateral, where traders first transact on-chain to secure their collateral, mostly eliminating the risk of banking bottlenecks. However, for some traders, even crypto transactions may be slowed down by unexpected factors.
The DEX offers continuous trading with constant pricing information, and automated liquidation once the position no longer covers its margin requirements. The DEX also has partial liquidations and traders have access to oracles and warnings to increase collateral.Â
Hyperliquid trades at an all-time high
The native token, HYPE, continued its growth to a new all-time high. HYPE recovered and continued its rally with near-vertical gains, to $34.69. HYPE briefly peaked above $35.10, becoming one of the trending tokens for the second day in a row.Â
HYPE open interest also expanded to an all-time high of $1.15B, with near-record trading volumes of $500M. HYPE once again revived its community hype, as being one of the airdrop tokens that share the platform’s profits, and appreciate without insider selling. The confidence in HYPE may lead to an extended rally, especially after the growth of open interest on the exchange. In the past week, Hyperliquid posted several records, with open interest rising above $8.9B for all markets.
The HYPE rally also led to liquidations for leveraged whales that bet against the token. One of the whales took a position valued at over 30.5M USDC. The position closed with over $23M in losses after a few hours of the HYPE rally.Â
The Hyperliquid ecosystem aims to rival Solana with its native chain and the Hyperliquid EVM, compatible with Ethereum. Hyperliquid also expects inflows from other ecosystems, as Layer Zero recently introduced a new bridge for stablecoins and other tokens.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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