HYPE’s Bullish Momentum: What Are the Sentiments Pushing It?

The crypto market has been largely directionless in recent weeks, but HYPE, the native token of the Hyperliquid derivatives exchange, has emerged as a standout performer. 

Posting a 24% surge within 24 hours, HYPE has reignited discussions around liquidity, commodities trading, and whether this rally reflects temporary hype or a deeper structural shift.

Behind the price action lies a complex mix of market sentiment, silver futures activity, token mechanics, and evolving exchange dynamics. 

As Hyperliquid challenges industry giants like Binance in liquidity metrics, traders are asking an important question: What is really driving HYPE’s bullish momentum?

Key Takeaways

• HYPE’s rally is closely tied to rising commodities trading, especially silver futures
• Hyperliquid’s buyback-driven token design reinforces positive market sentiment
• Liquidity growth is impressive, but execution mechanics remain a key debate

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What Is Driving HYPE’s Bullish Momentum?

The recent surge in HYPE bullish momentum coincided with Hyperliquid announcing record liquidity milestones. 

According to platform data, Hyperliquid has surpassed Binance in certain crypto perpetual metrics, including tighter spreads and higher displayed order book depth.

A major catalyst is the HIP-3 protocol, which allows trading in both crypto and traditional financial derivatives. 

Open interest under HIP-3 has climbed sharply, reaching approximately $790 million, up from $260 million just one month earlier. This growth reflects rising participation beyond standard crypto assets.

While some traders caution that headline liquidity figures can overstate executable depth, the broader narrative has already shifted market sentiment decisively in HYPE’s favor.

Read Also: Hyperliquid Funding Rate Flips Positive: Long Squeeze Incoming?

Silver Token Analysis: Why Commodities Matter for HYPE

One of the most important factors behind the current hype crypto sentiment is the explosion in commodities trading—especially silver.

Silver perpetual futures on Hyperliquid recently logged $1.25 billion in daily volume and more than $155 million in open interest, making silver the platform’s third most active market after Bitcoin and Ethereum. 

This surge has led analysts to draw comparisons between HYPE and silver, positioning HYPE as a beneficiary of the broader silver crypto trend.

Unlike many exchanges, Hyperliquid uses trading fees from user-created markets to buy back HYPE on the open market. 

As silver trading volume rises, more fees are generated, increasing buy pressure on HYPE itself. This creates a reinforcing loop that strengthens bullish sentiment.

HYPE Price Drivers and Token Mechanics

Understanding HYPE price drivers requires examining its token design. Since October, users creating perpetual markets must lock up HYPE tokens. 

Trading fees are split evenly between market creators and the exchange, with the majority of Hyperliquid’s share funneled into buybacks via its Assistance Fund.

This structure means rising activity—whether from crypto or commodities—translates directly into demand for HYPE. Analysts note that this mechanism sets HYPE apart from many exchange tokens that rely solely on speculative demand.

Additionally, earlier bearish fears surrounding monthly token unlocks have eased. Analysts observed that only around 10% of unlocked supply was sold in recent months, significantly lower than anticipated, helping stabilize prices above the $20 level.

Read Also: Hyperliquid (HYPE) Vesting Schedule: Price Targets for Q1 2026

Market Sentiment vs. Real Liquidity Debate

Despite the optimism, hype market sentiment is not without controversy. Some experienced perpetual traders argue that Hyperliquid’s “speedbump” system—where order cancellations are prioritized—can inflate visible liquidity without guaranteeing execution.

During short-term ETH volatility, for example, Hyperliquid absorbed significantly less real volume than some competitors with thinner-looking order books. This has fueled debate over whether HYPE’s rally is sentiment-driven or structurally justified.

Still, markets often trade perception before fundamentals. As long as the narrative of Hyperliquid’s dominance persists, sentiment may continue to favor HYPE.

Read Also: Hyperliquid Perpetual Assets Guide

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Why HYPE Is Rising Despite Broader Market Weakness

So, why HYPE is rising while much of the crypto market remains muted?

Several forces are aligning:

• A visible shift toward commodities trading in crypto derivatives
• Easing sell pressure from whales and token unlocks
• Large-scale accumulation, with top buyers adding nearly $200 million worth of HYPE in 30 days

While HYPE remains down over 50% from its all-time high near $59, the recent recovery reflects improving structural conditions rather than pure speculation.

Read Also: Hyperliquid Just Passed GMX in Open Interest – Here's Why

Conclusion

HYPE’s rally is not driven by a single headline but by a convergence of liquidity growth, silver-driven volume, token economics, and evolving trader sentiment. 

While questions around real liquidity execution persist, the market is clearly rewarding Hyperliquid’s expansion beyond crypto-only derivatives.

Whether this momentum can extend toward $30–$35 will depend on sustained revenue growth and continued buybacks. For now, HYPE stands as one of the most sentiment-driven—and closely watched—tokens in the derivatives sector.

FAQ

What is driving HYPE’s bullish momentum?

HYPE is rising due to increased commodities trading, especially silver futures, and a buyback mechanism that converts platform revenue into token demand.

How is silver related to HYPE’s price surge?

Silver futures generated massive volume on Hyperliquid, increasing trading fees that are used to buy back HYPE, boosting its price.

Is HYPE’s liquidity higher than Binance?

Hyperliquid shows deeper order books, but some traders argue actual executable liquidity may be lower due to order book mechanics.

Is HYPE a long-term opportunity?

HYPE’s design supports long-term value if platform revenue continues to grow, though execution risks and market cycles remain factors.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.