It’s the weekend, the Middle East is turning into a powder keg again, and traditional markets are fast asleep. What does capital do at such moments? He nervously looks for a way out. And this is where Hyperliquid, all in white, enters the scene. While the rest of the financial world waited helplessly for the Monday bell, this decentralized exchange was in a real mess. And the HYPE token itself? It had a pretty decent rebound, proving that access to trading at any time of the day or night has a very specific price.
Fear has big eyes, and Hyperliquid (HYPE) benefits from it
Reports of the fall of the regime in Iran and potential carnage in the Middle East caused immediate panic on global markets. This mechanism is a classic escape in the so-called safe havens. Bitcoin ricocheted while gold and oil skyrocketed. A standard to which we have already become accustomed – especially when Donald Trump is at the helm of power overseas.
But let’s look at the native token of the Hyperliquid decentralized exchange, HYPE. It suddenly showed its claw, growing by over 6%.
At the end of last month, HYPE was hovering around USD 26, and on last nervous Sunday it reached almost USD 32. Sure, it’s still a long way from September’s ATH of around USD 58, but considering that it’s already gained 25% since the beginning of the year, it’s hard to complain about boredom in this ecosystem.
Especially since owning the Hyperliquid token can give you exposure to numerous airdrops within the HyperEVM ecosystem.
Why does 24/7 make such a difference in crypto? Hyperliquid (HYPE)
Saturday evening, geopolitics has caused problems again, and you have to quickly review your wallet. Where are you going?
Traditional stock exchanges have their doors locked. Centralized crypto platforms? The situation with them varies, they often lack sufficient liquidity to close a larger position efficiently and without price slippage. There are also differences with the security of funds and “Proof of Reserves”.
And this is where places like Hyperliquid make the entire market realize their true value.
This ecosystem has long ceased to be an experimental sandbox for a handful of degens bored with Solana.
Last Saturday, the platform raised $200 million. This is a result we haven’t seen there for quite a few weeks.
Big fish clearly went shopping or hedging so as not to wake up on Monday with the proverbial hand in the potty. Institutions are slowly realizing that such a DEX is sometimes really the only lifeline to optimize their positions in situations such as the sudden outbreak of war between the US and Iran.
Specifics, i.e. Hyperliquid (HYPE) tokenomics
Let’s leave aside the current sentiment around the project for a moment and look “under the hood”. Why does every market turmoil do this project so much good?
The answer is pure mathematics and Hyperliquid’s cleverly designed mechanics.
Larger stock market moves made in panic = higher commission income for the protocol itself.
In addition, launching new markets on Hyperliquid requires staking HYPE tokens, and a large part of the fees collected goes back to the market in the form of periodic repurchases of this asset by the team. Then, with the rest, these tokens are burned, which reduces inflationary pressure.
This means that the more the market moves, the stronger the demand pressure for the HYPE token.
In extremely uncertain times, an infrastructure that no one will pull the plug on becomes a damn useful risk pricing tool.
