Hyperliquid’s native token, HYPE, has surged past its previous limits, notching a new all-time high of $35.93.
This milestone arrives just hours after Hyperliquid disclosed its correspondence with the US Commodity Futures Trading Commission (CFTC), signalling serious intent toward regulatory clarity and broader market access.
This development may mark a turning point for decentralised perpetual futures exchanges, as Hyperliquid balances aggressive on-chain leverage with increasing institutional scrutiny.
With open interest and user participation reaching record levels, HYPE’s momentum appears far from over.
Hyperliquid’s Engagement with the CFTC Sparks Confidence
Hyperliquid’s decision to engage directly with the CFTC may have set the stage for its recent market success.
In response to the regulator’s request for information, the team submitted two detailed letters outlining how its perpetuals DEX operates within the context of DeFi.
These letters addressed key topics such as 24/7 trading mechanics, pre-funded collateral models, and automated liquidation systems.
This kind of proactive communication reflects a broader effort to bridge decentralised innovation with traditional regulatory expectations. In doing so, Hyperliprotects its platform and also establishes its role as a serious participant in the maturing crypto derivatives space.
The move appears to have been well received by traders and observers alike. Open interest surged above $8.9 billion across markets, while daily trading volumes approached $500 million.
This growth in participation indicates that users see value in a platform willing to meet regulators halfway.
Hyperliquid’s commitment to transparency and resilience during high-volatility periods also reassures cautious traders. Even during recent price swings and leveraged whale liquidations, the platform demonstrated operational stability.
This robustness, now paired with an effort to achieve US compliance, may boost HYPE’s credibility and appeal to a more risk-averse investor base.
If the dialogue with the CFTC progresses favourably, it could serve as a model for other DeFi protocols seeking mainstream acceptance.
HYPE Touches All-Time High as Utility and Demand Expand
HYPE’s price action over the past few weeks has been nothing short of remarkable. After dipping below $10 in March and April, the token rebounded with impressive strength, driven by renewed interest in Hyperliquid’s leverage capabilities and trading volume.
On May 23, 2025, HYPE reached a new all-time high of $35.93, marking an 825% increase from its all-time low of $3.81 just six months ago.
This rally is not only a response to market excitement but also a reflection of growing confidence in the token’s long-term utility.
As the underlying Hyperliquid ecosystem expands, especially through its native EVM-compatible blockchain, HYPE’s role is becoming more embedded in platform operations.
The native chain allows for deeper integration of DApps and liquidity solutions, which in turn increases usage and demand for the token. With LayerZero enabling new bridges to other ecosystems, users and liquidity can now move in more freely, reinforcing HYPE’s central position.
The token’s design as a profit-sharing asset without insider allocation also enhances its appeal. Its distribution aligns incentives across the community, reducing sell-side pressure and building organic support.
Traders who received HYPE through airdrops have shown loyalty, further contributing to its strong price performance.
If the regulatory path continues to open up and utility deepens with ecosystem development, HYPE may have room for further appreciation. The combination of favourable external signals and internal growth mechanics puts it in a rare position among DeFi tokens.
For those watching crypto markets closely, HYPE is no longer just a high-risk bet. It is becoming a potential leader in compliant, decentralised derivatives.
Conclusion
HYPE’s recent all-time high is more than just a chart milestone. It reflects a maturing project that is navigating the complex intersection of DeFi innovation and regulatory expectations.
With Hyperliquid opening communication with the CFTC and expanding its technical capabilities through the HyperEVM chain, there are clear drivers behind the token’s surge.
Should this trajectory continue, HYPE could not only sustain its gains but also become a cornerstone asset in the decentralised trading market.