Hyperliquid (HYPE) Cryptocurrency Hits All-Time High Amid Institutional Interest
The token rose above $60, gaining 9.7% in a day, amid rumors of a pre-IPO. ETF inflows into HYPE reportedly exceeded those of Bitcoin.
Title: Hyperliquid (HYPE) at $62: How Wall Street Quietly Built the First Crypto IPO on a Decentralized Exchange
Author: Independent financial analyst specializing in digital assets and institutional flows (experience since 2017, including structuring products for family offices).
Introduction
On May 22, 2026, the Hyperliquid (HYPE) token is trading around $57-62 after hitting an all-time high of $62.14 the previous day. The asset gained 9.7% in 24 hours, with a market cap exceeding $13.4 billion. At first glance, this is another round of retail enthusiasm around a blockchain project. But the reality is much deeper and more cynical.
The media writes about "pre-IPO rumors" and "ETF inflows." However, I see the beginning of a new era: Hyperliquid is becoming the first example in history of how decentralized trading infrastructure becomes institutionalized through regulated products without having a formal legal entity. This creates both enormous opportunities and hidden risks that go unmentioned.
[The Core]: What's Really Happening
Headlines about the "second coming of an altcoin" are misleading. HYPE is rising not because the crypto community suddenly fell in love with a new layer-1. The growth is driven by three fundamental shifts happening simultaneously:
1) Institutional validation via 13-F. On May 21, it became known that Goldman Sachs not only exited positions in Solana and XRP ETFs but also disclosed a new position in Hyperliquid in its quarterly report. Goldman Sachs never "plays" with retail money. This signal is a direct indication to large funds that the asset has passed due diligence at the highest level.
2) Sustained demand through ETFs. Bitwise, Grayscale, and 21Shares launched spot ETFs on HYPE on Nasdaq and NYSE. In the first week, inflows totaled $22.3 million, with no days of outflows. Moreover, Grayscale accumulated $25 million in HYPE and staked it. Bitwise staked over 6 million tokens, directing 10% of ETF fees to directly buy and hold HYPE. This is not trading—it's structural, quasi-index demand.
3) Regulatory green light. The SEC granted an "innovative exemption" for 24/7 trading of tokenized securities on decentralized platforms. This legalizes what Hyperliquid is already doing through HIP-3 products (stocks, commodities, pre-IPO contracts). The protocol ceases to be a "gray area" and becomes legitimate infrastructure.
The main non-obvious insight lies in the tokenomics mechanics. Hyperliquid directs 97% of all fee revenue to buy back HYPE from the open market. This is not "crypto junk" but a classic equity structure. The platform's daily trading volume reached $1.36 billion, with open interest on HIP-3 contracts at $2.6 billion. Each of these volumes directly generates token purchases. In effect, a HYPE holder owns a share in an exchange that buys back its own stock—this is the closest analog to an IPO in cryptocurrency, but without the need for a traditional listing.
Timeline and Context
- May 12, 2026 — 21Shares launches the first spot ETF on HYPE (ticker THYP) on Nasdaq. The token is around $48.
- May 14 — Bitwise launches BHYP on NYSE. Inflows continue.
- May 18-20 — ETFs record consecutive inflow growth: $4.4 million, $11 million, and a record $25.5 million. Bitcoin ETFs, adjusted for market cap, show worse performance.
- May 21 — HYPE reaches $62.14. Key drivers: Goldman Sachs position, announcement of SpaceX pre-IPO perpetual ($SPCX) by trade.xyz with an implied valuation of SpaceX at $1.78 trillion, and integration of USDC from Coinbase and Circle (which also staked HYPE).
- May 22 — Consolidation around $57-58, market digesting the rally.
Who Wins and Who Loses
Winners:
- Early institutional investors (Bitwise, Grayscale, Goldman). They entered the asset with a market cap of $10-11 billion and are now sitting on 15-20% dollar profits in just two weeks. Additionally, they earn staking yield (current APR on HYPE staking is estimated at 3-5% annually).
- Large market makers and arbitrageurs. The gap between futures and spot prices on HYPE during volatile periods reached 5-7%, offering opportunities for cash-and-carry arbitrage with leverage.
- Active traders on Hyperliquid. High activity and low slippage (liquidity increased 136% in a day) make the platform the best place to trade perpetual contracts on cryptocurrencies.
Losers:
- Traders on centralized exchanges (CME, Binance). Hyperliquid is draining liquidity. CME and NYSE are already lobbying regulators to impose controls on Hyperliquid, citing market manipulation. This is classic defense of a dying business.
- Small retail investors buying at the peak. The risk of a correction in the coming days is very high (see forecast below). The psychological level of $65 is a strong resistance, and a drop to $50-52 could liquidate those who entered on FOMO.
- Competing protocols (dYdX, Synfutures). Hyperliquid is capturing more market share: this week, the protocol collected 42% of all transaction fees across the entire blockchain, surpassing TRON (22.6%) and Ethereum (8%).
What the Media Isn't Saying
No major media outlet is writing about the serious threat of token unlocks. On May 6, 2026, the Hyperliquid team unlocked 422,000 HYPE (about $17.5 million at the time) for core contributors. The next major unlock will occur in the first half of 2027, but the market overlooks that the total supply is 1 billion tokens, with only ~425 million currently in circulation. Over 50% of tokens are still locked and will hit the market over the next 2-3 years. Current ETF inflows of $25 million look tiny compared to the upcoming selling pressure.
Moreover, the structure of the SEC's "innovative exemption" has a strict limitation: it is temporary (usually 2-3 years) and can be revoked with a change in administration. If the regulator changes its mind in 2027-2028, the entire line of Hyperliquid tokenized assets will collapse, and the protocol will return to the gray area. The risk of political changes in the US is not priced into the current HYPE price.
Forecast: Next 30 Days and 90 Days
30 days (until June 22, 2026):
High volatility. I expect attempts to test the $65-66 level in the first week of June, followed by a pullback to $52-55. Prediction markets (Arkham) estimate a 67% probability of reaching $66 by the end of 2026, but short-term overbought conditions signal an imminent correction. Support at $55 is critical: a break below this level opens the way to $48. The key growth catalyst is the public disclosure of stakes by other large funds (expected 13-F filings from Point72, Millennium Management). If they confirm positions, HYPE will surge again.
90 days (until August 22, 2026):
More likely is the formation of a $45-65 range with gradually declining volatility. The market will digest institutional entry and focus on real growth in ETF assets under management (AUM) and trading volumes on Hyperliquid. If monthly trading volume stabilizes above $50 billion (currently ~$40 billion equivalent) and ETF AUM exceeds $150 million (currently ~$60 million), the token could sustainably hold above $70. But given the current unlock pace and lack of a new major catalyst (like inclusion in the Coinbase Index or certification by the FCA in the UK), consolidation is more likely than a new ATH by August.
Editorial Forecast
Asset: HYPE/USDT
Direction: Sideways with a decline in the next 24-72 hours (-2% to -5%) after the sharp rally to ATH.
Key Levels: Resistance $62.50 / $65.00; support $56.80 / $55.00. A test of the $56-57 zone is likely over the weekend.
Confidence Level: Medium (60%).
Main Risk: An unexpected statement from the SEC regarding a delay of the innovative exemption or news that Goldman Sachs has already closed its position (trading "pump and dump" on news). Any negative regulatory action would crash the price by 20-25% in a single session. Investors who entered on hype should be prepared for sharp moves.
— Editorial Team
