Hyperliquid (HYPE) hit a $67 all-time high on Friday, May 30, after the US Commodity Futures Trading Commission acknowledged that perpetual futures contracts are legitimate instruments for price discovery and risk management. HYPE futures aggregate open interest across major exchanges climbed to $2.9 billion the same day — a 30% jump from the prior week — as bulls pushed for a run above $70.
What Drove the Move
HYPE posted a 23% weekly price gain heading into the weekend. That kind of move tends to pull in leveraged demand, and this time was no different. Futures open interest hit a new all-time high alongside the price, a combination that raises the stakes for anyone sitting short. A continued push higher could force those positions to close, adding fuel to the rally.
The CFTC's statement on perpetual futures was the macro catalyst. Jake Chervinsky, lawyer and CEO of Hyperliquid Policy Center, noted that the immediate benefit flows to centralized exchanges. He added that regulatory clearance for decentralized perpetuals "will likely take longer." So while the news lifted sentiment across the board, Hyperliquid does not directly benefit from the ruling yet.
One detail worth watching: the annualized funding rate on HYPE perpetual futures dropped to zero on Friday. Under normal conditions that rate sits near 9%, with shorts paying longs for the cost of holding positions. A rate at zero suggests a meaningful uptick in bearish bets — an unusual signal given the price action.
Hyperliquid's Revenue Position
Strip away the price action and Hyperliquid's fundamentals remain strong. Weekly perpetual volumes have held above $35 billion for two consecutive months, even as broader DeFi activity has been soft. That volume translates into revenue, and Hyperliquid currently leads all decentralized applications globally on that metric.
Over the past 30 days, Hyperliquid generated $55 million in revenue. The next closest was Pump, a token launchpad, at $33.8 million, followed by the Polymarket prediction market at $19.6 million. A portion of Hyperliquid's revenue is used to buy HYPE on the open market through its own decentralized exchange, creating a direct link between platform activity and token demand.
The platform operates without KYC requirements, mandatory volatility controls, or leverage caps. That structure gives it a competitive edge that traditional financial venues cannot easily replicate.
What Could Limit the Upside
Two factors temper the bullish picture. First, HYPE has a monthly token unlock of approximately 309,000 tokens added to circulating supply. That schedule runs through November 2027. On top of that, 389 million HYPE tokens remain unreleased and currently have no specific allocation — a meaningful overhang with no clear timeline.
Second, the HYPE ETF launch in the US has contributed to demand. Since Bitwise and 21Shares debuted their HYPE exchange-traded funds on May 12, the two products have combined for $122 million in net assets, according to SoSoValue. That is a meaningful inflow for a relatively new product, but ETF demand alone does not guarantee continued price appreciation.
The open interest surge reflects genuine conviction from bulls, but it also means the market is carrying more risk in both directions. A sharp reversal could hit leveraged long positions just as hard as a squeeze would hit shorts. The setup heading into the week is live — and it cuts both ways.
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