The decentralized derivatives exchange Hyperliquid is capturing market attention as its native token, HYPE, approaches new all time highs near the $40 mark on Sunday May 25. On-chain insights show the rally was fuelled the media buzz surrounding a billion-dollar Bitcoin bet reversal by a prominent whale trader.
Will HYPE price advance further or retreat in the weak ahead ?
Hyperliquid Price Hits All-Time Highs amid James Wynn Generates Tailwinds
In a bold trading move that has sparked media headlines, a crypto trader on Hyperliquid, identified as James Wynn (also known by the moniker “moonpig”), executed one of the largest on-chain short bets in recent history.
On Sunday, Wynn opened a $1 billion short position on Bitcoin (BTC) with 40x leverage, putting nearly $50 million of his entire wallet balance on the line via a cross-margin position. This audacious trade came just hours after he closed a similarly sized $1.2 billion leveraged long BTC position on Saturday.
The closure of the long position resulted in a significant $17.5 million reduction in Wynn’s historical profit, according to CoinGlass data. Wynn, who had previously predicted on Saturday that BTC would reach $110,000, acknowledged cutting his losses on X (formerly Twitter).
Bitcoin saw only a modest rise on Saturday, moving from approximately $107,300 to around $108,000. However, Wynn’s pivot to a short position, entered at an average price of $107,077, quickly turned profitable, reportedly netting him around $3 million.
His current short position faces liquidation if BTC climbs to $110,446 without additional collateral. Despite the recent loss on the long, Wynn’s total profit on Hyperliquid reportedly still stands at over an impressive $40 million.
Bull Double Down on Hyperliquid Amid Media Frenzy
Coinciding with these high-stakes trading maneuvers, Hyperliquid’s native token, HYPE, has experienced a significant price surge.
As of Sunday, HYPE price trading around $38.96, marking an 8.9% increase in the past 24 hours and pushing close to its fresh all-time high of $39.10. At the time of publication HYPE market captialization has hit $13 billion.
This represents a remarkable 113.1% increase over the past month. On-chain data shows the trading platform itself is witnessing a boom in activity, with open interest on Hyperliquid surging to record highs, as reported in CoinGlass’ latest HYPE derivatives trading data
Recent figures indicate HYPE open interest surpassing $1.3 billion, with an 8.9% increase alligning with the 9% daily timeframe price gains. This shows that despite Hyperliquid price trending at global peaks, majority of shor-term trends are betting on further upside.
This growth in user activity and the value locked on the platform are strong indicators of growing confidence in Hyperliquid’s offerings and enhances is dominance within the global decentralized finance (DeFi) sector.
The platform’s ability to handle substantial trades, like Wynn’s billion-dollar positions, further highlights its technical capabilities and could spur further demand amid growing institutional adoption of cryptocurrencies.
Exploding Social Momentum Underscores Hyperliquid’s Growing Prominence
The “hype” around Hyperliquid isn’t just financial; it’s also palpable across social media channels. According to data from LunarCrush, social momentum for Hyperliquid’s $HYPE token is exploding alongside its price.
As the token hit an all-time high of $38.85, on Sunday, the rally coincided with a staggering 25.6 million social engagements (a significant increase of 24.3 million) and 21,000 direct mentions (up by 17,300) from 5,600 unique creators (an increase of 3,900) over the last month.
This surge in social activity, coupled with record open interest and the high-profile trades being executed on the platform, paints a picture of a rapidly expanding ecosystem.
As traders like James Wynn make billion-dollar bets, and the HYPE token continues its ascent, Hyperliquid is solidifying its position as a key venue for on-chain derivatives trading, attracting both significant capital and widespread community attention.
The coming days will be crucial in observing whether these bullish trends for both the platform and its native token can be sustained.
Frequently Asked Questions (FAQs)
HYPE is the native token of the Hyperliquid platform. It recently surged to an all-time high due to increased open interest, major on-chain trades, and explosive social momentum.
James Wynn, also known as “moonpig” on-chain, is a high-profile crypto trader who recently flipped a $1.2B BTC long into a $1B BTC short on Hyperliquid. Why did Wynn’s Bitcoin trade draw attention? Wynn’s billion-dollar short is one of the largest on-chain
Wynn’s billion-dollar short is one of the largest on-chain positions ever, using 40x leverage.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/hyperliquid-hits-all-time-high-at-38-whats-the-hype-behind-the-13-trillion-rally/
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