$303B giant Hyperliquid steps into on-chain credit – Here’s why it matters

Key Takeaways

What new feature is Hyperliquid testing?

Hyperliquid is testing a BorrowLendingProtocol (BLP) on its Hypercore testnet.

Why does this matter for traders and DeFi?

A native lending layer could make Hyperliquid a full-stack onchain platform.

Is Hyperliquid [HYPE] broadening its scope?

The exchange is now testing a new borrowing and lending feature on its Hypercore testnet. This would be the platform’s first step into native onchain credit markets.

And after posting over $303 billion in trading volume in October, the timing is hard to ignore.

Is native lending next for Hyperliquid?

Hyperliquid’s latest experiment is a look at how the platform wants trading to work.

A new module (labelled BLP) has appeared on the Hypercore testnet, and early checks show that it is designed for borrowing, supplying and withdrawing assets directly on chain. By the press time, only USDC and PURR show up in testing, but even that limited set indicates a framework is being put in place.

Source: X

If this matures into a native lending layer, margin in the Hyperliquid ecosystem wouldn’t rely on isolated balances. It would sit on real, shared lending pools.

That would push Hyperliquid beyond perpetuals and closer to a full-on-chain market stack.

Hyperliquid stays ahead of the pack

The platform led all perpetual DEXs in October with a massive $303 billion in trading volume, edging out competitors like Lighter [LIGHTER] ($272B) and Aster [ASTER] ($260B).

Source: X

What’s more, its open interest hit $7.2 billion, surpassing all others combined. That kind of activity means liquidity and trader confidence, especially as Hyperliquid tests its next evolution in on-chain lending.

If the testnet module delivers, HYPE could soon redefine what a DeFi ecosystem looks like.

HYPE cools after a strong run

HYPE’s recent rally has hit a pause. The token traded near $40 at press time, unable to push past resistance after a solid October run.

RSI was around 46; not yet oversold but clearly losing steam. Meanwhile, the MACD slipped into negative territory, so bears have the upper hand for now.

Source: TradingView

Price action over the past week showed lower highs and smaller candles, a sign of hesitation. Unless fresh buying pressure kicks in soon, HYPE could continue consolidating before attempting another move higher.