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Hyperliquid (HYPE) Price Rally: Advancements in On-Chain Liquidity and Investor Sentiment for 2025

Hyperliquid (HYPE) Price Rally: Advancements in On-Chain Liquidity and Investor Sentiment for 2025

Bitget-RWA2025/11/20 11:52
By:Bitget-RWA

- Hyperliquid (HYPE) 2025 innovations-HIP-3 Growth Mode and BLP-boost liquidity via 90% fee cuts and shared pools, attracting institutional-grade trading. - TVL reaches $2.15B with $303B October volume and $1.3B buybacks, but price dips below $42.75 resistance amid bearish MACD and declining RSI. - On-chain metrics show $30B daily volume and 10.89% open interest surge, yet retail participation wanes after $4.9M market maker loss during Popcat manipulation. - Technical analysis highlights $35-$30 support ri

In 2025, Hyperliquid (HYPE) has become a central figure in the decentralized finance (DeFi) sector, propelled by innovative on-chain liquidity mechanisms and shifting market sentiment. Despite ongoing turbulence in the wider crypto space, HYPE has managed a 6.7% price increase during a broader downturn, highlighting the complex relationship between advanced infrastructure and trader attitudes. This review explores the elements influencing HYPE’s market behavior, referencing recent updates and blockchain analytics.

On-Chain Liquidity Advances: HIP-3 Growth Mode and BLP

Launched in November 2025, Hyperliquid’s HIP-3 Growth Mode marks a significant evolution in decentralized trading. By reducing taker fees for new markets by up to 90%, the platform has established itself as a strong rival to centralized exchanges. Market creators can now offer taker fees as low as 0.0045%–0.009%, with the highest volume tiers dropping to just 0.00144%

. This open-access framework, which enables market launches without centralized approval, is designed to attract unique assets like tokenized commodities and real-world yield products .

Supporting this initiative is the BorrowLendingProtocol (BLP), which is currently undergoing testnet trials. BLP facilitates effortless lending, borrowing, and withdrawals for assets such as

and PURR, creating shared liquidity pools that minimize dependence on isolated funds . Early indicators from comparable DeFi platforms suggest these features could increase platform usage by up to 30%, improving capital efficiency for users . As of November 2025, Hyperliquid’s total value locked (TVL) stands at $2.15 billion, backed by $303 billion in trading volume for October and $1.3 billion in HYPE token repurchases .

Market Sentiment: Trader Behavior, On-Chain Trends, and Technical Factors

Even with these structural upgrades, HYPE’s price has experienced short-term downward momentum. By late November, the token closed at $37.54, remaining under major resistance points and below the 200-day exponential moving average (EMA)

. Yet, blockchain data reveals a more intricate picture. Daily trading activity has climbed to $30 billion, and open interest (OI) has grown by 10.89% to reach $1.77 billion, indicating ongoing speculative activity . The long–short ratio of 2.01 further points to a bullish outlook among market participants .

However, social media signals and retail investor activity present a mixed outlook. HYPE has declined for seven straight days amid waning retail involvement, with the Relative Strength Index (RSI) at 43 and a negative MACD suggesting continued selling pressure

. A recent $4.9 million loss by Hyperliquid’s market maker (HLP) due to a Popcat (POPCAT) trader’s bid manipulation has also raised questions about the platform’s liquidity robustness . Nevertheless, the platform’s $100 million in 30-day revenue—all directed to buybacks through the Hyperliquid Assistance Fund—shows a strong commitment to supporting token value .

Navigating Structural Advantages and Short-Term Swings

The gap between Hyperliquid’s on-chain strengths and its price performance underscores the ongoing struggle between building long-term value and managing short-term market sentiment. While HIP-3 Growth Mode and BLP are crafted to draw institutional capital and broaden asset options, their effect on HYPE’s price is ultimately shaped by trader reactions. For example, the 10.89% rise in OI reflects trust in the platform’s capabilities, but technical signals like a bearish MACD and falling RSI suggest caution is warranted.

HYPE’s ability to reclaim the $42.75 resistance level will be pivotal. Failing to break through could see the price drop to the $35 support, with further declines possible if $30 is lost

. On the other hand, a decisive move above $42.75 could reinforce the bullish case, leveraging fee reductions and growing TVL to accelerate adoption.

Summary

With the rollout of HIP-3 Growth Mode and BLP in 2025, Hyperliquid has positioned itself at the forefront of decentralized perpetual trading, offering structural incentives to draw liquidity and diversify its asset base. Still, HYPE’s price is heavily influenced by market sentiment, where technical signals and retail trends can overshadow fundamental progress in the short run. Investors should balance the platform’s long-term promise against immediate volatility, understanding that HYPE’s future will depend on its capacity to maintain trading momentum and realize its comprehensive DeFi ambitions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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