Hyperliquid (HYPE) Defies Market Volatility: $29M DeFi Lobby Launch and Outcome Trading Pivot
This week, Hyperliquid made a big political statement by announcing the creation of the Hyperliquid Policy Center, an advocacy group based
Quick overview
- Hyperliquid has launched the Hyperliquid Policy Center in Washington, DC, funded by 1 million HYPE tokens, approximately $29 million.
- Jake Chervinsky, a cryptocurrency lawyer, has been appointed as the CEO of the Policy Center, which aims to advocate for a regulated path for decentralized finance in the U.S.
- Despite the political move, HYPE's market performance remains weak, trading at around $28, down 2.4% in the last day amid cautious cryptocurrency sentiment.
- The platform maintains strong business fundamentals, leading decentralized perpetual exchanges with nearly $5 billion in open interest, despite recent price pressures.
This week, Hyperliquid made a big political statement by announcing the creation of the Hyperliquid Policy Center, an advocacy group based in Washington, DC, that will be financed with 1 million HYPE tokens, or about $29 million. Markets, however, brushed off the attention-grabbing move: HYPE is currently trading at about $28, down about 2.4% over the last day, as general cryptocurrency sentiment becomes cautious.
Hyperliquid Takes Its DeFi Vision to Capitol Hill
Jake Chervinsky, a seasoned cryptocurrency lawyer and former policy chief at the Blockchain Association, was named creator and CEO of the Policy Center by the Hyperliquid Foundation on Wednesday. Promoting a “clear, regulated path for decentralized finance to thrive in the United States,” with an emphasis on perpetual derivatives and blockchain-based financial infrastructure, is the organization’s specific mission.
The founding team is completed by policy counsel Brad Bourque, a former associate at Sullivan & Cromwell, and policy director Salah Ghazzal, who was previously Variant’s policy lead.
This is a “critical time in policy discussions,” according to Jeff Yan, co-founder of Hyperliquid, who claimed the platform has not yet had a cohesive voice in Washington. Chervinsky echoed the urgency: “The United States must choose — adopt new rules that allow this innovation to thrive here at home, or wait and watch as other nations seize the opportunity.”
The timing is purposeful. Although a bill outlining regulatory oversight is still delayed in the Senate due to stablecoin clauses, Congress is actively working on legislation pertaining to crypto market structure.
Hyperliquid DEX’s Dominance Remains Intact Despite Price Weakness
Regardless of how the market perceives HYPE’s current price, Hyperliquid’s fundamental business indicators are strong. By open interest, the platform tops all decentralized perpetual exchanges with nearly $5 billion, more than doubling that of its closest rival, Aster, which is at $1.7 billion. The platform handled $5.4 billion in trade volume in the last 24 hours alone, with a monthly turnover of $256.3 billion.
The February introduction of user markets under the HIP-3 proposal helped to rekindle a lot of this energy. Daily volumes reached $5.2 billion in early February due to a surge in precious metals, but they have subsequently slowed to about $261 million daily. The HIP-4 plan, which would introduce prediction markets to the platform, a possible new growth vector, has the support of developers.
HYPE/USD Technical Analysis: $28 Support Is the Line in the Sand
HYPE is under pressure but not yet in freefall, according to price activity. The token has underperformed in a market already engulfed in “Extreme Fear” sentiment, falling about 7.25% in the last week. The slight 0.78% loss in Bitcoin over the same 24-hour period translated into a 2.4% reduction in HYPE, or a beta of about 2.7, which is in line with the usual behavior of higher-risk altcoins during moderate risk-off episodes.
Trading volume dropped 11.33% to $179.5 million, indicating that there isn’t much conviction behind the selling. This is primarily a macro-driven move, with no particular negative catalyst pushing HYPE lower on its own.
Key Levels to Watch
Immediate support is being provided by the $28 zone. Bulls need a $30 recovery to indicate fresh buying intent, and a hold here invites sideways consolidation. However, a break below $28 would reveal the next significant support, which is close to $26, which would indicate an additional 7% down from current prices.
Hyperliquid Price Prediction: Cautious Consolidation With Upside Catalyst Potential
HYPE appears to be range-bound between $26 and $30 in the near future. As Bitcoin tries to retain the $66,000 mark, the path of least resistance stays sideways to slightly downward. In the upcoming weeks, there is a good chance that HYPE will return to $32–$34, the levels last tested prior to the recent market-wide decline, if overall market sentiment levels off and the Policy Center produces favorable regulatory headlines from Washington.
The token’s political aspirations currently surpass its chart. However, HYPE may experience significant long-term effects if Hyperliquid’s wager in Washington is successful in securing favorable DeFi legislation.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save