Hyperliquid’s HYPE Token Surges 60 Percent Fueled by Staking and Treasury Buying The native token of the Hyperliquid decentralized exchange, HYPE, has experienced a dramatic price increase of 60 percent over a recent period. This surge appears primarily driven by two key on-chain activities: a significant rise in token staking and strategic accumulation by the project’s own treasury, even as other trading metrics showed little movement. While the price action was notably bullish, data from the derivatives market told a different story. Open interest, which reflects the total number of outstanding perpetual futures contracts, and trading volumes for those perpetuals remained largely flat. This divergence suggests that the buying pressure was not coming from leveraged futures traders speculating on short-term price moves. Instead, the momentum was rooted in actions that reduce the immediate circulating supply of HYPE tokens. The major catalyst has been a substantial flow of HYPE into staking contracts. By staking their tokens, users lock them up in exchange for potential rewards, effectively removing them from the available trading supply on the open market. This reduction in sell-side pressure can create upward momentum on price, especially if demand remains steady or increases. The high staking participation indicates strong holder commitment and a preference for earning yield over active trading. Simultaneously, the Hyperliquid treasury has been actively purchasing HYPE from the market. Termed balance-sheet buying or treasury accumulation, this strategy involves the project’s controlled funds buying and permanently holding its own token. Similar to staking, this action permanently reduces circulating supply. It is often viewed as a sign of long-term confidence from the project’s developers, as they use protocol-owned capital to back the asset. This dual mechanism of staking inflows and treasury buying created a powerful supply squeeze. The question now facing the market is whether this rally has a sustainable foundation. Price pumps driven mainly by supply reduction can be vulnerable if underlying demand does not materialize. The lack of parallel growth in futures markets suggests cautious sentiment among more speculative traders. For the price gains to hold or extend, the market likely needs to see an increase in actual usage of the Hyperliquid platform, such as growth in spot trading volumes, new user adoption, or innovative product launches that drive organic demand for the HYPE token. The current scenario presents a clear narrative. The HYPE rally was not fueled by the frenzied leverage typical of crypto bull runs. It was a move engineered by fundamental supply dynamics, through deliberate staking and strategic financial management by the project itself. This method can lead to a more stable price foundation if the project continues to build utility. However, the sustainability of the price level ultimately depends on the ecosystem attracting fresh capital and users, moving beyond supply mechanics to genuine demand. The coming period will test whether the initial spark from staking and treasury activity can ignite broader, sustained interest in the Hyperliquid exchange and its token.
