🔎$HYPE is making a big comeback

weekly valuable insights

Jan 29, 2026

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GM friends.

Here’s what I’ll cover today:

🔎Why is HYPE pumping?

📊 Crypto chart of the week

🗞️ The latest DeFi news

🔎Why is HYPE pumping?

In the past 3 days, HYPE has been one of the best performing tokens.

After weeks of going down like most other altcoins, it just skyrocketed from $22 to $32, an almost 50% increase, which is not bad at all for a token with a whopping $7 billion market cap.

Now, to be frank, I was initially surprised by this pump as well.

I’ve done a bit of research, though, to see what potentially caused this and found a few interesting things 👇

1. A whale who dumped tens of millions of dollars in HYPE finally ran out of tokens

This entity has been heavily selling HYPE for the past few weeks.

The good news, though, is that on Jan. 27, it finally ran out of tokens.

With the sell pressure from this entity finally gone, many Hyperliquid supporters stepped in and started buying HYPE, which is likely the main reason why HYPE pumped over 20% exactly on Jan. 27.

HIP-3 markets’ daily volume is skyrocketing

HIP-3 is a major Hyperliquid upgrade that supports permissionless perps creation.

Using it, anyone building on top of Hyperliquid can launch custom perps for assets that are not yet listed on the Hyperliquid exchange.

And so far, most builders used HIP-3 to launch equity and commodity perps.

And it turns out that the demand for this type of perps is huge. It’s been less than 5 months since HIP-3 went live, and the daily trading volume of the stock, ETF, and commodity trading pairs created using it is now surpassing $2 billion!

Now, you may ask how HYPE holders benefit from this?

In 2 ways:

From trading fees - While the fees for HIP-3 markets are 90% lower than for other markets, Hyperliquid still generates $100k-$200k in daily revenue from them
Ticker auction revenue - Builders who want to launch a HIP-3 market need to purchase a trading ticker, which usually costs $10-$70k worth of HYPE

So, increased HIP-3 adoption has a direct positive impact on HYPE.

Next, I’ll cover another major recent Hyperliquid achievement (perhaps the most interesting one) and what I expect to happen next with the broader market.

Together with The Risk Protocol

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Follow them on X, and check out their Litepaper in the pinned Tweet.

Hyperliquid became the most liquid venue for BTC price discovery

Hyperliquid founder Jeff shared on X that Hyperliquid now has deeper liquidity for BTC perps than Binance.

This is a big deal for a simple reason:

Whales want to trade on the exchange with the deepest liquidity, as otherwise, they will incur massive losses because of slippage when placing taker orders.

Hyperliquid becoming the most liquid exchange might help it attract more big traders, which would have a positive impact on its revenue in the long run.

What’s next?

A key date for the entire market is Jan. 31.

What happens then will impact all altcoins and stocks (including HYPE).

On this day, we will finally get to know if the US government will be shut down or not. If this actually happens and it is an extended shutdown, it could have a pretty big negative impact on both the stock and the crypto market.

There’s a 65% chance of this happening at the time of writing, according to Polymarket, but the good news is that it decreased from 75-80% a few days ago.

If somehow the US government doesn’t shut down, that would be great for markets and could lead to a short-term relief rally, which may also have a positive impact on HYPE. However, even in this scenario, I unfortunately still think most altcoins will continue to underperform in the mid-term due to current macro uncertainty.

I shared my view on the market last week in this article: