Hyperliquid has quietly delivered one of the most important upgrades in on-chain derivatives this cycle. Hip-3 is no longer just a proposal or an experiment. It is working at scale.
Over the past weeks, Hip-3 open interest has exploded, hitting roughly $790 million and setting new all-time highs almost weekly. A month ago, this number was closer to $260 million. That type of growth does not happen from speculation alone. It comes from real traders deploying real capital.
The main driver has been commodities. Gold and silver have been making new highs, while crypto has lagged. Hip-3 made it possible to trade those markets on-chain, with deep liquidity and a fast order book. Traders clearly showed up.
From my perspective, this is one of the strongest confirmations yet that Hyperliquid is building real financial infrastructure, not just another perp DEX.
Hip-3 Open Interest Hits Record Levels
The numbers behind Hip-3 are hard to ignore.
Open interest recently reached around $793 million, driven largely by commodities trading. Gold and silver markets have been especially active, with silver perps even pushing close to $1 billion in daily volume at times.
Since launch, Hip-3 has already processed more than $25 billion in total trading volume. The majority of that activity comes from markets launched by TradeXYZ, developed by Hyperunit, Hyperliquid’s tokenization arm.
Some of the largest Hip-3 markets right now include:
- XYZ100, an index tracking the top 100 companies
- Silver perpetuals
- Nvidia perpetuals
XYZ100 alone accounts for roughly $165 million in open interest, or about 20% of all Hip-3 OI. This concentration shows where demand currently sits, but it also highlights how much room there is for new markets to emerge.
The key takeaway is simple. Hip-3 is not just adding new tickers. It is attracting sustained, high-quality flow.
What Is Hip-3 and How Does It Work?
Hip-3 stands for Hyperliquid Improvement Proposal 3. It is also referred to as Builder-Deployed Perpetuals.
At its core, Hip-3 makes the creation of new perpetual futures markets permissionless. Before this update, validators controlled which markets could be listed. With Hip-3, builders can deploy their own perp markets directly on Hyperliquid’s core infrastructure.
The process works as follows.
New markets are launched through a Dutch auction that runs every 31 hours. Participants bid for the right to deploy a market. To qualify, the deployer must stake 500,000 HYPE tokens.
This requirement may sound high, but it serves an important purpose. It aligns incentives. If a deployer launches a low-quality or malicious market, their stake can be penalized. There is also a seven-day unstaking queue, which further protects the system.
Once deployed, the market creator controls key parameters such as:
- Oracle selection
- Margin and collateral assets
- Funding and liquidation mechanics
- Fee share, up to 50%
- Governance and ongoing management
In short, Hip-3 turns Hyperliquid into a base layer for on-chain financial markets. Crypto perps are just the beginning. Equities, indices, commodities, FX, and structured products can all live here.
Why Hip-3 Is Strategically Important for Hyperliquid
Hip-3 strengthens Hyperliquid’s long-term positioning in a few critical ways.
First, it creates a powerful network effect. Every new market brings new traders, more liquidity, and more fee generation. That activity drives demand for HYPE, since staking is required to deploy and maintain markets.
Second, it removes centralized gatekeepers. Listings no longer depend on opaque decisions or closed committees. Builders with conviction and capital can launch markets directly.
Third, it supports the idea of Hyperliquid as the “AWS of liquidity.” Instead of competing asset by asset, Hyperliquid provides the infrastructure others build on top of.
This is a very different model from both centralized exchanges and most on-chain competitors.
Farming the Next Hyperliquid Airdrop Is Still in Play
Even with all this growth, farming Hyperliquid is far from over.
Being active across the entire protocol remains one of the most consistent strategies. That means more than just trading one market.
Activity can include:
- Trading perps, including Hip-3 markets
- Providing liquidity
- Staking HYPE
- Using new markets as they launch
- Staying active over time, not just during hype moments
Personally, I’ve been farming Hyperliquid actively for about a year now. I’ve traded, staked, and provided liquidity across different cycles. Hip-3 adds another layer to that strategy.
I’ve started using Hip-3 for gold and silver trading as well. Sometimes that’s risk-on. Other times it’s neutral exposure. Either way, it keeps activity diversified and aligned with where real volume is flowing.
Price going up also matters for farming. If future rewards are tied to HYPE or protocol growth, higher prices simply make those rewards more valuable.
Hyperliquid Price Update: Fundamentals Catch Up With Price
Hyperliquid’s native token, HYPE, is currently trading around $27.3, up roughly 10% on the day and close to 30% from the local bottom. While broader crypto markets have been relatively sluggish, HYPE has clearly decoupled.
This move is not driven by hype or marketing. It is a textbook example of a fundamental repricing.
The biggest catalyst is the explosive growth of Hip-3. Open interest across Hip-3 markets has reached new all-time highs near $790 million, signaling real capital commitment rather than short-term speculation. At the same time, specific markets such as silver perpetuals have seen daily volumes approaching $1 billion, at times surpassing major crypto assets like SOL and XRP on the same platform.
Liquidity has also become a major differentiator. Hyperliquid’s order book depth and execution quality now rival, and in some cases exceed, competing on-chain perp platforms. This has attracted more professional traders and shifted activity from incentive-driven farming toward product-driven trading. That transition matters. It creates stickier volume and more durable demand for the protocol.
Another important factor is supply absorption. Earlier concerns around HYPE token unlocks have largely faded. Despite steady unlocks, on-chain data shows significant withdrawals from exchanges, a classic sign of accumulation. Large holders appear willing to absorb supply rather than sell into strength, which has helped HYPE reclaim and hold key levels above $25.
Put together, rising Hip-3 utilization, deeper liquidity, and strong unlock absorption explain why HYPE has outperformed most larger-cap alts over the past day.
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My Personal Trade and Positioning
From a trading perspective, I’m currently sitting on my hands.
HYPE has broken out of its prior downtrend, which is constructive. However, on the chart it also looks like a clean five-wave move up, suggesting we could be near a local top. There is some light resistance in this area, and I generally don’t like shorting strength, even when the setup can be argued.
Could someone toss in a hedge short here? Sure. That can make sense for some styles. It just doesn’t fit mine.
Instead, I’d prefer to wait for a pullback and have alerts set around the $23.8 area to see how price reacts there. If we get a clean reaction and structure holds, that becomes far more interesting to me than chasing here.
That said, price going up is still very good for farming. Higher prices mean potential future rewards carry more value. So while I’m not actively trading HYPE at this level, I’m still very active in the ecosystem.
I’ll keep trading, staking, providing liquidity, and now using Hip-3 markets like gold and silver as well. Sometimes neutral, sometimes risk-on. The goal is steady participation, not forcing trades.
We keep plugging away for points.
HYPE is currently trading around $27.3, up roughly 10% on the day and about 30% from the local bottom.
The recent move aligns well with fundamentals. Hip-3 open interest is hitting new highs. Liquidity continues to deepen. Token unlocks have been absorbed without major downside pressure.
From a trading perspective, the structure looks strong, although short-term resistance is visible. From a farming and ecosystem perspective, higher prices are a net positive.
More activity, more usage, and more real demand are exactly what you want to see at this stage.
Final Thoughts
Hip-3 is not just another upgrade. It is a clear signal that on-chain trading is expanding beyond crypto-only narratives.
Hyperliquid is capturing real demand from commodities, indices, and professional traders. That demand is showing up in open interest, volume, and price.
For builders, traders, and farmers, Hip-3 changes what is possible on-chain. And for anyone active in the Hyperliquid ecosystem, staying engaged across the protocol still makes a lot of sense.
The data is doing the talking now.
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