HYPE Token Surges 30% Amid Crypto-Traditional Market Convergence
By John Nada·Jan 28, 2026·2 min read
HYPE token has surged over 30%, surpassing Bitcoin and Ethereum, reflecting a convergence of crypto and traditional markets, according to CoinDesk.
HYPE token has surged over 30%, significantly outperforming Bitcoin, Ethereum, and the CoinDesk 20 index. This rally reflects a growing convergence between the cryptocurrency and traditional markets, according to Hyunsu Jung, CEO of Nasdaq-listed Hyperion DeFi, which is building a strategic treasury of HYPE tokens. The HYPE token's recent performance highlights the shift in the financial landscape, where decentralized platforms are merging with conventional asset classes. Hyperliquid, the platform behind HYPE, has evolved to facilitate trading not just in cryptocurrencies but also in traditional assets like equities and commodities.
Since the launch of Hyperliquid Improvement Proposal-3 (HIP-3) in late 2025, traders can stake HYPE tokens to create markets for non-crypto assets. This innovation has coincided with a significant uptick in trading volumes, especially for traditional commodities like gold and silver. In the last 24 hours alone, the silver-USDC market registered a trading volume of over $1 billion. Hyunsu noted that within three months of the HIP-3 upgrade, Hyperliquid captured over $1 billion in Open Interest and around $25 billion in total trading volume, along with over $3 million in fees, all transparently on-chain.
The mechanism behind HYPE's price increase is a token-burning strategy driven by trading fees. Hyperliquid employs an automated approach that uses up to 97% of fee revenue to buy back HYPE tokens, effectively reducing the supply and creating a deflationary environment. This unique structural advantage sets Hyperliquid apart from other blockchain ecosystems. Additionally, the continuous availability of traditional markets allows traders to respond to global events, ensuring fairer spot prices outside regular trading hours.
The convergence of crypto and traditional finance is no longer a distant vision; it's happening now. As platforms like Hyperliquid continue to innovate, the lines between these markets blur further. Traders can access a wider range of assets than ever before, and the implications for market dynamics are profound. HYPE's performance is a testament to the growing acceptance of cryptocurrencies in mainstream finance, signaling a future where both worlds operate in harmony.