The HYPE token of the Hyperliquid ecosystem has shown rapid growth over the past week, surpassing the $50 mark for the first time in eight months. According to the latest data, the asset’s price has approached $59, resulting from a number of factors, including a short squeeze, interest from large investors, and the launch of new ETF products.
This is reported by Business • Media
Reasons for HYPE’s Growth: Short Squeeze and ETF Launch
According to analysts at Santiment, on May 18-19, 2026, the volume of short positions on HYPE at cryptocurrency exchanges significantly increased. This led to the formation of a short squeeze—a situation where traders are forced to buy back the asset due to position liquidations or to minimize losses, further amplifying the price increase. At the same time, funding data indicated a predominance of bearish sentiment among traders who were hoping for a price drop.
“Santiment also noted that open interest (OI) for HYPE futures remains at a high level—over $1.9 billion. Analysts believe this indicates sustained significant interest in the asset despite large-scale liquidations.”
Another catalyst for the rally was the launch of ETF products based on Hyperliquid, which attracted the attention of new market participants to the HYPE token.
Whale Activity and Addresses Linked to Grayscale
Amid the growing popularity of HYPE, the analytical service Lookonchain recorded significant activity from large investors. One wallet withdrew $40 million in USDC from the Binance exchange, with $10 million of that amount directed to Hyperliquid for purchasing HYPE. To date, this investor has already acquired 22,700 HYPE worth approximately $1.1 million.
Another major player transferred $19 million in USDC to Hyperliquid, purchasing about 76,600 HYPE for $3.8 million. Additionally, journalist and analyst Colin Wu, citing Arkham data, reported that addresses potentially linked to Grayscale are actively accumulating HYPE through exchanges and OTC desks.
According to Wu, over the past week, one of the addresses purchased tokens through Wintermute, FalconX, Coinbase, and Flowdesk. Currently, this wallet holds 176,000 HYPE worth nearly $10 million.
Furthermore, Lookonchain reports that two wallets associated with Grayscale have collectively purchased and staked over 510,000 HYPE worth around $25 million.
Previously, Bitwise’s Chief Investment Officer Matt Hougan called Hyperliquid one of the most important crypto projects of recent years and considers the HYPE token undervalued. Meanwhile, former BitMEX CEO Arthur Hayes predicted that the value of HYPE could rise to $150 if high financial metrics and active trading volumes are maintained.