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HYPE Token Experiences Rapid Growth: Could This Be the Next Big Thing in Crypto or Just Another Short-Lived Trend?

HYPE Token Experiences Rapid Growth: Could This Be the Next Big Thing in Crypto or Just Another Short-Lived Trend?

Bitget-RWA2025/11/23 11:42
By:Bitget-RWA

- Hyperliquid's HYPE token surged 6.7% weekly amid crypto market declines, driven by product innovations and $100M buybacks despite a 12% November 2025 price drop. - Institutional optimism grows via HIP-3 Growth Mode and BLP innovations boosting $303B trading volume, but retail confidence wanes after a $4.9M liquidity incident. - Technical indicators show conflicting signals: bullish patterns vs. bearish MACD/RSI, while $1.77B open interest highlights leveraged risks after October's 18% single-day crash. -

The HYPE token, which serves as the native asset for the Hyperliquid decentralized exchange (DEX), has drawn significant interest even as the wider cryptocurrency market faces a downturn. Although its price dropped by 12% in November 2025, falling below $34, HYPE managed to buck the overall trend with a 6.7% increase over the week. This rally was driven by new product launches, speculative trading, and ecosystem-led buybacks. Still, the main question is whether this momentum is sustainable or just a short-lived spike.

Drivers Behind the Rally: Innovation and Liquidity Shifts

Hyperliquid’s ecosystem has played a pivotal role in HYPE’s recent gains. The rollout of HIP-3 Growth Mode and the BorrowLendingProtocol (BLP) has helped the platform stand out in the field of institutional-grade liquidity solutions. These features are designed to minimize slippage and attract high-frequency traders, supporting Hyperliquid’s achievement in October 2025 of

-a 31% rise compared to September.

At the same time, Hyperliquid’s assertive token buyback program has boosted market confidence. The platform used $100 million in revenue generated over 30 days to buy back HYPE tokens,

. However, retail investor activity has slowed, partly because Hyperliquid’s market maker suffered a $4.9 million loss due to a Popcat trader’s manipulation. This incident has , leading to a standoff between institutional confidence and retail caution.

Technical and On-Chain Analysis: Contradictory Signals

From a technical analysis standpoint, HYPE’s price movement remains divisive. The token briefly

, forming a bullish “Adam and Eve” pattern, but has since slipped below the key $42.75 resistance. Both the MACD and an RSI of 17—typically an oversold indicator— .

On-chain data, meanwhile, points to heightened speculation. Open Interest (OI) climbed 10.89% to $1.77 billion, with a long–short ratio of 2.01, showing a preference for long positions

. However, this leverage increases exposure to risk: knocked HYPE out of the top 20 cryptocurrencies by market capitalization, and some analysts warn of a possible further drop of 25% to $25. The token’s volatility highlights the delicate balance between bullish momentum and the threat of forced liquidations.

Ecosystem Developments and Market Mood in November 2025

November 2025 delivered a mix of positive and negative developments for HYPE. One notable event was Native Markets staking an additional 800,000 HYPE tokens, which allowed USDH to be recognized as an “Aligned Quote Asset.” This change

, providing a boost to the platform.

On the downside, the month was marked by confusion after the

token soared 11 times in value before crashing 37.3% following . While not directly related to Hyperliquid, the TNSR episode underscored wider worries about tokenholder value during acquisitions, indirectly raising questions about HYPE’s governance structure.

Market opinions remain sharply divided. Supporters highlight Hyperliquid’s $1.3 billion in buybacks and

if the $42.75 resistance is overcome. Skeptics, on the other hand, point to the bearish head and shoulders formation and the overall fragility of the crypto sector, arguing that HYPE’s future depends on its ability to withstand liquidations and maintain institutional backing .

Conclusion: High Risk, High Potential

HYPE’s journey highlights the tension in crypto markets between innovation-driven optimism and the risks of speculation. While Hyperliquid’s development plans and buyback initiatives lay the groundwork for future growth, the token’s heavy reliance on leverage and its vulnerability to broader economic shocks

introduce considerable uncertainty.

For those considering investment, the main factors to watch are:
1. Technical Breakout: Can HYPE surpass $42.75 to confirm a bullish trend?
2. Ecosystem Strength: Will Hyperliquid’s governance adapt to incidents like the Popcat event?
3. Shifts in Market Mood: How will the ongoing crypto slump and skepticism from tokenholder losses in acquisitions (such as TNSR’s case) shape HYPE’s outlook?

In the near term, HYPE is best viewed as a speculative asset, likely to trade within a range until these uncertainties are resolved. At present, it stands as a high-risk, high-reward token—neither a certain breakout nor a passing trend, but a volatile indicator of the crypto market’s ongoing evolution.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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