Why did Hyperliquid's price surge by 20%? HYPE breaks through strongly with commodity perpetual contracts and buyback mechanisms

January 27 News, Hyperliquid ecosystem token HYPE experienced a surge in Asian trading hours, with the price soaring over 20% in a single day, approaching $27 at one point, hitting a near three-week high, and increasing more than 30% from this week’s low. Amid a generally weak trend in mainstream cryptocurrencies, this performance stands out and has made Hyperliquid’s price a market focus.

The core driver behind this rally is the explosive growth of the HIP-3 mechanism. This proposal allows users to issue perpetual contracts on assets such as gold, silver, US stocks, and indices on the platform, requiring only a stake of 500,000 HYPE to deploy the market. This design makes Hyperliquid one of the few protocols capable of directly trading commodity derivatives on-chain, attracting significant capital seeking hedging and risk aversion.

Official data shows that the platform’s open interest has risen to $790 million, a multiple increase from $260 million a month ago. Among them, the Silver contract SILVER-USDC has become one of the most active products, with a total trading volume approaching $1 billion, second only to Bitcoin-related markets. As gold and silver continue to be favored in global risk-off sentiment, these products have opened new growth channels for Hyperliquid.

The surge in trading volume has also directly reinforced the deflationary logic of HYPE. The protocol directs most fees into a buyback pool, continuously purchasing HYPE on the open market, with buyback volume exceeding $44 million in the past 30 days; if users pay fees with HYPE, the tokens are burned directly. Additionally, the launch of more perpetual contracts means more tokens are locked for staking, further tightening the circulating supply.

On-chain data shows that whales are accelerating their deployment. Onchain Lens indicates that over the past 24 hours, HYPE worth more than $10 million has been transferred to private addresses, some of which were completed through Galaxy Digital’s OTC channels.

From a technical perspective, HYPE has broken out of a long-term descending wedge, with the MACD showing a bullish crossover, and RSI rebounding to 60, indicating a significant increase in buying momentum. If this momentum continues, the price could approach the $40 region; if it falls back below $20, a reassessment of the upward structure will be necessary.