Hyperliquid flips the bear market script with a 71% surge while trillions vanish from global risk trades

Hyperliquid's HYPE token has significantly outperformed the broader digital asset market, surging approximately 71% to $35 while major assets like Bitcoin declined amid a global risk-off wave that erased about $6 trillion from risk trades in early 2026. This rally is structurally supported by Hyperliquid's core product: perpetual futures. When volatility spikes, trading activity increases, generating fees that are mechanically used to buy back HYPE tokens, creating a direct buy pressure loop independent of general market sentiment. This mechanism strengthens as fear increases turnover. Furthermore, product catalysts like the HIP-3 upgrade are widening the protocol's revenue base by enabling permissionless listings, including Real World Assets (RWAs) like silver, which has seen significant volume. The upcoming HIP-4 upgrade introduces outcome-style, event-based markets, positioning Hyperliquid to compete with prediction platforms like Polymarket by offering composable hedging strategies. Despite this bullish outlook, HYPE faces a near-term headwind: a large token unlock on February 6th, valued around $335 million, which could pressure prices if sold aggressively, though steady buybacks might mitigate the impact.

(Source：CryptoSlate)