Key Insights:
- HYPE price reached $55.52 all-time high on Sept. 9, gaining 18% from its Sept. 8 opening.
- Five development teams submitted proposals to deploy Hyperliquid’s native USDH stablecoin.
- Polymarket prediction market showed Native Markets leading at 55% odds for the USDH ticker.
Hyperliquid’s native token HYPE price reached a new all-time high of $55.52 on September 9, marking an 18% surge from its September 8 opening price of $47.10.
The rally coincided with intensified competition among development teams vying to deploy the protocol’s upcoming USDH stablecoin.
USDH Stablecoin Competition Drives HYPE Market Interest
The HYPE price momentum began following Hyperliquid’s Sept. 5 announcement of its governance-driven USDH stablecoin launch.
The protocol opened deployment to competing development teams, requiring validator approval and a gas auction victory before going live.
Five teams submitted proposals for the USDH ticker: Native Markets, Paxos, Frax Finance, Agora, and Sky.
Native Markets positioned itself with full US treasury backing and regulatory compliance, while Paxos emphasized its established stablecoin infrastructure across multiple jurisdictions.
Frax Finance proposed a hybrid approach combining algorithmic mechanisms with traditional backing.
Agora offered yield-generating features through institutional partnerships and compliance frameworks.
Sky presented a decentralized framework derived from its MakerDAO heritage with multi-chain capabilities.
Native Markets highlighted its Max Fege backing system and global compliance profile. The team promised full cash and treasury equivalent reserves managed by BlackRock.
Paxos leveraged its existing regulatory approvals across the North American, European, and Asia-Pacific regions.
A Polymarket poll launched Sept. 8 tracked community sentiment around the USDH deployment competition.
Native Markets led with 55% odds, followed by Paxos at 37% and Sky at 9%. Frax held 2% odds as of Sept. 9 morning, with HYPE price rocketing.
The prediction market attracted $54,976 in volume within 24 hours, reflecting trader interest in the outcome. Native Markets’ lead reflected its comprehensive regulatory approach and established institutional relationships with traditional finance partners.
VanEck Endorses Agora Proposal
VanEck founder Jan van Eck published a Sept. 8 statement supporting Agora’s bid, praising Hyperliquid’s technology and governance model.
He wrote:
The asset management firm disclosed its existing HYPE holdings, spanning several months, and expressed interest in contributing to the ecosystem. The VanEck founder stated:
Van Eck defended the partnership against community criticism, noting VanEck’s research contributions and established position in the space.
He emphasized the firm’s commitment to supporting HYPE regardless of the USDH outcome.
Hyperliquid Revenue Impact Analysis
Omar Kanji of Dragonfly Capital estimated the USDH launch could generate $220 million in additional annual revenue for HYPE holders, assuming a 4% yield on the protocol’s current $5.5 billion USDC deposits.
The migration would represent a 7% reduction in USDC’s outstanding supply while cutting equivalent revenue from Circle.
This shift would fundamentally alter stablecoin dynamics on Hyperliquid, where USDC currently serves as the primary settlement currency for derivatives trading.
HYPE reached nearly $1.3 billion in annualized revenue, positioning it among the most profitable decentralized protocols.
The protocol processes the highest revenue per employee in decentralized finance, with $118 million distributed among 11 team members according to DefiLlama data.
The DEX captured 64.5% of all decentralized perpetual trading volume in August, processing $405.8 billion in monthly transactions.
Hyperliquid’s on-chain trading transparency is also home to notorious stories, such as whale 0xa523 losing over $40 million in less than a month.
The X user Lookonchain reported that the investor’s losses surpass the drawdowns of figures known for bad trades, such as Aguila Trades and James Wynn.
The whale sold at a loss over 886,000 HYPE, worth nearly $40 million, which would net an unrealized profit of nearly $9 million as of press time.
Additionally, the investor lost over $35 million long ETH, and is currently down by over $2 million shorting Bitcoin.
HYPE Trading Infrastructure Upgrades
Alongside the stablecoin launch, Hyperliquid announced plans to reduce taker fees, maker rebates, and volume contributions by 80% for spot pairs involving quote assets.
The protocol also confirmed expansion of permissionless access to spot quote assets, beginning with testnet deployment.
These structural changes aimed to deepen liquidity and lower barriers for traders while maintaining security through staking requirements and slashing penalties.
The upgrades represented a broader push toward decentralized participation in the exchange.
HYPE token’s rally to $55.52 reflected growing confidence in Hyperliquid’s market position as the USDH deployment approaches.
The competitive proposal process demonstrated institutional interest in the protocol’s expanding ecosystem and potential revenue streams.
Source: https://www.thecoinrepublic.com/2025/09/09/hype-price-at-new-55-52-all-time-high-amid-usdh-stablecoin-competition/
