Hyperliquid Token Price Surges 21% Following Regulated ETF Launch and Coinbase Partnership

Hyperliquid's HYPE token experienced a significant price surge, reaching $46.64 after increasing by 21% in 24 hours. The sharp rise in value came as the company launched a regulated investment vehicle on Nasdaq and partnered with Coinbase to replace its native stablecoin USDH with USDC.

The THYP ETF, which provides direct exposure to HYPE tokens, recorded $1.8 million in trading volume on its first day, along with approximately $1.2 million in net inflows. The introduction of this regulated investment vehicle is expected to attract conventional investors and provide them with a way to gain exposure to the token without managing cryptocurrency wallets or navigating blockchain protocols.

As part of the partnership between Hyperliquid and Coinbase, Circle will oversee cross-chain technical operations for USDC on the platform. This move aims to minimize liquidity division between the two stablecoin options and has led to a significant increase in trading activity, with daily volumes exceeding $716 million. The bulk of reserve income generated by USDC on Hyperliquid will be channeled back into the ecosystem through its Assistance Fund, which facilitates automatic HYPE token buybacks.

Despite the current price surge, analysts warn that HYPE may experience a retracement unless it sustains a close above $50. Crypto Patel, a technical analyst, noted that the rejection near $46 aligns with a rising wedge breakdown formation and identified potential support zones at $33, $30, and $27.