Hyperliquid Native Token Climbs 24% as Silver Futures Trading Surges

HYPE, the native token underpinning the Hyperliquid derivatives platform, has risen 24% in value over the past day as trading activity in commodity futures intensified across the exchange.

Silver futures have emerged as a focal point of this activity. During Monday morning trading in the United States, silver contracts traded near $111 per token, generating more than $1.25 billion in volume over a 24-hour period. This positions silver as the third most actively traded market on Hyperliquid, trailing only Bitcoin and Ethereum. Open interest in silver futures has climbed above $155 million.

Hyperliquid introduced a mechanism in October allowing users to launch their own perpetual futures markets by staking HYPE tokens. Trading fees from these markets are divided equally between the platform and the individual who created the market.

The exchange operates a token buyback structure through its Assistance Fund. A significant portion of revenue generated from trading fees is allocated to purchasing HYPE tokens from the open market. As trading volumes and open interest increase, more capital flows into this buyback programme, which can create upward pressure on the token's price.

The uptick in commodity trading activity marks a shift for a sector typically dominated by cryptocurrency-native assets. Bitcoin has traded sideways in recent weeks, offering limited directional momentum for derivatives traders. The expansion into traditional commodities such as silver and gold suggests broader appetite for alternative trading instruments within decentralised finance infrastructure.

Jeff Yan, chief executive and co-founder of Hyperliquid, stated on social media that the platform has become the most liquid venue globally for cryptocurrency price discovery, though independent verification of this claim was not immediately available.

Industry impact and market implications

The surge in commodity futures trading on Hyperliquid reflects a broader trend of decentralised exchanges expanding beyond cryptocurrency-only markets. Traditionally, derivatives platforms in the digital asset space have concentrated on Bitcoin, Ethereum, and other tokens. The introduction of silver, gold, and potentially other traditional assets could signal growing institutional interest in using blockchain infrastructure for commodities exposure.

This shift may also indicate that traders are seeking diversification as major cryptocurrencies experience periods of low volatility or unclear direction. If sustained, increased commodity trading could reduce the correlation between platform performance and cryptocurrency market cycles, potentially stabilising revenue streams for decentralised exchanges.

From a regulatory standpoint, offering futures contracts tied to physical commodities raises questions about oversight and market structure. Unlike cryptocurrency derivatives, commodity futures are subject to existing regulatory frameworks in multiple jurisdictions. Platforms operating in this space may face scrutiny from regulators who traditionally oversee commodity markets, particularly if volumes continue to grow.

The token buyback mechanism employed by Hyperliquid creates a direct link between platform usage and token price dynamics. While this can incentivise market creation and liquidity provision, it also introduces reflexivity risks. Sustained declines in trading activity could reverse the buyback effect, potentially amplifying downward pressure on HYPE during market contractions.