HYPE Hits Record High as Borrowing Boosts $100 Rally
Hyperliquid’s HYPE token extended its rally after first reaching a record $92.01 on September 18, then climbed to a new high of $94.48 on September 19. HYPE was trading near $93.50, up about 8% in 24 hours and more than 18% over seven days. Its market capitalisation exceeded $20.7 billion, while daily trading volume reached roughly $1.8 billion. The move above the previous high near $89 puts HYPE into price discovery, with $100 less than 6% away.
The rally followed Hyperliquid’s launch of manual borrowing on its HyperCore infrastructure. Users can supply HYPE or BTC as collateral to borrow USDC or USDT. Borrowers took out $269 million in assets on the first day, while more than $400 million in liquidity was supplied. The borrowing layer links lending with portfolio margin, perpetual futures and spot trading. It allows HYPE holders to access liquidity without selling and gives stablecoin suppliers an opportunity to earn interest. The feature adds to HYPE’s use cases in staking, network fees and trading discounts.
Hyperliquid’s total open interest previously reached $14.3 billion, while HYPE derivatives open interest later rose to about $2.2 billion. Hourly funding on the HYPE perpetual contract remained positive near 0.0013%, equivalent to roughly 11% annually. This shows that leveraged longs are paying shorts, although funding has not accelerated as quickly as the token price.
Institutional access also expanded. A physically backed HYPE exchange-traded product began trading on the Warsaw Stock Exchange, and Kraken parent Payward announced plans for US distribution. A move above $94.50 with strong spot volume could support a test of $100. Traders may view $89-$90 as key breakout support, with $86 as the next downside reference. The main risk is the scheduled release of about 9.92 million HYPE tokens for core contributors on October 6. The unlock represents roughly 1% of maximum supply and could be worth more than $900 million at current prices.
Bullish
The immediate impact on HYPE is bullish. The token has broken above its previous high, entered price discovery and reached within 6% of the $100 level. Strong spot volume, rising derivatives open interest and increased borrowing activity indicate expanding demand and liquidity. Positive funding shows that traders are positioning for further gains, while the slower rise in funding compared with price suggests leverage has not yet reached an extreme level.
The manual borrowing feature may provide longer-term support by increasing HYPE’s utility. Holders can use the token as collateral without selling, which could reduce immediate sell pressure. Institutional product listings and planned US distribution may also broaden market access and improve liquidity. However, the rally remains vulnerable to profit-taking and leveraged liquidations if HYPE loses the $89-$90 breakout zone. The October 6 unlock of nearly 9.92 million HYPE could add substantial supply and weigh on price, particularly if recipients sell into strength. Therefore, the near-term bias is bullish, but traders should monitor spot volume, funding rates, support near $89-$90 and the token unlock closely.