Here’s Why Hyperliquid (HYPE) Price is Pumping

Hyperliquid's price is going up fast right now. People are buying more of it, and there's a big update to how it works. The token is up almost 13% today

Hyperliquid (HYPE) is quickly becoming a hot topic in the crypto world. The decentralized exchange has seen its token surge rapidly, with several developments pushing the asset into the limelight.

As of March 19, HYPE price is showing strong gains of 12.9% over the past 24 hours, trading at $14.93. However, there’s more to it than meets the eye.

The token’s trading volume has also shot up significantly by 46%, indicating heightened activity among traders as they capitalize on the asset’s recent momentum.

This rally follows closely behind Hyperliquid’s announcement of new staking tiers, set to launch on or after April 30. These tiers will offer users reduced trading fees based on the amount of HYPE staked.

The update also includes a revised fee structure, presenting Hyperliquid as a competitive option in terms of trading costs. According to the exchange, even without staking, users will benefit from lower trading fees compared to centralized exchanges, despite the new system ensuring that the protocol generates greater revenue and HYPE gains more utility.

Moreover, spot trading volume will be counted double toward a trader’s fee tier, further encouraging traders to engage in more activities on the exchange.

Introducing Staking Tiers

The staking tiers will be determined by the amount of HYPE staked, with lower tiers offering less comprehensive benefits.

These updates are expected to be implemented on or after April 30 to allow users ample time to adjust to the new system and tiers.

As part of this update, the exchange is introducing a triple-tier system for trading fees, offering traders lower rates based on their monthly trading volume (MVP points) and the tier they belong to.

At the Bronze tier, traders will begin at 0.15% trading fees. However, this can go as low as 0.1% with a monthly trading volume of over 100,000 units.

At the Silver tier, traders will start at 0.1% trading fees, which can go as low as 0.05% with a monthly trading volume of over 300,000 units.

Finally, at the Gold tier, traders will begin at 0.05% trading fees, which can go as low as 0.01% with a monthly trading volume of over 1 million units.

To qualify for the Silver tier, users need to stake at least 1,000 HYPE tokens and maintain a monthly trading volume of at least 100,000 units.

To qualify for the Gold tier, users need to stake at least 5,000 HYPE tokens and maintain a monthly trading volume of at least 300,000 units.

After April 30, traders will no longer be able to join the Bronze tier. Instead, they will start at the Silver tier if they do not meet the requirements for the Gold tier.

Moreover, traders can only downgrade one tier per month. For instance, if a Gold tier trader does not maintain sufficient trading volume, they will be downgraded to the Silver tier the following month.

However, traders cannot upgrade more than one tier per month. For example, if a Silver tier trader reaches the required trading volume and staking amount for the Gold tier, they will upgrade the following month.

Complementary Tokens Count Double

It’s worth noting that for the purpose of calculating a trader’s monthly trading volume, learnability and liquidity tokens, which are used for trading fee discounts and can be claimed via staking, will count double.

This update also includes a revised fee structure, presenting Hyperliquid as a competitive option in terms of trading costs.

According to the exchange, even without staking, users will benefit from lower trading fees compared to centralized exchanges, despite the new system ensuring that the protocol generates greater revenue and HYPE gains more utility.

Moreover, spot trading volume will be counted double toward a trader’s fee tier, further encouraging traders to engage in more activities on the exchange.

This move is expected to drive higher protocol revenue, as seen with dApps on the Ethereum blockchain, and increase HYPE’s overall utility.

Whale Accumulation Fuels Buying Pressure

Meanwhile, large trades suggest that investors are quickly accumulating HYPE.

Crypto trader Alan noted this trend on X, stating, “It seems someone likes the new utility added to $HYPE this morning and decided they want $15m of it.”

This suggests that a large investor has made a substantial purchase, adding momentum to the ongoing rally in HYPE price.

Another prominent trader, Peggy.hl, highlighted the potential demand for the token as major traders looking for an on-chain Binance (BNB) alternative may begin accumulating HYPE.

This growing narrative around HYPE’s expanding use case appears to be fueling speculative interest in the asset.

However, with the new staking tiers