While Bitcoin recently rose to over $113,000, Hyperliquid set a new all-time high at just under $55. Over the past 24 hours, HYPE is up around 9 percent.
The rally is being fueled by a competition among various stablecoin companies seeking to deliver the tokenized US dollar equivalent of the Perps exchange.
According to a Paxos proposal, 95 percent of the interest generated from the USDH stablecoin reserves would be used to buy back Hyperliquid’s native token.
Now, Sky is also joining the bidding war. Co-founder Rune Christensen explained: “Using Sky for USDH provides the Hyperliquid community with unbeatable benefits that no other stablecoin project can offer.”
Sky, formerly known as Maker, launched USDS and Dai, the fourth and fifth-largest stablecoins, respectively, with a combined value of approximately $12.5 billion.
Hyperliquid announced on its Discord on Friday that it was seeking pitches from “teams interested in launching a native stablecoin with the ticker USDH.” Sky’s proposal is the fifth offer.
Crypto infrastructure company Agora, co-founded by Nick van Eck, has also expressed interest. Even his father, Jan van Eck – CEO of the asset management giant – has already expressed his enthusiasm for Hyperliquid on X and advocated for Agora.
Hyperliquid validators will vote on this after the next network upgrade. Meanwhile, Nasdaq-listed crypto treasury firm Lion Group has announced that it intends to convert its Sui and Solana holdings into HYPE.
If the company were to sell the altcoins at current prices, it could buy more than 96,000 HYPE, in addition to its existing reserve of more than 128,000 HYPE.
It’s no wonder, then, that price predictions are continually being revised upwards in light of this bullish momentum. Arthur Hayes recently predicted a 126-fold increase in HYPE.