Hyperliquid’s HYPE token has experienced an explosive price surge, reaching a record high of $37 on Friday, May 23rd. This growth follows a trend that began on April 4th, when the token bottomed at just $9. Since then, HYPE has witnessed an impressive 285% increase in value, establishing its market capitalization at $11.2 billion and a fully diluted valuation of $35.7 billion. HYPE’s surge is driven by a confluence of factors. Increasing DeFi activity, including high open interest and fees within the Hyperliquid network, has been a major driver. Data from DeFi Llama shows that its seven-day volume jumped by 51%, reaching a staggering $67.7 billion – making it the most active player in decentralized finance compared to PancakeSwap and Uniswap’s transactions of $40.2 billion and $25.26 billion, respectively. HYPE has also broken new ground in perpetual futures trading, handling over $1.53 trillion worth of such trades, significantly exceeding Jupiter’s $309 billion. This growth is creating a ripple effect: The increase in open interest and fees within the network have led to record-high weekly fees, reaching a staggering $17 million, up from previous weeks. Notably, this surge aligns with the broader crypto bull run, which has seen Bitcoin’s price reach new highs, further contributing to gains across various altcoins. Perpetual futures, a unique derivative trading instrument allowing traders to leverage positions and amplify returns, have gained significant traction in the cryptocurrency industry. This is evidenced by the recent acquisition of Deribit by Coinbase, a move aimed at bolstering its presence in the sector. **Technical analysts are optimistic about HYPE’s future price trajectory.** A cup-and-handle pattern on the eight-hour chart suggests further gains. This pattern identifies potential support and resistance levels within the token’s price action, with an estimated target price of $47 – a 35% increase from current levels. This could push HYPE’s market cap to nearly $15 billion.