- The Hyperliquid Improvement Proposal 3 (HIP-3) upgrade enables permissionless creation of perpetual markets.
- Founder Jeff Yan’s transparency push increases confidence in on-chain trading.
- Hyperliquid (HYPE) has stayed above $40, facing resistance near $43.82.
Hyperliquid (HYPE) surged sharply today, rising about 13% to $41.67 as markets reacted to a major protocol upgrade and renewed debate over exchange transparency.
The HYPE token’s gain offset a weekly decline and lifted market metrics as traders parsed both the technical and fundamental implications of these developments.
HIP-3 upgrade activates permissionless perpetual markets
The main catalyst was the activation of Hyperliquid Improvement Proposal 3 (HIP-3) on October 13, a protocol upgrade that enables permissionless creation of perpetual futures markets.
Under the new rules, builders who stake 500,000 HYPE can deploy perp DEXs on HyperCore—a shift that directly ties token utility to platform growth.
This staking mechanism creates immediate on-chain demand for HYPE while lowering barriers for derivatives builders, potentially expanding the range of tradable products and liquidity on the protocol.
The upgrade also aligns with Hyperliquid’s broader positioning as a fully on-chain DEX integrated with HyperEVM.
Every trade, order and liquidation is now logged transparently on-chain. For traders and market makers, the promise of open verification reduces counterparty risk associated with opaque internal reporting.
Founder calls out opaque CEX liquidations
Hyperliquid’s founder, Jeff Yan, amplified HYPE’s value proposition by publicly criticizing centralized exchanges for underreporting liquidation events.
Yan highlighted evidence that Binance’s CEX liquidation feeds publish only a single event per 1,000 milliseconds, potentially masking multiple simultaneous liquidations.
Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations
Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
In the wake of a $19 billion liquidation cascade on October 10–11, these comments resonated with many market participants.
The contrast between Hyperliquid’s on-chain record and alleged CEX underreporting has become a tradable narrative.
Institutional and retail traders who prioritize verifiable execution may shift activity and capital to marketplaces where every liquidation is public and auditable.
If this trust shift continues, it could support sustained volume on Hyperliquid.
HYPE token price analysis
Technically, HYPE bounced off long-term support near the 200-day simple moving average, around $36.17, attracting dip buyers.
Momentum indicators are mixed: the RSI sits around 38.8, close to oversold and suggesting room to run, while MACD readings remain bearish.
Although Hyperliquid cleared a short-term hurdle today, meaningful overhead resistance remains and bears have not yet capitulated.
Some analysts note that HYPE needs to hold above $39.80 to target the first resistance at $43.82, with further resistance levels at $49.45 and $57.30.
On the downside, a failure below $39.87 could open the path toward $35.03, where long-term support would be tested.
Price outlook and key levels to watch
In the near term, upward momentum looks plausible if adoption follows the upgrade and the transparency narrative continues to redirect volume to Hyperliquid.
Sustained trading above $40 is critical; it would validate the recent rally and increase the likelihood of testing $43.82 as the next target.
If HYPE fails to defend that zone, it may retest support near $35.
Traders should watch for concrete adoption signals over the next 48 hours: new perp deployments, on-chain staking activity, and steady trading volume on newly minted markets.
They should also monitor how broader markets digest macro news, as systemic events can quickly overwhelm idiosyncratic catalysts.
If builders and traders embrace HIP-3, HYPE’s utility and demand could meaningfully outpace speculative momentum alone.