While Bitcoin and gold have lost ground this week due to profit-taking, Hyperliquid‘s HYPE token has shown remarkable strength. Over the past 24 hours, the HYPE price has risen by more than 7%, setting the project apart from the broader crypto market. This increase follows a major corporate development: a merger valued at 888 million dollars, resulting in the creation of Hyperliquid Strategies Inc. (HSI).

$888 million merger boosts confidence in Hyperliquid

HYPE‘s recent surge follows the merger between Sonnet Bio Therapeutics and the private company Rorschach I LLC, a deal that led to the formation of Hyperliquid Strategies Inc. The new company will manage a digital asset treasury, with a significant portion of its capital allocated to acquiring additional HYPE tokens.

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), HSI‘s digital asset holdings are currently estimated at around $583 million in HYPE. In addition, HSI plans to raise $1 billion through the issuance of 160 million new shares. Part of this capital will be used to purchase more HYPE tokens — a move analysts view as a bullish signal for the token‘s future performance.

Crypto market under pressure, but HYPE shows resilience

According to data from CoinMarketCap, HYPE has gained 7.25% in the past 24 hours and is currently trading around $37.24. Meanwhile, Bitcoin (BTC) has fallen by about 2% this week, trading around $108,800, while gold has dropped by over 5% after a strong upward trend — marking its sharpest weekly decline in weeks.

Major DeFi tokens have also faced a challenging period, with outflows from U.S. BTC and ETH ETFs exceeding $120 million. Despite this, overall trading activity in the market remains high, suggesting that investors are reallocating funds toward projects with stronger growth potential, including Hyperliquid.

HYPE gains growing institutional recognition

Institutional investors appear increasingly active within the DeFi sector, driven by the search for yield and diversification beyond traditional markets. However, recent figures show that inflows into Bitcoin and Ethereum ETFs have slowed: U.S. BTC ETFs recorded outflows of $101 million, while ETH ETFs lost around $18 million. The creation of Hyperliquid Strategies Inc. enhances HYPE‘s institutional appeal. The platform combines the efficiency of centralised exchanges with the transparency of blockchain technology and enables perpetual futures trading where users retain custody of their tokens.

Beyond the merger, Hyperliquid has also received technical and operational validation from the broader DeFi ecosystem. In early October, MetaMask announced native support for Hyperliquid swaps, allowing users to trade HYPE directly from their wallets — a major step forward for usability and liquidity.

Moreover, the Hyperliquid platform operates with an innovative perpetual futures model that allows traders to speculate with leverage without transferring ownership of their tokens. This combination of efficiency, transparency, and control makes Hyperliquid attractive to both retail and institutional traders.

The combination of institutional support, technological innovation, and increasing liquidity makes HYPE one of the most talked-about projects in the DeFi space today.

Outlook: what does this mean for investors?

While HYPE‘s recent surge is partly driven by speculation surrounding the merger, analysts also point to structural growth factors. The creation of Hyperliquid Strategies Inc., the integration with MetaMask, and rising institutional interest all strengthen the project‘s fundamental position. The long-term success of HSI will depend on the execution of its treasury strategy and its ability to maintain investor confidence.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research and seek professional guidance before making investment decisions.