TradingKey - Hyperliquid surges over 20% to stand above $70, with potential to hit new record highs.

On August 20 Eastern Time, the native token of decentralized derivatives trading platform Hyperliquid, HYPE, surged 26% in a single day, leading the cryptocurrency market today and forcefully breaking through the $70 mark to reach a high near $74, approaching its all-time high set in July this year.

Against the backdrop of the broader crypto market being boosted by the U.S. Treasury expanding its bond buyback program and the SEC passing crypto asset regulations, the HYPE token demonstrated excess returns far outperforming the market. This was mainly driven by major tailwinds following the shift in the U.S. regulatory framework, with market rumors suggesting U.S. interest in introducing and granting regulatory compliance to the Hyperliquid ecosystem.

According to a report by Hyperliquid News today, U.S. President Trump claimed that the SEC Chairman is pushing for Hyperliquid's entry into the U.S. market. This move would undoubtedly resolve the biggest pain point for decentralized derivatives platforms, which previously could not legally serve U.S. institutional entities due to geoblocking. Commenting on this, Binance founder Changpeng Zhao stated that "policy cannot apply to just a single company or project; it benefits the entire industry."

Previously, the Hyperliquid platform used most of its trading fee revenue directly for buybacks and burns as well as rewards for HYPE holders. As network-wide trading volume exploded on August 20, a powerful virtuous cycle of "surge in trading volume ➔ increased burns and buybacks" was formed, implying an exponential amplification of token buyback momentum.

Currently, the price of HYPE is only about 5% away from its all-time high of $76, meaning it could break through this barrier and set a new record high at any time. In the short term, if the Bitcoin price breaks out to $80,000, it will push the market into a state of FOMO, and HYPE will benefit from massive trading volume. Naturally, if regulatory compliance in the U.S. market makes concrete progress, HYPE is expected to mount a run toward new record highs above $80.

HYPE price chart, Source: TradingView

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