Hyperliquid (HYPE) Price Rebounds 10% After This Announcement by Binance

The crypto market had a rough start today, with prices falling. Red candles lit up charts across the board, and Hyperliquid (HYPE) was no exception. HYPE dropped over 13% from its 24-hour high. The market-wide crash rattled traders, but then, Binance stepped in.

On May 30, the world’s largest crypto exchange made a big announcement. Binance said it will launch a USD-marginalised perpetual contract for Hyperliquid (HYPE). This means HYPE can now be traded on Binance Futures with up to 75x leverage. 

Just hours after the news dropped, HYPE rebounded.

What is Hyperliquid?

Hyperliquid is not just another altcoin. It’s a Layer-1 decentralised blockchain platform. It’s built specifically for decentralised finance. It aims to improve speed, scalability, and cost-efficiency for applications built on the blockchain.

The project has gained traction, but it still hasn’t been listed on Binance Spot. Binance clarified that Futures listings do not mean a token will be listed on Spot. So, while HYPE is now tradable on Futures, it’s not available for direct buying or selling on the main Binance exchange, at least not yet.

The timing of the Binance announcement was critical. HYPE had just plunged to a low of $30.82. Within hours, it shot back up to around $34.

That’s a 10% rebound in a very bearish environment, as trading volume also spiked. Over the last 24 hours, volume rose by 34%. This showed that traders are paying attention, as HYPE is hyping up again.

Market Reaction and Volatility

The announcement acted like a jolt of electricity in a bearish market. After the 13% drop, HYPE’s sudden 10% rebound was one of the strongest movements among major altcoins today.

That kind of price swing in a single day shows just how volatile the crypto market is — and how quickly it can react to big news. The 24-hour price range for HYPE was wide. It went from a low of $30.82 to a high of $34.54.

That’s a lot of movement in a short time.

Data from Coinglass shows growing confidence among derivatives traders. HYPE futures open interest rose by 2.31% in just four hours. It reached $1.26 billion. This suggests traders are betting on HYPE again. The Futures announcement seems to have turned the tide, at least temporarily. 

The broader market remains fragile. The current downturn is linked to monthly options expiry and the release of US PCE inflation data. These macro factors have a strong grip on market sentiment.

What Does the Perpetual Contract Mean?

Binance is adding the HYPEUSDT perpetual contract to its platform so traders can long or short HYPE using Tether (USDT).

The contract allows up to 75x leverage, which is extremely high. That’s part of Binance’s plan to “expand trading choices and enhance users’ trading experience,” according to their statement.

Binance will also add HYPE to Futures Copy Trading within 24 hours of the launch. This means users can now copy the trades of top-performing HYPE traders automatically.

The Risk Factor: Leverage and Liquidations

While the launch of a 75x leverage product might seem exciting, it comes with high risk. Just ask James Wynn, a well-known Hyperliquid trader. This week, he suffered one of the largest liquidations in recent memory.

Wynn lost more than $99 million in a single week. His latest long position of 949 Bitcoin was liquidated when BTC fell below $105,000 during early Asian trading hours.

That’s the kind of risk leveraged trading carries because even top traders aren’t immune to sudden price drops. With the new HYPE perpetuals on Binance, more retail traders may jump in. But they need to be cautious.

What’s Next for HYPE?

Binance’s decision to list HYPE on Futures, even without a spot listing, sends a signal. It shows the exchange sees growing interest in Hyperliquid. HYPE’s inclusion on Futures can boost its visibility and mainstream exposure and open the door for more institutional-level trading. 

The short-term outlook is bullish but cautious. Yes, the price rebounded 10%, volume is up, and interest is rising. But the broader market is still shaky. If macroeconomic pressure continues, all gains could be erased quickly.

On the other hand, if traders stay engaged, the Binance Futures listing could create a new wave of demand for HYPE. This might even push Binance to consider a Spot listing, although there’s no official word on that yet.

Final Thoughts

HYPE is back in the headlines. After a steep fall, the Binance announcement gave it a much-needed boost. 

As always in crypto, traders must balance opportunity with caution. The new Futures contract offers traders more ways to engage with HYPE but the 75x leverage is one to be cautious of.

The next few days will be crucial. Will HYPE hold its gains? Or will the market drag it down again? Binance just gave HYPE a shot in the arm. But how long it lasts depends on market momentum and whether Hyperliquid can live up to the hype.