- Hyperliquid’s real upside may come from cheap onchain leverage, not just HYPE ETF demand.
- Capital Flows says HYPE could reach $350 if cheaper funding rates attract TradFi leverage demand on-chain.
Hyperliquid’s HYPE token has entered price discovery after reaching a new record near $64, with traders now looking beyond ETF inflows and short-term momentum and into whether it can attract traditional finance capital by offering cheaper, deeper, and more flexible access to leverage across major markets.
Analyst Capital Flows argues that the market underestimates this factor. In his view, investors focus too heavily on HYPE ETFs, while the larger opportunity sits in funding rates, foreign exchange, and interest-rate markets. These markets dominate global capital flows, and any platform that can offer competitive funding could pull larger balance-sheet activity onchain.
The $350 target reflects that broader HYPE price prediction. From a price near $64, HYPE would need a gain of more than five times to reach that level. The analyst’s case rests on a move from crypto-native speculation toward real demand from institutions seeking efficient leverage. If that shift happens, ETF demand may look small compared to daily capital flows tied to rates and FX.
Hyperliquid already has several drivers supporting the current rally. HYPE-focused ETFs from 21Shares and Bitwise reportedly drew $72.38 million in inflows during the week ending May 22, while HYPE continued trading close to its all-time high.
The protocol’s token model has also strengthened market attention. Hyperliquid directs most trading fees toward HYPE buybacks through its Assistance Fund, which creates a steady demand channel when trading activity stays strong. Hyperliquid protocol redirects 97% to 99% of fees into HYPE buybacks, while recent data showed the fund holding tens of millions of tokens.
Funding Rates Become the Bigger HYPE Catalyst
Analyst Capital Flows outlined funding rates as the overlooked bridge between crypto and traditional finance. In simple terms, funding rates show the cost of leverage on a platform. Large traders, hedge funds, and market makers constantly compare that cost across venues. If Hyperliquid offers cheaper and deeper leverage, capital may follow the better rate.
This matters more for HYPE than many short-term ETF narratives. Traditional finance firms already manage enormous exposure across interest rates, dollar liquidity, and FX hedges. Hyperliquid does not need to replace those markets to benefit. It only needs to capture a small share of activity from users seeking faster settlement, tighter execution, and lower leverage costs.
Regulation remains the main barrier. Large institutions usually need clearer rules before they move material capital into onchain venues. However, the analyst argues that demand can build quickly once legal and operational constraints ease. In that setup, Hyperliquid could act less like a standard crypto exchange and more like an on-chain venue for global leverage.
HYPE’s technical chart also supports why traders now discuss higher targets. The token recently broke above its former swing high near $59.45 and reached a record close to $64.48. That breakout placed HYPE above its 50-day, 100-day, and 200-day exponential moving averages, which keeps the broader trend tilted upward.
Fibonacci extension levels now guide the next technical zones. The 127.2% extension sits near $70.04, while the 161.8% extension stands around $83.51. A move through those levels could keep HYPE in price discovery, especially if open interest and spot demand continue rising together.
Meanwhile, RSI has moved close to 75, showing stretched buying pressure, while MACD still points to firm upward momentum. That mix often signals strong trend momentum, but it can also invite sharp pullbacks when late buyers chase extended candles.
The key support now sits near $59.45, the former resistance area. If buyers defend that level, traders may keep targeting the $70 to $83 zone. A deeper move below $59.45 could bring $50 back into view. The $350 HYPE price prediction needs funding-rate demand, sustained buybacks, and TradFi capital moving onchain at scale.
Recently, Arthur Hayes named HYPE, ZEC, and NEAR his “holy trinity” coins, saying the three altcoins have outperformed Bitcoin during the latest market surge.
