JPMorgan names reasons for Hyperliquid’s popularity. What drives the interest

A major investment bank noted that the largest derivatives exchange in the crypto market has attracted the attention of traditional investors due to limitations on conventional exchanges.

A significant influx of new users who were previously not involved with digital assets is being observed in the crypto market, according to a report by JPMorgan. They noted that traditional investors and traders are increasingly turning to platforms such as the decentralized exchange (DEX) Hyperliquid.

This is due to the need for market participants to use trading tools at any time of the day. It is also driven by volatility in oil prices caused by the military conflict between the United States, Israel, and Iran.

“Earlier this month, when the war with Iran began, oil trading volume on Hyperliquid surged as traders on CME [Chicago Mercantile Exchange] were unable to react to strikes on Iranian infrastructure,” Coindesk quoted the bank’s report.

Against this backdrop, analysts noted that daily trading volume in the oil/USDC pair on Hyperliquid peaked in mid-March at around $1.7 billion, while open interest rose to approximately $300 million. This activity also coincided with a rise in the price of the platform’s native token HYPE — since early March, its price has increased by more than 25%, allowing it to enter the top 10 cryptocurrencies by market capitalization.

Unlike traditional exchanges, DEXs do not have fixed trading hours, allowing clients to trade 24/7 from anywhere in the world. In addition, JPMorgan highlighted Hyperliquid specifically as a platform specializing in perpetual futures.

These are the factors JPMorgan identified as key drivers attracting institutional clients seeking more efficient ways to build trading strategies.

In recent months, major players in traditional finance have also been planning or already developing their own solutions to create more efficient trading tools. For example, CME plans to launch 24/7 trading of crypto futures and options by the end of May. Meanwhile, the operator of the New York Stock Exchange (NYSE) is developing its own version of a platform for tokenized assets.

See also: "SEC recognizes most cryptocurrencies as commodities"

#Hyperliquid (HYPE) #JPMorgan

Share: