HYPE Surges 17% After Hyperliquid Grants Coinbase Rights to USDH Assets

HYPE surged to a yearly high of $46.93, jumping 17% within 24 hours after news emerged that Coinbase would use $HYPE to activate AQAv2.

Key Highlights

• HYPE climbed 17% to $46.93 after Coinbase committed to staking the token for AQAv2 activation.
• Hyperliquid will replace $USDH with USDC to consolidate liquidity and share reserve yield revenue with the Layer-1 network.
• Hyper Foundation will provide grants to HIP-3 and HIP-1 developers to support migration efforts over the coming months.

Transition Toward USDC Integration

HYPE, the native token of decentralized exchange and Layer-1 protocol Hyperliquid, surged to $46.93 on Friday — its highest level this year.

The rally followed an announcement from Coinbase that it would use $HYPE to activate AQAv2.

The sharp move reversed a previous downtrend that had pushed the token from around $44 on May 9 to below $39 by the morning of May 14.

At the time of writing, the token had slightly retraced to $45.68 but still remained up more than 17% over the past 24 hours.

As a result of the rally, HYPE’s market capitalization rose above $10 billion, approaching the $11 billion mark.

Hyperliquid Moves From USDH to USDC

In a statement posted on X, Hyperliquid explained that Native Markets — creator of the network’s first integrated stablecoin — agreed to terms granting Coinbase the right to acquire the assets of the $USDH brand.

The company added:

“With Coinbase acting as treasury manager and sharing the majority of reserve yield revenue with the protocol, USDC will become the most aligned stablecoin on Hyperliquid. As a result, canonical outcome markets (HIP-4) will use USDC as the quoted asset in a future network upgrade.”

Liquidity Fragmentation Was a Key Concern

Hyperliquid explained that the decision followed feedback from users and developers who argued that liquidity fragmentation was harming the user experience.

The company stated that while USDH markets will gradually be phased out, they remain fully operational for now.

The stablecoin itself remains “fully backed,” and users will continue to have access to free conversions into USDC and fiat currencies during the transition period.

Hyper Foundation to Support Migration

Additionally, Hyper Foundation will provide grants to eligible HIP-3 deployers, HIP-1 deployers, and teams that integrated USDH.

The foundation will also support teams throughout the migration process over the coming months.

Community Reaction Was Mostly Positive

Reaction on social media was largely positive.

One user, Charlie.hl, praised the move as a strategic decision that strengthens liquidity.

However, some users expressed surprise over the sudden shift away from Hyperliquid’s native USDH asset.

See also: "Strategy Makes a New $1.5 Billion Announcement: Did the Company Sell Bitcoin?"

#Hyperliquid (HYPE) #USDH #USDC

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