- The Hyperliquid Improvement Proposal 3 (HIP-3) upgrade enables permissionless perpetual market creation.
- Jeff Yan’s transparency push boosts trust in on-chain trading.
- Hyperliquid (HYPE) price has held above $40, eyeing resistance near $43.82.
Hyperliquid (HYPE) has rallied sharply today, with HYPE jumping about 13% to $41.67 as markets reacted to a major protocol upgrade and a renewed debate over exchange transparency.
The HYPE token price surge pared a weekly decline and sent market-cap metrics higher as traders digested both the technical and fundamental implications of recent events.
Activation of HIP-3 Hyperliquid upgrade
The headline driver is the activation of Hyperliquid Improvement Proposal 3 (HIP-3) on Oct. 13, a protocol upgrade that allows permissionless creation of perpetual futures markets.
Under the new rules, builders who stake 500,000 HYPE can deploy perp DEXs on HyperCore, a shift that explicitly links token utility to platform growth.
That staking mechanism creates immediate on-chain demand for HYPE while lowering barriers for derivatives builders, potentially expanding the range of tradable products and liquidity on the protocol.
This upgrade also aligns with Hyperliquid’s broader positioning as a fully on-chain DEX integrated with HyperEVM.
By design, every trade, order, and liquidation is logged transparently on the chain. For traders and market makers, the promise of open verification reduces counterparty risk tied to opaque internal reporting.
Hyperliquid’s founder criticises CEX’s non-transparent liquidation
Hyperliquid’s founder, Jeff Yan, amplified HYPE’s value proposition by publicly criticising centralised exchanges for underreporting liquidation events.
Yan pointed to documentation showing Binance’s CEX liquidation streams only publish a single event per 1,000 milliseconds, which can mask multiple simultaneous liquidations.
Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations
Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
In the wake of a $19 billion liquidation cascade over Oct. 10–11, those comments hit home for many market participants.
The contrast between Hyperliquid’s on-chain record and alleged CEX underreporting has become a tradeable narrative.
Institutional and retail traders who prioritise verifiable execution may reallocate activity and capital toward venues where every liquidation is public and auditable.
That trust shift, if it persists, could support sustained volume on Hyperliquid.
HYPE token price analysis
Technically, HYPE has bounced off a longer-term support near the 200-day simple moving average, around $36.17, which attracted dip buying.
Momentum indicators look mixed: RSI sits close to oversold territory at about 38.8, suggesting room to run, while MACD readings remain bearish.
While Hyperliquid’s price has today cleared a short-term hurdle, meaningful overhead resistance exists, and bears have not yet capitulated.
According to some analysts like CoinLore , the token needs to hold above $39.80 to target the first resistance at $43.82, with higher resistances at $49.45 and $57.30.
On the downside, a failure of $39.87 could open the path toward $35.03, where longer-term support may be tested.
Hyperliquid price forecast and key levels to watch
In the near term, bullish momentum looks plausible if adoption follows the upgrade and if the transparency narrative continues to redirect volume into Hyperliquid.
A sustained hold above $40 is critical; it would validate the recent rebound and increase the chance of testing $43.82 as the next objective.
Failure to defend that zone, however, could see HYPE retest lower support near $35.
Traders should watch for concrete adoption signals over the next 48 hours: new perp deployments, on-chain staking activity, and consistent trade volumes on freshly minted markets.
The traders should also monitor how the broader market digests macro news, since systemic events can quickly overwhelm idiosyncratic catalysts.
If builders and traders embrace HIP-3, HYPE’s utility and demand could meaningfully outpace speculative momentum alone.
