HYPE holds momentum in its ascending channel with a $62–$65 target as the breakout retest remains intact. USDH buybacks and a $600M institutional conversion fuel a bullish outlook, reinforcing HYPE’s upward momentum. The crypto market is once again turning its attention to Hyperliquid and its native token, HYPE, after the price trend showed a consistent direction. Analyst Lingrid believes HYPE is still moving smoothly within an ascending channel pattern. After breaking through the last consolidation, momentum will remain as long as the retest breakout holds. The price target in the $62 to $65 range is now the main focus. Source: Lingrid on TradingView However, if the price re-enters the previous range, it could signal trend exhaustion. For now, Lingrid sees the potential for continued upside towards the mid-$60s as still dominant. At the time of writing, HYPE was trading at about $54.82, up 19.53% in the past 7 days, with a daily trading volume of around $422.15 million. Stablecoin Proposal Could Redefine Hyperliquid’s Liquidity Path On the other hand, fundamental factors are also strengthening the bullish narrative. Data compiled by CoinMarketCap highlights Paxos’ proposal for the USDH stablecoin on September 7th. The mechanism is quite interesting: 95% of USDH’s interest income will be used to buy back HYPE on the market. Such buybacks typically reduce the circulating supply and, historically, have often been seen as a positive boost for tokenomics. Not only that, but USDH is also being prepared to integrate with HyperEVM and even traditional finance through Paxos’s more than 70 institutional partners. This means the potential for increased liquidity in the Hyperliquid ecosystem could be even greater. And the story isn’t over yet, as on September 14th, Hyperliquid validators will vote. They will determine whether USDH will become the primary stablecoin on the network, reducing reliance on USDC. If adopted, USDH could potentially absorb $5.5 billion in liquidity and generate approximately $220 million annually for HYPE holders. Furthermore, the CNF previously highlighted the strategic move in late August when BitGo officially supported Hyperliquid. This custodial support paves the way for institutions to store and access HyperEVM with high-level security. This sentiment certainly boosts the confidence of large investors. Institutional Move Underscores Growing Trust in HYPE The story became even more interesting when Lion Group Holding (Nasdaq: LGHL) announced on September 8 that it would convert $600 million in reserves in SOL and SUI to HYPE. The reason is that Hyperliquid now controls approximately 70% of the decentralized derivatives market. This massive transfer of funds is often seen as a signal that institutional investors aren’t just jumping on the bandwagon, but genuinely view HYPE as having a dominant position in the sector. Looking back, the Hyperliquid ecosystem has also demonstrated exceptional performance. At the end of June, the platform recorded over $1.5 trillion in perpetual futures volume in a year, with a new record growth in May. From an economic perspective, over 92% of revenue is used to buy back HYPE tokens. This mechanism clearly provides layered support for prices while strengthening liquidity.