Hyperliquid supports 24/7 derivatives trading

On May 23, 2025, the decentralized exchange Hyperliquid, operating on its own layer 1 blockchain, sent official comments to the US Commodity Futures Trading Commission (CFTC), advocating 24/7 derivatives trading. This is reported in a post by Hyperliquid Labs on the X platform.

Perpetual futures contracts are a type of derivatives that allow traders to speculate on the price of a crypto asset without owning it. Unlike traditional futures, they do not have an expiration date and are backed by the market price through a funding mechanism where payments are exchanged between long and short positions.

Impact on the price of the HYPE cryptocurrency

The CFTC’s approval of 24/7 derivatives trading and Hyperliquid’s support for this process could positively impact the price of the HYPE token, the native token of the Hyperliquid blockchain, for several reasons:

• Increasing Legitimacy and Trust: Hyperliquid’s active engagement with the CFTC and support for regulatory initiatives demonstrates the project’s commitment to working within the law. This can increase the confidence of investors, especially institutional ones, which often leads to increased demand for the token. For example, following Hyperliquid’s filing of comments with the CFTC on May 23, 2025, the price of HYPE has already increased by 15% in 24 hours, reflecting a positive market reaction.
• Increasing activity on the platform: The approval of 24/7 derivatives trading could attract more traders to Hyperliquid, given that the platform already leads the decentralized perpetual futures segment with a market share of about 70%. Increasing trading volumes (trading volume reached $175 billion per month in May 2025) and open interest ($8.9 billion) usually correlate with an increase in the price of the token, as HYPE is used to pay fees, staking and governance.
• Potential for New Products: The CFTC’s approval could pave the way for new financial products on Hyperliquid, such as perpetual futures, which are already in demand. This will strengthen the platform’s position in DeFi, which will likely increase the value of HYPE as a key element of the ecosystem.
• Market Sentiment: Positive news about regulatory support often triggers FOMO (fear of missing out) among retail investors. Considering that HYPE is already up 85% in the last month (April to May 2025) and 500% from April lows, further positive developments could strengthen this momentum.

Possible risks

However, there are also risks that may limit price growth:

1. If the CFTC introduces strict rules, it could discourage some DeFi users who value anonymity and minimal regulation.
2. Market volatility: HYPE has already seen wild swings, such as 18% growth following major trades, but has also experienced capital outflows (such as $140 million due to manipulation of the JELLY token).

Cryptocurrency market context

The crypto derivatives market has recently experienced a surge of activity: new product launches, acquisitions and regulatory changes. Coinbase CEO Brian Armstrong recently said that the exchange will continue to look for M&A opportunities following its acquisition of Deribit, one of the largest crypto derivatives trading platforms.

There is also a revival in Europe: the Gemini exchange received permission to expand trading in crypto derivatives, and DeFi platform Synthetix plans to reclaim its crypto options platform Derive.

CryptoInside Opinion

In my opinion, Hyperliquid’s support for 24/7 trading could accelerate the legalization of perpetual futures in the US, which would strengthen DeFi’s position in the global market. However, regulators should carefully assess the risks associated with cryptocurrency volatility to protect traders. The CFTC’s move toward more flexible rules is a step forward, but the balance between innovation and safety remains key.

News highlights:

• Hyperliquid has written to the CFTC in support of 24/7 derivatives trading.
• The CFTC may soon approve perpetual crypto futures for trading in the US.
• The crypto derivatives market is actively developing: Coinbase acquired Deribit, Gemini is expanding in Europe, Synthetix is returning Derive.

Disclaimer: The information in this article is for informational purposes only and does not constitute legal or investment advice. CryptoInside is not responsible for any losses associated with the use of this information.