Hyperliquid Reaches New Heights as Teams Vie for USDH Stablecoin Ticker

Record-Breaking Performance Amid Stablecoin Development Race

Hyperliquid, the decentralized exchange operating on its dedicated layer-1 network, has achieved a significant milestone by reaching a new all-time high of $55.04 on Tuesday morning. Though it subsequently settled at $53.70, the token maintained impressive gains of 4% daily and 23.4% weekly. This remarkable performance coincides with a flurry of proposals from established teams competing to secure the coveted USDH ticker for a new “Hyperliquid-aligned” stablecoin.

The competition for creating this “Hyperliquid-first” stablecoin has attracted substantial interest across the cryptocurrency ecosystem, with teams having until Wednesday to submit their proposals through Discord. Validator voting is scheduled to commence at the end of the week, determining which project will ultimately secure the ticker. To date, 21 proposals have been submitted—some legitimate and others more humorous in nature—including notable entries from established stablecoin players such as Paxos, Frax Finance, and Agora. This level of participation from industry heavyweights underscores the growing significance of Hyperliquid in the broader cryptocurrency landscape.

The Rise of Hyperliquid as a Trading Powerhouse

Hyperliquid has established itself as a premier destination for cryptocurrency traders seeking substantial leveraged positions. The platform gained particular notoriety in March when a crypto whale established a Bitcoin short position valued at approximately $521 million with 40x leverage—a move so substantial it prompted a coordinated group effort to attempt to liquidate the position. This incident highlighted Hyperliquid’s capacity to facilitate high-stakes trading activities that attract significant attention within cryptocurrency circles.

While various stablecoins already operate on the Hyperliquid network, the USDH ticker has been specifically restricted from use until now. The Hyperliquid Foundation has clarified via Discord that the eventual USDH stablecoin will not receive special privileges, and existing stablecoins will continue to function on the network. Nevertheless, the ticker has generated considerable interest from established stablecoin developers, enhancing the network’s visibility and contributing to its price momentum.

“By anchoring to a native stablecoin, Hyperliquid reduces its dependence on external assets like USDC or USDT, while tightening the integration between trading, settlement, and liquidity within its derivatives platform,” explained Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet. “In many ways, USDH is less about competing directly with Tether, or USDT, or USDC and more about redefining how stablecoins align with the core economics of individual protocols.”

Ecosystem-Centric Proposals Gaining Traction

Many of the submitted proposals emphasize alignment with Hyperliquid’s ecosystem, suggesting models designed to generate value that flows back into the platform. Native Markets’ proposal, for instance, outlines a plan to share reserve proceeds with the Hyperliquid Assistance Fund. Similarly, Agora has committed to directing 100% of its revenue toward supporting the Hyperliquid ecosystem. These ecosystem-centric approaches reflect a growing understanding of the importance of creating synergistic relationships between stablecoins and their host networks.

This development coincides with Hyperliquid surpassing its previous all-time high of $47.73 established in August 2025. The token’s 23.4% weekly increase culminated in a peak of $55 before settling at $53.70. According to CoinGecko data, Hyperliquid now boasts a market capitalization of $14.5 billion, securing its position as the 14th largest cryptocurrency globally.

Ryan Lee, Chief Analyst at Bitget, shared his insights with Decrypt: “Hyperliquid has set a new ATH at $55.85, coming off as one of the major altcoin sensations in the market because of its unique value propositions in the derivatives market. Despite growing competition, Hyperliquid’s HYPE is considered a way to buy into one of the most promising DEX platforms in the industry. In a market that is gradually getting saturated by whale presence, loyal community backing has ultimately translated into a valuation boom for HYPE.”

Controversy and Competition in the USDH Race

The stablecoin proposal process has not been without controversy. Shortly after the announcement of the USDH contest, Hyperstable—an existing stablecoin protocol on the Hyperliquid network—voiced concerns about potential favoritism. They alleged that certain teams, particularly Native Markets, had received advance notice about the competition, creating what they described as an “unfair” advantage. Hyperstable claimed they had previously attempted to secure the USDH ticker but were informed it was unavailable, raising questions about the transparency of the selection process.

However, some community members have countered this narrative, suggesting that regulatory developments, particularly the signing of the GENIUS Act into law, have fundamentally altered the landscape for stablecoin issuance. They argue that Hyperliquid didn’t change its approach arbitrarily but rather adapted to evolving regulatory requirements that now make the USDH ticker viable for appropriate projects.

Despite these disagreements, the competition for the USDH ticker has intensified as the Sunday validator vote approaches. The high level of interest reflects the strategic importance that market participants place on securing a branded stablecoin within one of cryptocurrency’s fastest-growing trading ecosystems.

Strategic Implications for Hyperliquid’s Future

The introduction of a native stablecoin represents a strategic evolution for Hyperliquid, potentially strengthening its position in the competitive landscape of decentralized exchanges. As Ryan Lee explained: “This stablecoin is already being pitched as a major rival to USDC, and its issuance will help concentrate liquidity that can further drive HYPE price. Ultimately, the industry is leaning into the growth potential of HYPE and the confidence it can rank among the top 5 cryptocurrencies in the long term.”

The development of a Hyperliquid-aligned stablecoin could significantly enhance the platform’s liquidity infrastructure while reducing dependence on external stablecoin providers. This increased self-sufficiency may position Hyperliquid to better weather market volatility and regulatory challenges that might affect other stablecoins. Additionally, the revenue-sharing mechanisms proposed by several applicants could create a virtuous cycle that strengthens the entire Hyperliquid ecosystem.

As validator voting approaches, market observers are closely watching not only which proposal will succeed but also how the implementation of USDH might affect Hyperliquid’s trajectory in the broader cryptocurrency market. With its price already reaching unprecedented heights and major financial players expressing interest in its ecosystem, Hyperliquid appears positioned for continued growth as it expands its decentralized finance capabilities through native stablecoin integration.

The outcome of this competition may have far-reaching implications not only for Hyperliquid but for the evolving relationship between decentralized exchanges and stablecoins across the cryptocurrency landscape. As traditional finance and decentralized platforms increasingly converge, innovations like the USDH stablecoin could provide a blueprint for how blockchain networks can create integrated financial ecosystems that balance innovation with stability.