In a surprise surge, newcomer Hyperliquid momentarily eclipses Dogecoin, securing a spot among the elite cryptos with a record-breaking $67.5 milestone.

The cryptocurrency market witnessed a remarkable surge in Hyperliquid's value, as its token, $HYPE, achieved a string of unprecedented highs. This upward trajectory was largely fueled by intense media scrutiny and a significant influx of Exchange-Traded Fund (ETF) investments. As of May 29, $HYPE's price skyrocketed to a staggering $67.5, catapulting its market capitalization beyond the $17 billion mark. In doing so, it temporarily surpassed Dogecoin, claiming the ninth position in the ranking of cryptocurrencies by market capitalization and solidifying its place among the top 10.

At the time of writing, $HYPE had experienced a minor correction, trading at $64.5 and ranking tenth in terms of market size on CoinMarketCap. Nevertheless, its remarkable rally, which commenced in mid-May, has yielded a substantial 70% increase, with its value tripling since its February lows of $20. The catalyst for this parabolic ascent was largely attributed to Coinbase's partnership with USDC, coupled with the sustained momentum generated by robust ETF flows.

A recent development that caught the market off guard was the approval of the first Bitcoin perpetual futures contract by the U.S. Commodity Futures Trading Commission (CFTC) for Kalshi and Coinbase on Friday. This move has significant implications, as perpetual futures contracts enable users to access assets with limited capital. Hyperliquid's success has been closely tied to the growth of crypto perpetuals, which has since expanded to include commodities, real-world assets, pre-IPO contracts, and prediction markets. The perpetuals segment currently dominates the crypto market in terms of volume and open interest.

Hyperliquid's rapid ascent has positioned it as a formidable challenger to established players such as Binance, Coinbase, and traditional entities like Nasdaq. Some analysts have suggested that U.S. citizens were utilizing VPNs to access Hyperliquid's services, given the previously unclear regulatory landscape surrounding crypto perpetuals. However, the CFTC's approval of regulated perpetuals for Kalshi and Coinbase could potentially be perceived as a threat to Hyperliquid.

In response to these developments, Jake Chervinsky, CEO of the Hyperliquid Policy Center (HPC), downplayed concerns, viewing the CFTC's decision as a necessary stepping stone towards enabling DeFi perpetuals in the United States. It is worth noting that the current regulatory framework applies to centralized exchanges, but not decentralized exchanges (DEXes). Despite the introduction of new regulations and the unstaking of $HYPE tokens, market sentiment remains bullish. If the $60 support level continues to hold, the next potential targets for $HYPE could be $70 and $80.