Hyperliquid(HYPE) price prediction: Native Markets wins the battle for USD stablecoin, Arthur Hayes bullish up to $5000

Arthur Hayes, a senior executive in the encryption industry, recently made an extremely optimistic prediction regarding the HYPE Token of the Hyperliquid platform, suggesting that the token could reach a price of 5000 USD. This is based on his earlier prediction of achieving a 126-fold return within three years. This bold prediction comes as Native Markets successfully acquired the USDH stablecoin token code for Hyperliquid after defeating heavyweight competitors including Paxos and Ethena. Technical Analysis shows that HYPE is trading near 54 USD after completing a major Elliott Wave cycle, with indicators suggesting a possible pullback to the 25-50 USD support level before resuming its upward trend. The platform's dominant position in the Perptual Futures market and its 1.2 billion USD annual revenue provide fundamental support for Hayes' ambitious long-term goals.

Native Markets Victory Promotes Stablecoin Integration Plan

After several weeks of intense competition, Native Markets emerged victorious in the governance vote for Hyperliquid's USDH stablecoin. This decision follows the validators' commitment, with prediction markets indicating that the team is clearly favored over established competitors.

Ethena withdrew from the competition on Thursday due to community concerns about the demand for non-native infrastructure. This exit eliminated a major competitor that initially appeared to be in a favorable position for collaboration. Paxos, despite revising its proposal midweek, remains competitive. The now irrelevant updated Version 2 included deep integration with PayPal and Venmo, zero-cost deposit and withdrawal channels, and a $20 million incentive program.

Paxos has also committed to using all USDH revenue for the growth of Hyperliquid until it reaches a TVL of 1 billion USD. Additionally, the community has noted that Native Markets won due to its close integration with the Hyperliquid ecosystem. Cash and U.S. Treasury reserves will be managed off-chain by BlackRock, while tokenized assets will utilize the Bridge infrastructure of Superstate and Stripe. The team has pledged to allocate all reserve earnings to Hyperliquid's assistance fund and broader ecosystem development. Support from veterans at Uniswap Labs, Paradigm, and Polychain further enhances the credibility among validators.

Elliott Wave Completion Indicates Significant Pullback Risk

(Source: TradingView)

The chart structure of HYPE indicates that a major Elliott Wave 1 cycle has completed around the current level of $54. The terminal wedge formation shows corrective characteristics in each sub-wave, suggesting that the current bullish momentum may be exhausting. The technical convergence points to a significant pullback targeting the $25 region. This level represents multiple support factors, including undeveloped volume nodes, the macro 0.382 Fibonacci retracement level, and the alignment of the speed fan golden pocket. The ascending channel containing recent price action is approaching the upper boundary resistance.

HYPE's positioning around $53.42 indicates that while it maintains bullish momentum characteristics throughout the rise, a top action may still occur. The identification of fair value gaps provides substantial buying interest areas during any corrective move. These market inefficiencies often act as price magnets during high volatility periods, with rapid moves leaving gaps that need to be filled. Alternative wave counting scenarios involving nested 1-2 structures appear less likely given the current market conditions. However, a decisive breakout above $61 could shift the bias towards a sustained bullish interpretation rather than a pullback expectation.

FOMC Volatility Creates Strategic Entry Opportunities

Short-term analysis focuses on the Federal Reserve's FOMC meeting on September 16-17, with expectations that interest rate cuts could catalyze broader market volatility. The consensus centers around a 25 basis point cut or potentially more aggressive monetary policy actions. Immediate resistance clusters around the 0.618 Fibonacci level near $56.22, with stronger resistance in the $57.50 region. These levels represent profit-taking areas for short-term traders and potential reversal points for a broader pullback. The support structure identifies the key level at $52.74, with deeper support around $49.88. The alignment with the $50 buying level, based on Fibonacci retracement, creates a high probability setup for continuation and pullback scenarios.

Hyperliquid Financial Performance and Market Position

Hyperliquid not only excels in technological innovation but also demonstrates outstanding financial performance. According to a report by research firm ASXN, Hyperliquid successfully recorded a net income of 1.2 billion USD by 2024. This figure is even slightly higher than the 1.13 billion USD net income recorded by NASDAQ. The majority of Hyperliquid's revenue is reinvested into repurchasing HYPE Tokens, with a proportion reaching 98%. This strategy creates continuous buying pressure on the Tokens, helping to push its price to a historical high of over 57 USD. The platform dominates the Perptual Futures market, with a monthly trading volume of nearly 400 billion USD, and in August, the fee income reached 106 million USD, accounting for approximately 70% of the decentralized perpetual market.

HYPE Token Future Outlook and Investment Potential

With proactive strategies and an innovative focus, Hyperliquid and its HYPE Token show significant growth potential. If the current trend continues and is supported by the company's ongoing buybacks, a single HYPE Token reaching a price of 5000 USD is not impossible. Investors and market analysts should closely monitor the dynamics occurring within Hyperliquid. The platform has proven its ability to compete and generate substantial profits in a tight market, which may be a strong indicator of potential future growth for the HYPE Token price. Hayes' 5000 USD prediction assumes that the stablecoin market will explosively expand to over 10 trillion USD, driving demand for speculative trading. Despite facing recent technical resistance, Hyperliquid's 60% market share in the Perptual Futures market and 1.2 billion USD in annual revenue still support a long-term bullish scenario.

Conclusion

Arthur Hayes' price prediction of $5000 for the HYPE Token marks a new era in cryptocurrency investment, where tokens supported by innovative platforms and solid financial performance are becoming highly attractive. Investors seeking potentially massive returns may find appealing options in HYPE. However, investors should be aware that cryptocurrencies belong to a high-risk asset class, and any investment decision should be based on independent research. The future development of the Hyperliquid ecosystem, particularly the integration process of the USDH stablecoin, as well as broader cryptocurrency market trends, will significantly impact the price movement of the HYPE Token.