a16z increases position in HYPE: Why is capital betting on the next mainstream crypto ecosystem?

The January market can be described as a tale of two extremes: on one side, gold breaking through the historic high of $5,500 per ounce, and on the other, Bitcoin experiencing intense fluctuations between $80,000 and $90,000.

However, just as market attention was drawn to macro volatility and Bitcoin trends, on-chain data monitoring shows that addresses associated with well-known venture capital firm a16z are continuously accumulating Hyperliquid’s native token HYPE.

01 Capital Movements

Smart money in the crypto market has never stopped seeking opportunities. Despite recent increased overall market volatility, top-tier venture capital firms represented by a16z seem to have identified their next strategic focus.

On-chain activity indicates that addresses linked to a16z have been consistently accumulating HYPE tokens recently, aligning with HYPE’s strong recent market performance.

Capital choices are often based on in-depth fundamental research. a16z’s investment logic may be rooted in confidence in the decentralized derivatives sector, especially in Hyperliquid’s unique model of “high-performance L1 + native decentralized exchange.”

02 HYPE and Hyperliquid Ecosystem Analysis

HYPE is the native functional token of Hyperliquid Protocol. Hyperliquid itself is a high-performance Layer 1 blockchain optimized from the ground up, with the vision of building a fully on-chain open financial system.

The flagship application of this ecosystem is a fully on-chain order book perpetual contract exchange, where all orders, trades, cancellations, and liquidations occur transparently on-chain with latency below 1 second.

The recent core engine driving HYPE’s value discovery is its HIP-3 framework. This is a permissionless program allowing third-party developers to create and operate perpetual contract markets by staking HYPE.

The Growth Miracle of HIP-3

The growth data of HIP-3 is astonishing. Its open interest surged from approximately $260 million to nearly $790 million within a month, continuously setting new records.

This growth is largely attributed to a surge in commodity futures trading, especially perpetual contracts for gold and silver, attracting traders seeking on-chain exposure to traditional safe-haven assets.

This move has also enabled Hyperliquid to successfully differentiate itself from other major decentralized perpetual platforms focused on cryptocurrencies.

03 Market Data and Price Performance

The market votes with funds, and HYPE has recently outperformed the broader market significantly. Here is a summary of key indicators based on data from the Gate platform as of January 30, 2026:

Despite fluctuations in the past 24 hours, HYPE has demonstrated strong momentum over longer periods. Its 7-day increase exceeds 34%, contrasting sharply with Bitcoin and Ethereum’s performance during the same period.

It is also noteworthy that mainstream trading platforms are increasingly recognizing HYPE. Besides being traded on Gate, Kraken has confirmed it will soon list HYPE, further enhancing its liquidity and market exposure.

04 Technical Architecture and Competitive Advantages

Hyperliquid’s technical positioning is key to attracting capital. It is not an ordinary DApp built on existing blockchains but a dedicated Layer 1 designed from scratch for financial applications.

This means its order book is fully on-chain, eliminating custodial risks and trust assumptions associated with centralized order matching engines.

This architecture provides an experience similar to centralized exchanges—low latency (under 1 second), high throughput—while maintaining the transparency and censorship resistance of decentralized finance.

Hyperliquid co-founder Jeff Yan has stated that the bid-ask spreads of some contracts are already comparable to or even better than those of major centralized exchanges.

05 Future Outlook and Ecosystem Development

Hyperliquid’s roadmap focuses on expanding its role as a multi-asset on-chain derivatives hub. The success of the HIP-3 framework is just the beginning; it demonstrates that the community and developers can build diverse markets on its foundation.

The platform’s cumulative trading volume has exceeded $25 billion, indicating strong product-market fit.

Looking ahead, Hyperliquid plans to support more asset classes and optimize its underlying infrastructure to reduce trading costs, increase throughput, and attract more institutional and retail traders.

06 Gate Platform HYPE Trading Guide

For investors interested in HYPE, choosing a platform with sufficient liquidity and a good trading experience is crucial. Gate Exchange is one of the main venues for trading HYPE, offering deep order books and a competitive trading environment.

On the Gate platform, HYPE trading pairs are primarily HYPE/USDT, allowing users to buy and sell directly with USDT.

Gate’s Alpha points system also offers additional value for active traders. Users can earn points by holding assets and trading in Alpha-selected zones, gaining opportunities to participate in token generation events (TGE) and airdrops of promising early projects. For core assets like HYPE, staying engaged in the ecosystem and participating in activities may yield returns beyond simple trading.

HYPE Future Outlook

When gold prices soar, Tether profits by holding physical gold, with unrealized gains exceeding $5 billion. Meanwhile, the “Air Force Commander” in the crypto market, caught in long and short positions, suffered a brutal exit, with weekly liquidations reaching $400 million.

As the spotlight shines on the epic volatility of gold and Bitcoin, the open interest on Hyperliquid’s chain quietly approaches $800 million.

On-chain data shows that whales have been continuously buying HYPE at low prices, successfully doubling their principal with unrealized gains of up to $12 million. All of this may just be the beginning of the story for Hyperliquid—a high-performance Layer 1 aiming to reconstruct the on-chain financial order.