Hyperliquid users are no stranger to crypto’s volatility, but a significant portion of liquidations on the decentralized exchange (DEX) were tied to gold, silver, and copper on Thursday.
The dynamic shows how traders are becoming increasingly exposed to movements in real-world assets (RWAs) on the platform, following an upgrade in October allowing third-party developers to list trading pairs for assets including commodities and equities.
In total, around 3,200 Hyperliquid users had been liquidated while trading futures tied to precious metals, which are offered by TradeXYZ, a Hyperliquid-based DEX for tokenized assets. Third-party developers must stake HYPE tokens to offer the markets.
“The demand for silver has been insane on Hyperliquid,” he told Decrypt. “I’d like to see sustained demand in less volatile environments, but I’d also like to see Hyperliquid continue to capture volatility wherever the hot ball of money goes next.”
Hyperliquid's platform features a token-burning mechanism, where protocol fees collected in the form of HYPE are burned automatically. Burning tokens permanently removes them from circulation, potentially boosting a digital asset’s scarcity.
“HYPE’s run-up is definitely a reflection of increased demand for RWAs,” Ruskin said, noting that “on-chain activity [is] picking up for the first time in a bit.”
