The HYPE token reached a new all-time high of $55.52 on September 9, marking an 18% surge from its September 8 opening price. This rise coincided with intensified competition among development teams for the launch of the USDH stablecoin.
USDH Stablecoin Competition
Following Hyperliquid’s announcement for the USDH launch on September 5, a competitive environment developed among teams for deploying the stablecoin. Five teams submitted proposals for the USDH ticker: Native Markets, Paxos, Frax Finance, Agora, and Sky. Native Markets stands out with full backing by dollar reserves and regulatory compliance.
VanEck Backs Agora Proposal
Jan van Eck, the founder of VanEck, publicly endorsed Agora’s proposal, praising Hyperliquid's technology and governance model. He stated, "We are impressed by your product, technology, and decentralized governance." Van Eck confirmed that VanEck has been holding HYPE tokens for several months and is interested in supporting the ecosystem.
Impact of Launch on Hyperliquid Revenue
Omar Kanji from Dragonfly Capital estimated that the USDH launch could generate an additional $220 million in annual revenue for HYPE holders assuming a 4% yield on the current $5.5 billion deposits. This shift would significantly impact the dynamics of stablecoins on Hyperliquid where USDC is currently used for settlement.
The developments surrounding HYPE and USDH highlight the growing interest from both institutional investors and the broader community. The competition for the stablecoin launch and backing from firms like VanEck hint at a promising future for Hyperliquid.
