Hyperliquid (HYPE) Price Rally: On-Chain Liquidity Breakthrough and DeFi Market Revaluation Projected for 2025

The dramatic rise in Hyperliquid's native token, HYPE, has ignited considerable discussion among both market observers and investors. Although recent short-term fluctuations—such as the bot-fueled jump to $98 on the Lighter exchange—have raised doubts , the larger story centers on Hyperliquid's advancements in on-chain liquidity and its anticipated influence on the 2025 DeFi market revaluation. With the rollout of the BorrowLendingProtocol (BLP) on its Hypercore testnet, Hyperliquid is not just boosting capital efficiency but also establishing itself as a central figure in the ongoing transformation of decentralized finance.

On-Chain Liquidity Breakthrough: How BLP Elevates Capital Efficiency

The BLP from Hyperliquid marks a significant evolution in DeFi liquidity management. In contrast to conventional lending protocols that depend on separate liquidity pools,

such as and PURR directly on the platform. This approach lessens the need for isolated reserves, fostering shared pools that maximize asset efficiency for users. For example, to implement margin strategies without leaving the platform—potentially increasing platform engagement by as much as 30% compared to similar protocols.

The BLP's architecture also tackles a major challenge in DeFi: inefficient liquidity routing across protocols.

directly into its core system, Hyperliquid streamlines the user experience, providing zero gas costs and nearly instant transaction settlements. These benefits are especially attractive to institutional players seeking robust and scalable capital solutions. , Hyperliquid's total value locked (TVL) has climbed to $2.15 billion, marking a 19.78% rise over the previous month and highlighting the protocol's increasing traction.

DeFi Market Revaluation: Hyperliquid's Tactical Advantage

The DeFi industry is experiencing a significant revaluation in 2025, propelled by greater institutional involvement and clearer regulatory frameworks. While leading blockchains like

and are seeing reductions in TVL, Hyperliquid's emphasis on derivatives and perpetual contracts has enabled it to gain ground. with open interest at $7.2 billion, putting it on par with major centralized exchanges and showcasing its ability to connect decentralized systems with institutional capital.

A major driver of this revaluation is Hyperliquid's robust token buyback initiative,

in HYPE tokens. This contraction in supply, together with , has tightened token availability and bolstered market trust. Institutional interest is further demonstrated by 21Shares' HYPE ETF application and the SEC's accelerated approval process for crypto ETFs . BlackRock's ETF (IBIT), now overseeing $50 billion in assets, signals a broader movement of institutional participation in digital assets , a trend that Hyperliquid is well positioned to benefit from.

Technical Outlook and Potential Risks

Despite strong underlying fundamentals, technical signals urge caution.

and the risk of a death cross between the 50-day and 200-day moving averages could indicate a sharper downturn if HYPE falls below the $35.5 support threshold. Nevertheless, Hyperliquid's strategic alliances—such as the HAUS partnership with Felix—and help to alleviate some of these risks by strengthening institutional confidence.

Summary

Hyperliquid's BLP and innovative liquidity frameworks are reshaping DeFi's value proposition, creating a seamless link between decentralized technology and institutional investment. While the wider market is experiencing TVL contractions, Hyperliquid's rising TVL, assertive buyback strategy, and regulatory compliance set it apart as a frontrunner in the 2025 revaluation. For investors, the central issue remains whether the protocol can maintain its momentum in the face of technical challenges and broader economic uncertainties.