PURR Surges Over $10, Analysts Bullish on Hyperliquid's Performance

Hyperliquid has outperformed during the bear market and could become one of the strongest performers in crypto during a bull market, with analysts also pointing to US access as another bullish catalyst.

What Will Drive HYPE?

Veteran trader Pentoshi said in an August 21 X post: "HYPE is the best-performing asset in the bear market," with the token up 33% over the past three months.

Hyperliquid Strategies Inc rose 26% over the same period.

In comparison, major cryptocurrencies Bitcoin, Ethereum, and XRP posted gains between 1% and 15% during the same timeframe.

According to Pentoshi, because Hyperliquid has direct exposure to crypto trading activity, HYPE could also become one of the strongest performers in a bull market.

If the crypto market turns bullish, trading volumes should rise, increasing fees generated by the platform.

The trader noted that 99% of these fees are used for HYPE buybacks and burns, linking more activity to a reduction in token supply.

Another catalyst is due in less than a week—Aqav2—which Pentoshi expects to generate approximately $500,000 to $600,000 in additional daily fees for HYPE burns.

He argued that increased on-chain adoption could double that figure to around $1 million per day.

Pentoshi stated that the token needs a clear breakout above its previous high, but he believes it is not far from entering price discovery, potentially supported by regulatory tailwinds.

How US Regulation Could Open Up Hyperliquid

Blockworks analyst Shaunda Devens said Friday that Hyperliquid could gain U.S. access, which would allow regulated companies to build on it while handling KYC, market surveillance, and customer protection.

This could provide access for compliant U.S. investors without forcing Hyperliquid's underlying permissionless protocol to become a traditional regulated exchange.

The Hyperliquid Policy Center is pushing regulators to view Hyperliquid as neutral financial infrastructure, with regulated companies responsible for compliance.

This approach gained momentum after President Donald Trump indicated that CFTC Chairman Michael Selig is working to bring HYPE to the U.S. legally and in full compliance.