Hyperliquid, a decentralized perpetuals exchange built on its proprietary Layer 1 blockchain, has emerged as a focal point in the ongoing crypto derivatives boom.

Hyperliquid Labs recently submitted two formal comment letters to the U.S. Commodity Futures Trading Commission (CFTC), addressing the agency's requests for public input on perpetual derivatives and 24/7 crypto trading.

The decentralized perpetuals exchange Hyperliquid has become a focal point in the ongoing crypto derivatives boom, seeing record open interest and trading volumes on its platform.

Hyperliquid sees record open interest

The exchange recently hit a new record in open interest (OI) with over $9.4 billion in active positions on Tuesday, May 23. This represents a 53% increase from its earlier peak this month.

The surge coincided with Bitcoin's rally to a new all-time high above the $111,000 price level, driving up demand for crypto derivatives.

According to data from CoinGlass, Hyperliquid's Bitcoin contracts alone contributed over $4.2 billion, more than 40% of the platform's total OI. Ether contracts followed with $1.3 billion, while the native HYPE token placed third with around $748 million in active positions.

Notably, trader "moonpig" took center stage with a $1 billion BTC long position using 40x leverage, which he exited as BTC cooled down.

Trading volumes and daily revenue on the DEX soared to $11.5 billion and $3.4 million, respectively, according to DefiLlama data.

The platform's native token HYPE has also benefited from the surge in activity on Hyperliquid, reaching new all-time highs above the $37 price level.

We featured the token in our list of the best altcoins to watch in 2025:

Regulatory participation underscores Hyperliquid's DeFi commitment

Hyperliquid Labs recently submitted two formal comment letters to the U.S. Commodity Futures Trading Commission (CFTC), addressing the agency's requests for public input on perpetual derivatives and 24/7 crypto trading.

In its May 23 announcement on X, Hyperliquid praised the CFTC's proactive stance, asserting that regulatory clarity is crucial for the maturation of decentralized markets.

The platform highlighted its unique capabilities, including continuous liquidity, real-time collateral management, and automated liquidations, which it believes align with the foundational principles of decentralized finance.

Hyperliquid emphasized how its on-chain architecture supports transparency, composability, and user protection, key tenets in a sector often scrutinized for opacity and risk.

In its submission, Hyperliquid stated: "Supporting DeFi in the US with open dialogue and a clear regulatory framework is an opportunity to ensure the US remains a leader in financial innovation while robustly protecting users."

HYPE token surges to new highs

Riding the wave of increased trading activity and positive sentiment surrounding its regulatory outreach, Hyperliquid's native token, HYPE, surged to a new all-time high above $37. The token gained over 12% in the past 24 hours and has climbed more than 87% over the last month.

However, the rally has not been without setbacks for some traders. Blockchain analytics firm SpotOnChain reported that a major whale shorted 1.875 million HYPE tokens at 5x leverage. As prices soared, the position was closed at a loss of $23.52 million, wiping out most of the $30.5 million USDC initially used to sustain the trade. The trader's remaining balance now stands just below $7 million.

With rising institutional interest in perpetual contracts and clearer regulatory pathways on the horizon, Hyperliquid appears well-positioned to maintain its upward trajectory in the evolving DeFi landscape.