The native token of Hyperliquid (HYPE) has surged amid a general downturn in the crypto market. Several experts are now viewing the asset as a capital preservation tool, as noted by CoinDesk analyst Omkar Godbole.
While Bitcoin and Ethereum have seen price declines, Hyperliquid markets have reached record levels. Open interest surpassed $1 billion, and daily trading volume hit $4.8 billion, the publication's specialist emphasized.
This surge in activity is linked to the HIP-3 initiative. The update allows for the creation of trading pairs for cryptocurrencies, stocks, and gold, provided that 500,000 HYPE tokens are staked.
Over the past week, HYPE's price has increased by 41%. In contrast, Bitcoin's price dropped by more than 11% during the same period, with many altcoins experiencing even steeper declines.
Source: CoinGecko.
Godbole noted that HYPE is being referred to as a "defensive bet." The token is compared to stocks of utility or pharmaceutical companies that investors choose to preserve their funds during bearish trends in the stock market.
However, the expert cautioned about potential risks. The status of a safe haven may be temporary. If the market crash intensifies, investor confidence could wane, leading to decreased trading activity across all platforms. In this scenario, HYPE's growth is likely to stall.
At the time of writing, the token is trading at $30.55.
15-minute chart of HYPE/USDT on Bitget. Source: TradingView.
Recall that in December 2025, an analyst known as Jordi warned about the risks of slashing and losses in the new Hyperliquid markets.