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Hyperliquid HIP-3 Open Interest Hits $1.4B as Tokenized Commodities Surge

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Hyperliquid HIP-3 Open Interest Hits $1.4B as Tokenized Commodities Surge

Hyperliquid’s HIP-3 aggregated open interest smashed through records to hit $1.74 billion on Sunday, marking a 25% vertical climb from $1.39 billion just last week.

The surge is not being driven by Bitcoin or Ethereum, but by a massive capital rotation into tokenized commodities via Trade.xyz, the ecosystem’s dominant interface.

While the broader crypto market chugs sideways and traditional commodity markets face volatility, traders are aggressively bidding RWA (real-world asset) perp markets, with WTI crude oil volumes now flipping major crypto pairs.

  • Open Interest: Aggregated HIP-3 markets hit a record $1.74B, with Trade.xyz commanding 91.3% market share.
  • Key Driver: Tokenized commodities like WTI Crude and Silver are outpacing crypto native assets in volume.
  • Market Signal: Traders are using DeFi rails for 24/7 exposure to Middle East geopolitical risks, bypassing legacy market hours.

Data Deep Dive: Oil Flips Ethereum on Hyperliquid

The numbers confirm a structural shift in how traders are using Hyperliquid. Trade.xyz—built by Hyperliquid’s tokenization arm Hyperunit, now holds $1.58 billion in open interest.

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That is 91.3% of the total HIP-3 market. This is no longer a crypto-derivative story; it is a traditional asset story running on crypto rails.

On Monday, Trade.xyz reported 24-hour volumes peaking at $5.6 billion with over 45,300 unique daily traders. The composition of this volume is striking.

Source: Loris.tools

WTI crude oil generated $1.27 billion in 24-hour volume, followed by Brent oil at $1.04 billion and silver at $1.01 billion. For perspective, these RWA volumes effectively flipped Ethereum trading activity on the platform during peak hours.

Traders are voting with their liquidity: the HYPE token has rallied over 50% year-to-date, decoupling from Bitcoin’s 15% drawdown over the same period.

The driver is geopolitical, not technological. Escalating tensions in the Middle East have injected massive volatility into energy markets, creating an urgent demand for continuous price discovery.

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Traditional brokerage accounts close on Friday evenings and do not reopen until Sunday night or Monday morning. Hyperliquid’s HIP-3 markets never close.

Source: Tradingview

When news breaks over the weekend, legacy traders are frozen. On Hyperliquid, you can hedge immediately.

This 24/7 capability is solving a genuine market friction for tokenized commodities. The platform is capturing flows that would usually sit trapped in closed order books. As new derivatives platforms enter the market such as OneBullEx launching AI-native futures, the competition for this 24/7 liquidity layer is intensifying, but Hyperliquid currently has the first-mover massive volume advantage.

What to Watch Next

The growth of Trade.xyz validates the thesis that DeFi infrastructure can service traditional finance flows. However, the regulatory optics are heating up. As lawmakers scrutinize tokenization, the permissionless nature of HIP-3 listings could attract attention from the CFTC if US volumes are significant. Until then, the trend is clear: liquidity is moving on-chain.

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Traders should also monitor the rollout of HIP-4, which is currently in testnet. This upgrade introduces permissionless prediction markets, potentially expanding the ecosystem beyond commodities and into event contracts. If HIP-4 replicates the adoption curve of HIP-3, the HYPE token could see another repricing event as the protocol diversifies its fee generation further.

Discover: The best new crypto in the world

The post Hyperliquid HIP-3 Open Interest Hits $1.4B as Tokenized Commodities Surge appeared first on Cryptonews.

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Crypto World

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?