Crypto World
RedStone deploys price oracle to bolster Stellar DeFi security
RedStone has launched a price oracle on Stellar after a recent oracle exploit.
Summary
- Oracle provider RedStone has deployed a new price oracle on the Stellar network.
- The move follows a $10m oracle vulnerability attack, highlighting the need for more robust data feeds.
- Stellar DeFi activity and tokenized asset plans are expected to rely increasingly on on-chain price data as lending and trading volumes grow.
Oracle provider RedStone has rolled out a dedicated price oracle on the Stellar network, aiming to support the chain’s expanding decentralized finance and tokenization ecosystem with more secure and reliable market data. The deployment comes in the wake of a $10m exploit tied to oracle vulnerabilities, an incident that reinforced how critical accurate pricing is for lending, collateralized positions, and automated liquidations. As Stellar pushes deeper into areas such as on-chain lending, tokenized real-world assets, and payment-focused DeFi applications, developers need resilient price feeds for assets referenced across smart contracts. RedStone’s integration is designed to give builders a modular source of off-chain and cross-chain prices while adding redundancy to the network’s existing tooling.
By embedding its oracle framework into Stellar’s infrastructure, RedStone intends to offer developers flexible options for how and when price data is delivered to contracts, including support for custom feeds and aggregation methods. That flexibility matters for protocols that may want different update frequencies or asset baskets, such as money markets, synthetic asset platforms, and tokenized securities issuers. The provider’s entry also signals growing third-party interest in Stellar as it evolves from a cross-border payments chain into a broader environment for tokenized assets and programmable finance. For the network, attracting a specialized oracle partner helps close a key tooling gap that has historically limited the complexity of DeFi applications that could safely launch on Stellar.
Strengthening Stellar’s DeFi stack
The RedStone deployment fits a broader industry trend in which chains and protocols are rethinking their reliance on single-source or lightly secured price feeds after a series of exploits. In recent years, attackers have repeatedly targeted thin liquidity and delayed oracle updates to manipulate prices, drain lending pools, or trigger bad debt across DeFi systems. By adding more robust oracle options, Stellar-based projects can diversify data sources and design more conservative liquidation and collateral mechanisms. This, in turn, can make it easier for institutional users and payment firms to consider launching products on the network, as they evaluate technical and risk controls alongside regulatory frameworks such as MiCA.
For developers, the presence of a new oracle provider may unlock designs that were previously too risky, including more sophisticated lending markets, structured products, and multi-asset vaults. Combined with growing interest in tokenized assets and payment rails from platforms comparable to Coinbase and from traditional players that operate similarly to Visa in the fiat world, the move suggests Stellar is positioning itself for a more competitive role in the multi-chain DeFi landscape. If RedStone’s integration delivers the promised reliability and resilience, it could become a core piece of the network’s DeFi stack, helping to prevent a repeat of past oracle issues while enabling a new wave of applications built on more trustworthy pricing infrastructure.
Key takeaways:
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Derivatives and onchain data show a lack of bullish conviction, as 43% of Bitcoin holders remain at a loss despite recent price gains.
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Surging AI energy demand is squeezing miner profits to record lows, forcing major listed firms to offload BTC and pivot to computing.
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Traders face a psychological hurdle at $76,000, the average cost basis for major corporate holders like Strategy.
Bitcoin (BTC) surged to a four-week high on Wednesday, potentially clearing a path for a recovery toward the $78,700 monthly close recorded in January. Despite a 22% rally from the $60,000 local bottom on Feb. 6, several onchain and derivatives metrics suggest bears remain comfortable.
Demand for downside protection through Bitcoin options continues to dominate the market.
Put (sell) options recently traded at a 10% premium relative to equivalent call (buy) instruments. In neutral market conditions, this indicator typically ranges between -6% and 6%, a level last observed in mid-January when Bitcoin traded near $95,000.
Professional traders appear to fear further downside, while demand for bullish BTC futures remains stagnant; the annualized premium, or basis rate, currently sits below the neutral 5% threshold.
The weakness in Bitcoin derivatives reflects the month-long consolidation following the 32% crash during the first week of February. However, the lack of conviction from bulls even as prices move above $73,000 suggests a deeper hesitation. This cautious mood likely comes from the fact that a significant portion of holders are still stuck in the red.
Currently, 43% of the supply is held at a loss based on the price coins last moved, according to Glassnode data. This share of holders sustaining losses spiked from 30% when Bitcoin traded at $90,000 in late January. Traders fear that investors sitting on these losses will gradually exit their positions as the price recovers, creating persistent overhead sell pressure that could cap further gains.
Another source of concern stems from the Bitcoin mining sector, which has faced significant pressure due to the exponential growth in artificial intelligence demand. Rising energy costs and declining demand for the Bitcoin blockchain registry have pushed miner profitability toward all-time lows. Several major listed mining firms have pivoted toward AI computing, offloading their Bitcoin holdings in the process.
The Bitcoin Hashprice index, which measures the expected daily value of one terahash per second of hashing power, plummeted to $30 on Tuesday, down from $39 three months ago. Investors fear that miners may transition into net sellers after a prolonged period of accumulation.
Mining companies that previously maintained a Bitcoin strategic reserve are now reportedly eyeing more profitable opportunities in alternative high-performance computing sectors.
Related: MARA exec pushes back on Bitcoin treasury sell-off narrative
Strategy’s $76,000 cost basis could be the turning point for Bitcoin momentum
Strategy (MSTR US) remains the primary example of a Bitcoin-centered balance sheet strategy. After purchasing 720,737 BTC since its initial deployment in August 2020, the company faced scrutiny as Bitcoin dropped below its average acquisition price of approximately $76,000.
Other publicly traded entities, including Metaplanet (3350 JP) and Twenty One Capital (XXI US), have encountered similar valuation challenges during the current bear market conditions.
While Strategy does not face imminent liquidation risks or a lack of cash for interest payments on yield-bearing assets like STRC, bears recognize that prices above the Bitcoin cost basis incentivize stock issuance without diluting current holders.
Essentially, market participants looking to suppress the price have strong incentives to keep Bitcoin pegged below $76,000. Therefore, a recovery toward $78,700 may take longer than expected, though momentum could shift in favor of bulls once that key level is breached.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
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This article was originally published as Bitcoin Bulls Rally as Momentum Surges, Still Tough to Top $78K on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
- PAC Fairshake secured early victories in the 2026 U.S. congressional primaries by backing several candidates in key states.
- Jessica Steinmann won nearly 70 percent of the vote in Texas’ 8th District with financial support from Fairshake.
- Fairshake spent 1.5 million dollars opposing Democratic Representative Al Green, forcing his race into a runoff.
- Republican candidates Chris Gober and Trever Nehls also won their Texas primaries with Fairshake support.
- The PAC reported 193 million dollars in cash on hand at the start of the 2026 campaign season.
Crypto-backed political spending shaped several early outcomes in the 2026 U.S. congressional primaries. Fairshake supported multiple candidates in Texas, Arkansas, and North Carolina. The results now position the group to expand its allies after November.
PAC Fairshake Backs Primary Winners in Texas and Beyond
PAC Fairshake supported Jessica Steinmann in Texas’s 8th District, and she won nearly 70% of the vote. State results confirmed her dominant finish in the Republican primary. Federal Election Commission filings show the PAC spent more than $750,000 on her race.
Steinmann previously worked as a Department of Justice lawyer, and President Donald Trump backed her candidacy. Her campaign website states she supports digital assets and blockchain innovation. Fairshake said voters responded to her economic message and focus on emerging technology.
In Texas’s 10th District, Fairshake supported Republican Chris Gober, and he secured more than 50% in a crowded field. Gober founded Lex Politica and focuses on political litigation and government investigations. In the 22nd District, Trever Nehls won 76% of the vote after receiving Fairshake support.
Nehls is an Army veteran and a Trump loyalist, and he seeks to replace his identical twin brother. Both Texas districts lean Republican, and general election prospects appear favorable. Fairshake also supported Representative French Hill in Arkansas, and he won 77% of his primary vote.
Hill chairs the House Financial Services Committee and leads crypto legislation efforts in the House. Fairshake spent more than $400,000 on advertising in his race. In North Carolina, Republican Representative Tim Moore won 83% of the vote with PAC backing.
Texas Runoff Shapes Key Test for Fairshake Strategy
Fairshake also targeted longtime Texas Democrat Al Green in a newly redrawn district. The PAC spent $1.5 million on ads opposing Green. Green trailed pro-blockchain Democrat Christian Menefee, yet neither candidate secured more than half the vote.
Both candidates will now compete in a runoff election. Green has voted against crypto legislation and holds an “F” rating from Stand With Crypto. Menefee supports blockchain policy, and he advanced alongside Green into the next round.
Fairshake stated that its advertisements focus on political messages rather than digital asset policy. The group does not coordinate directly with candidate campaigns. It reported $193 million in cash on hand at the start of the campaign season.
The PAC and its affiliates rank among the largest political spenders in the country. During the 2024 cycle, Fairshake supported 53 candidates who now serve in Congress. The latest primary victories add to that list as the 2026 general election approaches.
South Korea’s stock market suffered one of its fastest declines in history this week, with the Kospi falling about 20% in two trading days, as geopolitical tensions have, for the moment, shattered what might be termed a speculative bubble in popular AI-related names.
The rapid decline followed months of aggressive buying by retail investors that had sent the Kospi — dominated by Samsung and SK Hynix — higher by nearly 180% in about 10 months.
The timing has drawn attention to activity in Korea’s crypto markets, where trading volumes have begun to climb again.
South Korea is one of the few markets where retail traders play a major role in both equities and digital assets. Analysts have long observed that local traders often rotate between speculative markets, rather than exiting risk assets entirely.
In November, a CoinDesk analysis described what was dubbed the “Great Korean Pivot,” noting trading volumes on domestic crypto exchanges fell as retail traders moved into technology stocks tied to artificial intelligence.
That equity rally, however, has now stalled or reversed.
When one market cools, South Korean trader attention frequently shifts to another. That’s perhaps benefiting crypto, which has seen bitcoin climb 7% in the past 24 hours to above $73,000. Ether (ETH), solana (SOL) and XRP (XRP) are up similar amounts.
Retail signals remain moderate
While crypto trading volumes have moved higher, for the moment, at least, activity does not yet resemble the frenzied speculative surges seen in earlier Korean market cycles.
One key metric is the Kimchi premium, which measures the difference between bitcoin prices on Korean exchanges and global markets. When domestic demand surges, bitcoin often trades at a noticeable premium in Korean won markets.
That premium currently remains modest, with data from CryptoQuant showing the Korea Premium Index near 1%, well below levels seen during previous retail-driven rallies. There is, however, a modest uptick in retail sentiment as the Kimchi premium had dipped into negative territory in mid-January.
Crypto exchange Kraken has secured approval for a Federal Reserve master account, advancing digital asset integration into the U.S. banking system. The approval grants Kraken Financial direct access to the central bank’s core payment infrastructure. The decision also positions the firm at the center of a pilot program for proposed skinny master accounts.
Kraken Secures Federal Reserve Master Account Access
Kraken Financial obtained approval for a Federal Reserve master account after applying to the Kansas City Fed in 2020. As a result, the firm can access the central bank’s payment rails used by banks and credit unions. The development marks a structural shift in how crypto firms connect to the U.S. financial system.
With this approval, Kraken Financial can settle transactions through Fedwire and other core systems. Consequently, the firm can move funds faster and manage liquidity with greater precision. The access supports large clients and professional traders who require direct settlement infrastructure.
However, the Federal Reserve will limit the scope of services available to Kraken Financial. The firm cannot earn interest on reserves held at the central bank. In addition, it cannot access lending facilities or operate as a full-service commercial bank.
The approval arrives as Kraken prepares for a potential U.S. public offering. The company has already submitted a confidential draft S-1 filing. Therefore, the master account strengthens its institutional profile ahead of a possible listing.
Pro-crypto lawmakers have acknowledged the development as a milestone for digital assets. Senator Cynthia Lummis described it as a watershed moment for the sector. The approval also signals that regulators may consider structured integration models for crypto firms.
Pilot Program Advances Skinny Master Account Framework
The Federal Reserve structured Kraken’s approval as a pilot for proposed skinny master accounts. Governor Chris Waller introduced this framework to expand payment access without extending full banking privileges. The central bank aims to finalize the initiative before the end of the year.
Under this structure, approved entities can hold reserves and settle transactions through the central bank. However, they cannot lend, access the discount window, or provide traditional commercial banking services. Therefore, the framework separates payment access from broader banking authority.
Banking groups have raised concerns about regulatory consistency and oversight standards. The American Bankers Association warned that some applicants lack extensive supervisory histories. It also emphasized the need for uniform safety and soundness requirements across all participants.
Despite these concerns, the pilot reflects an effort to balance innovation and financial stability. The Federal Reserve continues to evaluate how digital asset firms fit within existing rules. At the same time, policymakers seek to maintain safeguards within the banking system.
The approval also demonstrates coordination among multiple regulators. Officials have indicated that agencies are working together on digital asset oversight. As a result, the pilot may influence how other applications progress in the coming months.
Ripple and Circle Stand to Benefit From Regulatory Shift
Other crypto firms have pursued similar access to the Federal Reserve system. Ripple, Anchorage, and Custodia Bank have each filed applications for master accounts. Custodia submitted its request around the same time Kraken filed its application.
The proposed skinny master accounts could benefit stablecoin issuers such as Ripple and Circle. These firms rely on secure reserve management and efficient settlement processes. Therefore, direct access to central bank payment rails could strengthen their operational models.
The Office of the Comptroller of the Currency has also expanded its engagement with crypto firms. The OCC has conditionally approved national trust charters for Ripple, Crypto.com, Circle, and Paxos. In addition, it recently broadened Trust Bank’s services within the federal framework.
Federal Reserve Governor Michelle Bowman has addressed coordination efforts tied to digital asset legislation. She stated that regulators are working to implement the GENIUS Act alongside other agencies. The initiative aims to clarify digital asset treatment within the banking system.
Overall, Kraken’s approval establishes a precedent within the evolving regulatory landscape. The pilot program offers a controlled pathway for payment access without full banking powers. Consequently, the decision may shape how digital asset firms integrate with the U.S. financial system in the years ahead.
This partnership aims to leverage Solana’s speed and Western Union’s extensive network to facilitate seamless cross-border money transfers.
Crossmint has announced a partnership with Western Union to support the rollout of USDPT, a U.S. dollar-denominated stablecoin, on the Solana blockchain. According to the Crossmint website, USDPT aims to provide a seamless, fast, and cost-effective way to transfer funds globally.
Western Union will integrate its Digital Asset Network with Crossmint, allowing the conversion of digital dollars into local currency through more than 360,000 collection points worldwide.
Malcolm Clarke, Western Union’s Vice President of Digital Assets, emphasized the strategic value of the partnership, stating, “Working with partners like Crossmint helps to seamlessly connect global wallets and digital platforms to Western Union’s trusted payment infrastructure… enabling Crossmint’s customers to enjoy reliable cash pick‑up options in more than 200 countries globally.”
The selection of Solana underscores its reputation for fast transaction speeds and low costs, further enhancing the efficiency of digital payments.
This strategic collaboration between Crossmint and Western Union not only enhances the efficiency of digital payments but also represents a pivotal moment in the adoption of blockchain technology for global money movement. As stablecoins become integral to financial transactions, partnerships like this are expected to drive further innovations and expansions in the digital payments landscape.
This article was generated with the assistance of AI workflows.
RWA distributed asset value on Stellar recently crossed the $1.3 billion mark.
Blockchain oracle provider RedStone has officially launched its price feed infrastructure on the Stellar blockchain.
In an X post on Wednesday, March 4, RedStone said that the integration aims to scale the decentralized finance ecosystem on Stellar, which is broadly used for payments and is one of the largest chains by real-world asset (RWA) value.
The deployment by RedStone introduces new layers of data for DeFi applications, focusing on delivering precise and reliable price feeds suitable for institutionally-focused tokenized RWAs.
“Lending protocols need reliable price feeds. DEXs need accurate data. RWA platforms need institutional infrastructure. You can’t build financial products without trusted oracles,” RedStone said on X today.
Stellar is currently the fifth-largest blockchain network in terms of RWA value on-chain, per data from RWAxyz. Distributed asset value on Stellar recently reached over $1.3 billion for the first time, up 25% in the past 30 days and 50% since the start of 2026.
By far the largest RWA on the network is Franklin Templeton’s on-chain money market fund, BENJI, with $678 million in distributed asset value on Stellar.
In its announcement today, RedStone noted that it will provide the BENJI fund feed as part of the integration “bringing institutional-grade price feeds of real-world assets to the Stellar DeFi ecosystem.”
Stellar, which launched in 2014, has a market cap of about $5.2 billion, ranking it 21st among cryptocurrencies, per The Defiant’s price page. XLM is up 6% in the past 24 hours as the broader crypto markets rally.
On-chain RWAs as a broader sector saw massive growth last year, bringing billions of dollars on-chain as an increasing number of large, global financial institutions launched tokenized funds and other assets.
This article was generated with the assistance of AI workflows.
Four days into the onset of the US-Israeli war with Iran, bitcoin (BTC) has outperformed many major asset classes, including commodities that were supposed to shine in exactly this scenario.
Since Donald Trump authorized Operation Epic Fury’s opening airstrikes at 1:15am New York time on February 28, BTC has surged 12.1% from $65,492 to $73,419 at time of writing.
Crude oil, the one asset with an obviously bullish wartime supply reduction, gained a less impressive 10.4% from $67.29 to $74.31 per barrel.
Gold has actually dropped 3% since the onset of war despite an initial safe-haven spike.
Silver entirely retraced a brief spike on war fears and is now down 10.2% after a rollercoaster ride alongside gold and other precious metals.
Easy to beat, the S&P 500 Index flatlined at -0.1%.
A weekend of relative strength amid a bad year
Nvidia, the artificial intelligence (AI) darling that once moved markets by itself and gained signed assurance from the Pentagon that OpenAI would continue to generate plenty of demand for its chips, managed to rally a modest 2.8%.
Even adjusting that 2.8% by 3.1x to account for Nvidia’s larger-than-BTC market cap, it still underperformed the world’s largest crypto by 340 basis points.
The disappointment from precious metals holders is evident. As the US military made obvious movements across the Atlantic into the Gulf states last week, gold and silver steadily ticked higher in textbook fashion — then spent the next three days bleeding out as the dollar strengthened and inflation fears displaced geopolitical hedging.
While BTC investors gained, owners of non-digital hard monies over the last week watched an initial pop turn into a net loss.
Of course, the numbers above are since the proper onset of war. Year-to-date figures are distinct.
Over this longer time frame, BTC has lost 16% while gold has rallied 18%. As usual, there are two sides to every story.
An even better weekend performer than oil
Although the outperformance of BTC raises eyebrows, crude oil’s gain makes intuitive sense. Iran’s Islamic Revolutionary Guard Corps threatened the Strait of Hormuz, the chokepoint near Iran through which roughly one-fifth of the world’s oil transits daily.
Tanker vessel traffic through the strait dropped roughly 81% since the war began, as insurers pulled war risk coverage and shippers avoided the strait for legitimate fears of human life.
Tanker rates in the area hit all-time highs. Brent initially spiked 13% to $82 before settling a bit lower. Barclays analysts warned of $100 per barrel if the blockade holds, though the Organization of the Petroleum Exporting Countries Plus announced 206,000 barrels per day in additional output to soften the supply crunch.
Still, BTC outperformed oil during the year’s biggest war.
Read more: CHART: Bitcoin has lost all of its gains since Trump’s election
AI agrees: BTC is the trade
Interestingly, a recent study has highlighted a new macro tailwind for BTC that could drive demand in 2026.
Researchers published results from 9,072 experiments across 36 frontier AI models and found that AI agents chose BTC 48% of the time when selecting an optimal monetary asset.
For store-of-value use cases specifically, 79% picked BTC. Anthropic’s Claude Opus 4.5, one of the world’s most-used models, chose BTC 91% of the time.
Conventional wisdom was that war favors gold, oil, and the dollar. Four days of live data say otherwise. BTC absorbed the initial shock, recovered faster than many traditional safe havens, and now tops leaderboards of trillion-dollar assets since the early morning hours of Saturday.
Whether the Strait of Hormuz reopens next week or next year, this was the week BTC became an interesting crisis asset performer.
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Crypto World
Hong Kong Issues First Stablecoin Licenses as Global Digital Money Architecture Takes Shape in 2026
TLDR:
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- Hong Kong issues its first stablecoin licences in March 2026 under a strict reserve-backed regulatory framework.
- EnsembleX connects major banks through tokenised deposits, with HSBC settling HK$3.8M for Ant International in real time.
- Europe, the US, and Asia-Pacific are all building identical three-layer digital money stacks on incompatible platforms
- Interoperability protocols are now considered foundational as fragmented infrastructure threatens cross-border settlement at scale.
Stablecoins are moving from concept to regulated reality in Hong Kong. Financial Secretary Paul Chan confirmed the city will issue its first stablecoin licences in March 2026.
The announcement came on February 26, drawing wide attention to the city’s broader digital money framework. Beneath the headline, however, lies a three-layer architecture that mirrors patterns emerging across major financial centres worldwide.
That convergence raises pressing questions about interoperability and the future of cross-border digital finance.
Hong Kong Builds a Three-Layer Digital Money Stack
Hong Kong’s approach to digital money operates across three distinct layers. Each layer runs on different infrastructure, yet all three are intended to work in coordination. This structure reflects the city’s commitment to developing programmable and interoperable finance.
The first layer covers licensed stablecoins governed by Hong Kong’s Stablecoins Ordinance. Under this framework, issuers must hold 100% reserve backing and maintain a minimum HK$25 million in capital.
Redemption is guaranteed within one business day. As a result, these stablecoins are well-suited for retail payments and cross-border transfers.
The second layer involves tokenised deposits through EnsembleX, launched in November 2025 with real money. Participants include HSBC, Standard Chartered, Bank of China (Hong Kong), and other regional institutions.
BlackRock and Franklin Templeton are also taking part. HSBC completed the first cross-bank transaction on November 13, transferring HK$3.8 million for Ant International in real time.
The third layer is EnsembleTX, Hong Kong’s wholesale CBDC platform. It settles tokenised deposit transfers between banks. Financial Secretary Paul Chan has emphasised that it will strengthen cross-border interoperability standards.
A Global Three-Layer Pattern Takes Shape in 2026
Hong Kong is not alone in building this structure. Throughout February 2026, a similar three-layer model emerged across Europe, the United States, and Asia-Pacific.
Quant Network observed on X that the move signals global convergence. Infrastructure fragmentation, the network noted, is becoming a global problem whilst everyone builds the same thing.
In Europe, Deutsche Bundesbank President Joachim Nagel endorsed wholesale CBDC for programmable payments on February 16.
BNP Paribas then tokenised a money market fund on public Ethereum, departing from its earlier private blockchain approach.
Nine European banks plan euro stablecoin launches in H2 2026. The ECB’s Pontes wholesale CBDC project targets Q3 2026.
In the United States, five regional banks announced a tokenised deposit network for Q4 2026 via Cari Network. The banks described the move as a defense against stablecoin displacement.
The GENIUS Act creates a federal licensing framework for stablecoins, with implementation set to begin in July 2026.
Fragmented Platforms Create a Growing Interoperability Problem
With multiple layers running on incompatible platforms, interoperability has become a clear operational challenge.
A Hong Kong corporate treasurer, for example, could face settlement across six different platforms in a single cross-border transaction. Each platform carries its own governance structure, compliance requirements, and settlement logic.
Point-to-point integrations between systems do not scale well over time. Building bilateral links between EnsembleTX, Pontes, Ethereum, and Kinexys creates growing complexity with each new connection.
This mirrors the challenge correspondent banking faced before SWIFT introduced a universal messaging standard.
A Research and Markets report published on February 25 confirmed this challenge directly. It identified interoperability protocols and regulatory messaging standards as foundational to scalable tokenised markets.
With stablecoin licences now live in Hong Kong and major deployments scheduled through 2026, cross-platform coordination has become an operational requirement.
Hyperliquid (HYPE) price has risen almost 31% since Feb. 24, then gave up some of its gains. At press time, the token traded near $32, up roughly 4.5% on the day and approximately 20% over the past seven days. Over the past 30 days, the HYPE price has remained in positive territory, up around 5%, while most top cryptocurrencies, including Bitcoin, Ethereum, BNB, XRP, and Solana, have posted losses over the same period.
The rally ties into a structural shift: Hyperliquid is becoming the go-to venue for trading traditional financial assets like oil, gold, and stocks around the clock, and every one of those trades feeds directly into the token’s deflationary burn engine. Meanwhile, smart money wallets are overwhelmingly long on HYPE itself, even as retail positions lean short.
Hyperliquid Removes TradFi’s Biggest Bottleneck
Traditional financial markets close on weekends and after hours. Hyperliquid does not. Traders can trade oil, gold, silver, and even stocks like NVIDIA on Hyperliquid using perpetual futures: 24 hours a day, 7 days a week, with sizeable leverage. That edge became impossible to ignore during the March 1–2 weekend.
Platform volume jumped to over $6.4 billion on Sunday alone.
Oil perpetuals on Hyperliquid reportedly surged nearly 20%. Open interest for commodities-focused derivatives allegedly reached an all-time high above $1.1 billion.
This was not a one-off spike.
According to Delphi Digital, tokenized TradFi assets hit 31.6% of all Hyperliquid trading volume in late January — up from under 5% just a month earlier. Metals, equity indices, and individual stocks possibly drove the rotation.
On-chain data from Lookonchain showed one whale depositing $7.35 million in USDC into Hyperliquid to long NVDA and SNDK stocks; holding over $11.94 million in NVDA and $2 million in SNDK with additional limit orders worth $4.53 million pending. This happened right before NVIDIA announced the Q4 results.
Integrations have further accelerated this adoption.
Ripple Prime, launched in early February, gives institutions access to Hyperliquid on-chain perpetuals through a traditional prime brokerage wrapper.
Trojan (formerly Unibot) integrated non-custodial bot trading of real TradFi assets, including TSLA, AMZN, GOOGL, gold, and silver, directly on Hyperliquid’s orderbook.
And on Feb. 24, CoinShares launched a physically backed HYPE staking ETP (ticker: LIQD) on the Xetra exchange — the first regulated product giving traditional finance investors direct exposure to HYPE with staking yield. So the TradFi to crypto link now seems to be working both ways.
The volume surge, mentioned earlier, matters for HYPE price because of a direct mechanical link — and that is where the burn flywheel comes in.
Every Oil, Gold, and Stock Trade on Burns Tokens Permanently
Approximately 97% of all core trading fees on Hyperliquid flow into the Assistance Fund: a system address that automatically buys HYPE on the open market and permanently burns the purchased tokens.
HyperEVM gas fees are also burned. This is not a governance vote or a manual marketing event. It is code-enforced, on-chain, and happens with every single trade; whether that trade is a Bitcoin perpetual, an oil future during a geopolitical crisis, or a leveraged NVIDIA position from a whale wallet.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Recent on-chain data showed the platform generated $2.74 million in 24-hour fees, $16.96 million over seven days, and approximately $9.22 million worth of HYPE burned last week — up over 20% week-over-week.
On the supply side, only about 26,790 HYPE are minted daily as staking rewards. Recent daily burn figures have exceeded 48,000 HYPE, resulting in a net removal of over 17,000 tokens per day. Burns are currently running 1.8 to 2.3 times faster than emissions.
That makes HYPE structurally net deflationary at current volume levels, even after accounting for the scheduled March 6 unlock of roughly 9.92 million HYPE for core contributors.
The flywheel is straightforward. More traders using Hyperliquid to trade oil, gold, stocks, and commodities around the clock generate higher fees. Higher fees mean more HYPE bought from the market and burned. More burning means a shrinking supply. And shrinking supply, combined with rising demand, creates price support, which is exactly what smart money appears to be positioning for.
Smart Money Goes All In While Retail Bets Against
On-chain positioning data on HYPE itself reveals a sharp divide between smart money and retail.
According to Nansen AI, overall sentiment on HYPE among tracked smart money wallets reads “strongly bullish.”
Named participants include Arrington XRP Capital with a $286,000 long entered near $31. Another one is Selini Capital with roughly $500,000 in combined longs across multiple wallets. Plus, there are several tracked smart Hyperliquid perps traders with entries ranging from $25 to $31 — all sitting on unrealized profits at press time.
Retail, however, is positioned in the opposite direction, especially in the broader timeframe. The Bybit HYPE/USDT 30-day liquidation map shows cumulative short liquidation leverage at approximately $33 million compared to roughly $23 million on the long side.
Short leverage clusters build significantly above the $34 range, creating potential fuel for a short squeeze if the Hyperliquid price pushes through that zone.
The Smart Money Index, which tracks the positioning of informed traders, on the technical chart, adds further confirmation for what the Nansen AI highlighted. It crossed above the signal line around Feb. 28, coinciding with the price acceleration. During the late January rally, this same indicator turned down right as sellers rejected HYPE at $43. This time, the indicator is pointing up again, though it still needs to clear the nearest horizontal resistance to confirm stronger momentum.
The divide is clear: smart money is accumulating HYPE while retail leans short. That setup, combined with the liquidation clusters above the price, has historically preceded sharp upward moves in crypto markets. And the technical levels above map out exactly where the next legs could go.
HYPE Price Targets $62 for a New All-Time High
The Hyperliquid price rally gained further technical significance when HYPE crossed and reclaimed the 20-day exponential moving average (EMA), a trend-following indicator. The last time this reclaim happened was in late January. HYPE subsequently rallied approximately 81% to $43 before sellers forced a correction.
Despite the current move measuring 31% from the swing low, HYPE is only about 15% above the 20-day EMA level itself. In the January instance, the token had moved much further above its EMA at the equivalent stage before accelerating into the full 81% rally. This suggests the current move may still be in its early stages if the pattern repeats.
Technical extension levels show that the immediate resistance sits near $34. It is also the zone where short liquidation leverage begins stacking heavily, making it the first real test. A break above $34 could trigger cascading short liquidations that accelerate the move.
The $39 represents one of the higher levels, followed by $43. Beyond $43, the technical extension reaches $48 and $62, which would represent a new all-time high, surpassing the September 2025 peak of over $59. From the current price near $32, that represents roughly 90% upside.
On the downside, losing $30 would weaken the bullish structure. A drop below $25 would invalidate the setup entirely, regardless of how strong the TradFi burn flywheel remains.
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