Hyperliquid's native token HYPE jumped 20 percent in a day, helped by Elon Musk's public reaction and news of an investment by billionaire Stanley Druckenmiller. Expectations of an expansion into the U.S. regulated derivatives market added momentum, with HYPE again challenging its all-time high.

On Oct. 29, blockchain media outlet U.Today reported that HYPE rose as high as $95.49 at one point, approaching its record high.

The immediate trigger for the surge was Druckenmiller's first post on X, formerly Twitter, and Musk's response. Musk quoted Druckenmiller's post and briefly said, "Interesting." The market interpreted it as a signal of interest in Hyperliquid and decentralised derivatives infrastructure.

In his first post, Druckenmiller said he invested in fintech startup Trade[XYZ]. He cited its cooperation with Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, as the reason for the investment.

Trade[XYZ] and ICE plan to launch 24-hour regulated perpetual futures trading in the United States. Perpetual futures are derivatives that can be traded based on price changes without a maturity date. Druckenmiller introduced himself as an "active market participant" and said he would use the product in actual trading to optimise investment decisions.

As the investment news spread, trading in HYPE also increased quickly. Daily trading volume expanded to $796 million, and Hyperliquid's market capitalisation topped $24.2 billion, ranking ninth among global cryptocurrencies. Its fully diluted valuation reached $90.7 billion.

Hyperliquid's token distribution structure is also drawing attention. It promotes a "zero VC" model operated without traditional venture capital investment, and it is known to have allocated more than 76 percent of total token supply to the community. The structure, differentiated from existing venture capital-led projects, is cited as a factor raising investor expectations.

After Musk's reaction, Shadow, the founder of Trade[xyz], went a step further and suggested the possibility of combining X and xAI. He proposed to Musk combining on-chain derivatives infrastructure with xAI algorithms, arguing that the emergence of powerful artificial intelligence in capital markets is inevitable. He said real-time trading can be a key benchmark for verifying AI performance.

Shadow stressed that transparent distributed ledgers like Hyperliquid can provide a mathematically safe environment for superintelligence to search for fair prices. With proposals also emerging to combine AI and on-chain financial infrastructure, the rally is seen as reflecting expectations for a new financial market beyond a simple mention by a famous figure.

Whether the rally continues will depend on actual business results. Key variables include whether the cooperation between ICE and Trade[xyz] leads to the launch of regulated 24-hour perpetual trading in the United States, and how many users and how much money related services draw into the Hyperliquid ecosystem. Whether expectations sparked by Musk's brief remark translate into real demand is also expected to determine whether HYPE rises further.

Interesting