Hyperliquid and Sonnet Merger: A New Era for HYPE Access to Public Markets

Hyperliquid Strategies has officially merged with Sonnet BioTherapeutics, creating the largest treasury in the HYPE crypto sector. This merger opens access to public markets for the Hyperliquid [HYPE] chain and decentralized exchange (DEX). This article delves into the implications of this merger on HYPE's market position, its price movement, and the potential for future recovery.

Key Takeaways

Hyperliquid Strategies merged with Sonnet BioTherapeutics, establishing the biggest HYPE digital asset treasury.
The new entity will allow public market investors to participate in the Hyperliquid ecosystem.
The merger follows a significant $265 million interest in HYPE from various corporate treasuries.
HYPE's price showed resilience with a 17% recovery but faces resistance at $35.
Positive funding rates in the futures market suggest bullish sentiment surrounding HYPE.

Hyperliquid DAT Sonnet finalizes merger - Will $265M bid boost HYPE?

The Merger and Its Significance

Hyperliquid Strategies has completed its merger with Sonnet BioTherapeutics, leading to the creation of the largest treasury focused on HYPE cryptocurrency. Initially proposed in July, this agreement enables the newly formed entity to function under the name "Hyperliquid Strategies."

David Schamis, CEO of Hyperliquid Strategies, emphasized the significance of this merger, stating, "Today marks a watershed moment: U.S. public market investors can now participate directly in the Hyperliquid ecosystem through a highly liquid, publicly traded vehicle."

Currently, the largest digital asset treasuries (DATs) are primarily held in Bitcoin [BTC], Ethereum [ETH], and Solana [SOL]. However, beyond these major cryptocurrencies, only Binance [BNB] and HYPE have attracted notable interest from corporate treasuries.

Understanding the Impact of DATs on HYPE

Hyperliquid Strategies (HS) and Hyperion DeFi dominate the HYPE digital asset treasury landscape. HS currently holds 16.89 million HYPE, valued at approximately $583 million based on prevailing market prices.

This merger coincides with a $265 million bid for HYPE, reported by on-chain analyst Steven.

Hyperliquid

Hyperion DeFi holds 1.7 million HYPE, while Lion Group Holdings recently made a similar move, acquiring 194.7K HYPE. Collectively, this action has increased the supply represented by DATs to over 6% of the total tokens in circulation.

HYPE Price Trends

Following the updates from Hyperliquid Strategies, HYPE's price surged 9% and increased further by 17% before facing resistance around $35. By the time of this report, the price had dipped back to $34.4, but if it breaks through the resistance at $35, there is potential for it to reach $40.

Hyperliquid HYPE

Conversely, a price decline could pull HYPE down to $30 or even lower, toward the support zone of $25-$27. However, the positive funding rates for HYPE over the past six days hint at a bullish outlook in the futures market. The positive sentiment and emerging “W” bottom formation on the price chart may enhance the chances for a continued recovery to $40.

Hyperliquid

Overall, the digital asset treasuries may significantly mitigate the downside risk for HYPE while also promoting price recovery. While the price chart configurations and futures data suggest a continued upward trend, bulls will need Bitcoin to reclaim $96K for a greater ascent beyond the $35 barrier.

Final Thoughts

The merger between Hyperliquid Strategies and Sonnet BioTherapeutics marks a crucial phase for HYPE, potentially enhancing its visibility in the cryptocurrency market. With public access and increased treasury holdings, HYPE is poised for potential growth amid ongoing market dynamics.