$269 Million Borrowed Against HYPE in Hyperliquid's Debut

On September 18, 2026, Hyperliquid's lending platform went live, allowing users to borrow dollar stablecoins USDC and USDT by using HYPE (CRYPTO:HYPE) or Bitcoin (CRYPTO:BTC) as collateral. In its first 24 hours, the platform saw a staggering $269 million borrowed, according to Hyperliquid co-founder Jeff Yan.

This marked a significant milestone for HYPE, pushing its price to a record near $93 that day and ultimately surpassing it by September 24, with a trading price of $94. This represents an 18.7% increase over the week leading up to this date.

The introduction of lending has altered the nature of HYPE as an asset. Before September 18, holders generated income from trading fees and staking rewards. However, the new feature allows users to access cash without selling their tokens, adding another utility for HYPE.

One unique aspect of Hyperliquid's rules is that HYPE has a loan-to-value (LTV) limit of 65%, whereas Bitcoin's LTV limit is only 50%. This means users can borrow up to $650 in stablecoins for every $1,000 of HYPE. Additionally, the liquidation thresholds differ between the two assets, with a HYPE loan liquidating at 82.5% of its value and a Bitcoin borrower facing liquidation after a 75% price drop.

The decision by Hyperliquid to set a higher borrowing limit for HYPE introduces a new avenue for forced selling. If HYPE falls sharply, loans backed by the token approach their liquidation thresholds, prompting Hyperliquid to liquidate collateral to repay stablecoin lenders. This can drive HYPE prices down further, creating a vicious cycle.