HYPE Surges as Coinbase Now Official USDC Deployer on Hyperliquid, Boosting DEX Revenue

Crypto exchange Coinbase has become the official USDC deployer on the Perp DEX Hyperliquid, a move which will boost the DEX’s revenue. The HYPE token is up amid this development, rebounding from its recent lows following the Bitcoin crash.

Coinbase Now Official USDC Deployer On Hyperliquid

In an X post, the crypto exchange announced that it is now the official deployer of Hyperliquid’s USDC treasury wallet. It further revealed that it will be activating the AQAv2 framework from two wallet addresses.

The AQAv2 framework ensures that Coinbase routes the majority of the yield earned on Hyperliquid’s USDC reserves back to the DEX’s ecosystem, potentially increasing Hyperliquid’s revenue by up to $200 million. In turn, the perp DEX is likely to allocate most of its revenue to HYPE token buybacks and burns.

HypurrScan data shows that the first wallet (0x4E5…..d96F8) already has just over $32 million of staked HYPE tokens. Meanwhile, the top crypto exchange has yet to execute any transactions on the second wallet (0xc20…..13c00).

This development comes less than a month after Coinbase first announced that it would become the official USDC deployer. The exchange also revealed that back then, it had increased its staked HYPE position.

It is worth noting that USDC is the collateral token for the HIP-3 and HIP-4 markets, which are also generating significant interest. The HIP-3 DEX Trade.xyz recorded $16.18 billion in weekly trading volume last week, which was its best week since launching in October last year.

HYPE Token Surges

The Hyperliquid token has surged today amid Coinbase becoming the official USDC deployer on the Perp DEX. The token is currently trading at around $64, up over 8% from an intraday low of around $60, according to TradingView data.

The DEX token is also up, as crypto exchange Kraken has enabled HYPE staking on its platform, which could further boost demand for the token. Meanwhile, Hyperliquid recorded a strong week, which is also positive for HYPE.

The crypto leverage trading platform generated $29.5 million in fees and $24.07 million in revenue. This marks the DEX’s highest weekly revenue since the week of February 2 and the week of the infamous October 10 crypto crash. The DEX notably uses up to 99% of its revenue to buy back the HYPE token through the ‘Assistance Fund’ mechanism.

Interestingly, research platform Citrini recently praised Hyperliquid in its latest Substack post, calling the DEX the antidote to FTX’s failure. Bitwise’s CIO, Matt Hougan, also recently praised the platform as a potential “super app,” not just a crypto platform.