Hyperliquid USDH Stablecoin Launch with $2 Million Volume

Hyperliquid's New Stablecoin USDH Quickly Gains Traction

The new stablecoin USDH launched by Hyperliquid has reached $2 million in volume in just a few days after its launch. Currently, the USDH/USDC trading pair is trading at 1.001, with a total trading volume of 2,244,932.79 USDC.

The Hyperliquid validator community selected Native Markets to acquire the USDH ticker after a lengthy bidding war. Previously, Paxos, Ethena, Frax and others also submitted bids in this battle. This circulating dollar-pegged stablecoin is issued directly on the HyperEVM platform and backed by cash and short-term U.S. Treasury bonds.

USDH aims to reduce Hyperliquid's reliance on external stablecoins. More than 90% of the transactions on the platform are in USDC issued by Circle. Having a domestic stablecoin will help Hyperliquid keep liquidity and the return on its reserves within its ecosystem.

USDH is designed to channel the revenue from its reserves within the ecosystem. Under this system, half of USDH's reserve income will be used to fund HYPE buybacks, while the other half will support ecosystem growth initiatives.

Hyperliquid is the largest on-chain perpetual futures decentralized exchange in the world, controlling over 35% of global activity. However, while its market share was once around 70%, it is currently experiencing a sharp decline and has experienced a significant contraction.