Hyperliquid’s HYPE token touched $75.96 on June 16, setting a new all-time high as traders flooded into SPCX-USDC, a perpetual futures contract that tracks SpaceX’s implied valuation. The previous record of roughly $75.48 to $75.52, set earlier this month, lasted about two weeks before the latest leg up erased it.

SPCX and the SpaceX IPO speculation machine

Hyperliquid launched the SPCX-USDC perpetual contract on May 18 under its HIP-3 framework, which governs how synthetic real-world assets get listed on the decentralized exchange. The debut was far from quiet. SPCX pulled in $33 million in trading volume on its very first day.

In the weeks since, cumulative open interest on the contract has surpassed $100 million. The perpetual contract doesn’t give you actual SpaceX equity. You’re betting on where the market thinks SpaceX’s valuation will go, not buying a slice of the rocket company.

The HYPE flywheel: fees, buybacks, and burns

Hyperliquid routes 99% of its trading fees toward HYPE buybacks and burns. Over $1.1 billion worth of HYPE tokens have been removed through this mechanism. HYPE’s market cap swelled to between $14 billion and $17 billion during the rally.

Traditional finance is paying attention

Spot ETFs tracking HYPE have attracted more than $136 million in inflows, outperforming broader benchmarks in the process.

What this means for investors

First, concentration risk. A significant portion of the recent volume spike is attributable to a single contract, SPCX. If SpaceX IPO speculation cools, that volume could evaporate quickly.

Third, the regulatory dimension remains unresolved. A perpetual futures contract that tracks a private company’s implied valuation sits in a gray area that regulators haven’t fully addressed. The SEC has historically taken a dim view of synthetic securities products, and a crackdown on this category of trading could materially impact Hyperliquid’s volume and, by extension, HYPE’s burn rate.

That said, the $1.1 billion in tokens already removed from circulation provides a meaningful floor of structural support. Those tokens are burned, not parked.