Hyperliquid’s HYPE Token Soars Past $50 Amid Fierce Stablecoin Proposal Battle

DeFi's latest darling just shattered the $50 barrier—and the timing couldn't be more strategic.

Hyperliquid's native token HYPE rockets upward as developers scramble to dominate the next stablecoin narrative. The protocol's governance forum burns with competing proposals, each promising to deliver the 'ultimate' decentralized dollar alternative.

Market momentum builds as traders bet which proposal will capture community support—and which team might actually deliver working products instead of vaporware promises.

Watch for volatility: these governance battles often create winner-take-all dynamics that either cement protocols at the top or leave them bleeding value from fractured communities.

Another day in DeFi—where the only thing more unstable than the stablecoins are the roadmaps claiming to create them.

Paxos bid for USDH

Paxos, a long-time stablecoin operator, entered the race with a proposal led by its new division, Paxos Labs.

The group, formed in June, said it WOULD ensure that USDH complies with stablecoin regulatory frameworks in Europe and the US while deploying the token directly on Hyperliquid’s two chains, HyperEVM and HyperCore.

It also stated that USDH would hold the highest quality T-Bills, Repos, and USDG reserves.

Meanwhile, the proposal offered an aggressive revenue-sharing model.

According to Paxos, 95% of interest from USDH reserves would go toward buying back HYPE and this redistribution would be earmarked for ecosystem partners and users.

Paxos also pledged to list HYPE across its brokerage infrastructure, which already powers trading on PayPal, Venmo, MercadoLibre, Nubank, and Interactive Brokers.

Paxos Labs co-founder Bhaumik Kotecha noted that the firm aims to keep USDH infrastructure open to developers and payment providers, rather than tying it to exclusive partnerships. That approach, he said, would maximize USDH’s liquidity and cost efficiency across on-ramps, DeFi protocols, and fintech applications.

Agora assembles coalition

Stablecoin developer Agora, known for issuing the VanEck-backed AUSD, submitted a rival bid.

Its plan features a coalition that includes Rain for card and fiat coverage, LayerZero for cross-chain interoperability, and Moonpay for retail access at launch.

Agora pledged to send all net revenue from USDH operations back to Hyperliquid, either through its Assistance Fund or by purchasing HYPE on the open market.

Agora’s chief executive officer Nick van Eck emphasized that USDH would be native to Hyperliquid, not an asset repurposed from another ecosystem. He also described Agora as a neutral issuer, without its own chain or brokerage, ensuring it would not compete with partners.