In an unprecedented trading frenzy, precious metals such as gold and silver experienced a wave of liquidations on the decentralized exchange (DEX) Hyperliquid. This surge in liquidations coincided with significant price fluctuations, signaling heightened activity surrounding real-world assets (RWA) on blockchain platforms.
Gold and Silver Take the Spotlight on Hyperliquid
According to data from Allium, perpetual futures markets tied to precious metals accounted for a staggering $71 million in liquidations in just one day, while Bitcoin led the platform with $121 million in liquidations. This dynamic showcases growing demand for trading commodity-based RWAs, fueled by Hyperliquid’s October upgrade allowing third-party developers to list markets for assets like commodities and equities.
“The demand for silver has been insane on Hyperliquid,” noted Sam Ruskin, a Messari Analyst. “I’d like to see sustained demand in less volatile environments, but Hyperliquid is capturing volatility wherever the hot ball of money goes next.”
Silver Prices and Massive Trading Volume
On Thursday, silver prices experienced a steep drop to $106 per ounce, a 12% decline from a recent peak of $121 per ounce. While the price rebounded slightly to $116, this volatility sparked rapid trading activity. Markets tied to silver on Hyperliquid registered $1.6 billion in trading volume, significantly outpacing gold’s $553 million.
Both metals made waves on Wall Street as well, with exchange-traded funds (ETFs) tracking their prices achieving record trading levels. Bloomberg’s Senior ETF Analyst Eric Balchunas reported that gold ETFs traded $25 billion in shares, with silver ETFs reaching $20 billion by 1 p.m. ET—a volume typically seen over an entire year.
Tokenized RWAs Driving Growth
Hyperliquid’s evolution highlights its recent pivot from mere leveraged meme coin trading to becoming a key player in RWAs within decentralized finance (DeFi). TradeXYZ, a Hyperliquid-based DEX, facilitates trading in tokenized versions of commodities like gold and silver, catering to traders seeking exposure to tangible assets.
Additionally, Hyperliquid’s platform incorporates a HYPE token burning mechanism, which removes tokens from circulation through protocol fees. This scarcity effect can increase demand for the token. Over the past week, Hyperliquid’s native token, HYPE, saw its value rise by 50% to $32.83, significantly outperforming other cryptocurrencies as Bitcoin reached its lowest price in two months.
This impressive performance reflects increasing interest in RWAs, with Hyperliquid generating $62 million in fees this month alone, according to DefiLlama. Although this figure marks a decline from prior months, it indicates sustained growth in on-chain activity.
Get Started with Gold Investments
If you’re inspired by the growing demand for precious metals, consider investing in physical gold through trusted sources like the APMEX gold marketplace, a leader in gold and silver trading. With competitive pricing and a wide variety of options, platforms like APMEX allow you to stay ahead of asset trends while diversifying your investment portfolio.
Explore the world of tokenized real-world assets on platforms like Hyperliquid and start participating in the next evolution of decentralized trading.
