Avalanche surges 10%, Hyperliquid 7% after Fed decision

Barely announced, the Fed’s rate cut has reignited crypto market enthusiasm. However, behind this surge lies another driver: the leverage effect of project-specific announcements. Avalanche (AVAX) and Hyperliquid (HYPE), driven by aggressive strategies, captured most of the bullish flows. Between monetary steering and targeted initiatives, token performance depends as much on macroeconomic decisions as on their ability to convince on the ground.

Avalanche, the announcement that changes everything

While attention was focused on the Federal Reserve and its 25 basis point rate cut, Avalanche (AVAX) surprised with a +10.1% rise in 24 hours, reaching $32.59.

This significant rise is not only due to a more favorable macroeconomic environment. It mainly results from strategic initiatives specific to the Avalanche ecosystem, which triggered strong interest from institutional players.

Here are the main elements that fueled this dynamic:

• The announced launch of a one billion dollar digital treasury plan: the Avalanche Foundation is reportedly in advanced talks with a Nasdaq-listed company, supported by Hivemind and a SPAC sponsored by Dragonfly, to finance this ambitious plan;

• The goal is massive buyback of AVAX tokens at a reduced price, a strategy that applies upward pressure on the token price while strengthening the foundation’s treasury position;

• The filing for an AVAX ETF by Bitwise, with Coinbase as asset custodian, a major step toward institutional adoption.

These announcements acted as a catalyst at an already favorable time for risky assets. Thus, as explained Min Jung, senior analyst at Presto, “AVAX’s outperformance seems driven by Avalanche’s announcement of a $1 billion Digital Asset Treasury plan”.

According to her, even if the market had anticipated the rate cut, this type of project-internal development could support the short-term rise.

Hyperliquid, the rise of an outsider

Following Avalanche, another project made a remarkable breakthrough: Hyperliquid. Up 7.2% in 24 hours, the HYPE token reached $58.43, supported by the rise of USDH, its native stablecoin.

The latter attracts the attention of many institutional investors, notably due to its unique infrastructure. Ganesh Mahidhar, investment professional at Further Ventures, details the reasons for this enthusiasm: “USDH is attracting liquidity across the board from many institutions, with perp trading built so that custody is not with the exchange but the UX is just as smooth as a centralized exchange“.

This hybrid model, combining the security of decentralized solutions with the ergonomics of centralized exchanges, seems to meet a specific expectation of institutional players. In a context where trust in custody platforms is regularly tested, this technical architecture represents a serious comparative advantage.

Although markets briefly reacted to the Fed’s rate cut, Mahidhar recalls that the effect could be short-lived, as the cut had been anticipated for months by the markets. Therefore, innovations like Hyperliquid’s could now guide flows.

In the medium term, the Hyperliquid case raises questions about the transformation of stablecoins from passive tools to competitive infrastructure products. While USDT and USDC dominance remains intact, the arrival of alternative models could redefine stablecoin usage in decentralized finance. By extension, this also opens the way to new valuations of tokens hitherto considered peripheral, as their technology finds concrete application in global financial flows.