Stablecoin Launch - Native Markets' USDH stablecoin launched on Hyperliquid with a USDH/USDC trading pair [1] - Early trading volume for the USDH/USDC pair reached approximately $2.2 million [1] Reserve and Transparency - USDH reserves are reportedly fully backed by cash and short-term U S Treasuries [1] - The reserve management strategy involves a mix of off-chain management and on-chain allocation [1] - Transparency is maintained through oracle feeds [1]

Core Insights - Hyperliquid's HYPE token experienced a 2% decline on September 16 due to concerns over a potential $107 million sell-off by a whale investor [1] - The whale, who initially staked 2 million HYPE tokens, has begun moving funds after a significant profit, raising fears of a large sell-off [2] - Current trading price of HYPE is around $52.6, indicating a paper profit of nearly $89.8 million for the whale [2] Market Sentiment - Analysts indicate a growing bearish sentiment in the short term, highlighted by another major investor opening a 3x leveraged short position on 303,901 HYPE, valued at approximately $16 million [2] - The Relative Strength Index (RSI) is currently in the neutral zone, suggesting a balance between bullish and bearish forces [4] Technical Analysis - HYPE is trading near the midpoint of a rising parallel channel established since late July, with key support levels identified at $50 and $47 for potential buying opportunities [3] - The MACD line is narrowing towards the signal line, indicating weakening bullish momentum, with a bearish crossover potentially confirming a short-term downside [5] - If the MACD resumes upward movement, resistance levels are expected near $55, with a potential price surge towards $60, the upper boundary of the trending channel [5] Future Outlook - The ongoing price downturn is perceived by some as an attractive entry point ahead of a potential rally, especially with Hyperliquid's upcoming launch of the USDH stablecoin, which is anticipated to enhance long-term confidence in HYPE's price [4]

Market Overview - Crypto market breakdown highlights Bitcoin price action, Solana's explosive breakout, and Hyperliquid's USDH stablecoin decision [1] - The report assesses the macro backdrop ahead of the FOMC and the latest ETF flows [1] - Institutional moves are reshaping the landscape for Bitcoin, Solana, and altcoins [1] Bitcoin Analysis - Recap of last week's volatility, key support/resistance levels, and ETF-driven momentum ahead of the Fed meeting [1] Stablecoin Market - Hyperliquid USDH vote results and implications for stablecoin markets, impacting HYPE price action [1] - Hyperliquid's stablecoin rollout could challenge Circle's USDC dominance and reshape stablecoin market share [1] Solana Analysis - Solana breakout driven by institutional capital inflows, including Forward Industries' $165 billion deal and Galaxy Digital's $700 million buy, with a technical outlook beyond $250 [1] Altcoin Market - Top altcoin performers and Treasury-driven accumulation trends are highlighted, with coins to watch this week [1] Macro Events - Key macro events include jobs data, CPI/PPI surprises, FOMC preview, and key dates for altcoin unlocks and upgrades [1]

Stablecoin Developments - Native Markets officially wins Hyperliquid's USDH stablecoin ticker [1] - Native Markets plans to deploy USDH HIP-1 and an ERC-20 token in the coming days [1]

Project Development - Native Markets team wins Hyperliquid USDH stablecoin bid [1] - Test phase is expected to begin 'within days' [1]

Cryptocurrency Market Trends - TRON surpasses ADA to become the 9th largest cryptocurrency [1] - El Salvador commemorates the 4th anniversary of Bitcoin Law with the purchase of 21 BTC [1] Stablecoin and DeFi Developments - Hyperliquid advances with its USDH stablecoin project [1] Company Strategy and Investment - Yorkville, operating as MCGA, is transitioning to Trump Media Group CRO Strategy [1] - SharpLink is considering staking a portion of its $36 billion ETH treasury on Linea [1]

Core Insights - Ethena Labs has withdrawn its proposal to issue Hyperliquid's upcoming USDH stablecoin due to community opposition and alignment issues [1][4][9] - The withdrawal allows Native Markets to gain traction as a contender for USDH issuance [4][9] - Paxos emerges as a leading candidate with a revised proposal that includes integration with PayPal and Venmo, along with a $20 million incentive plan [6][9] Company Focus - Ethena Labs acknowledged community concerns regarding its non-native status and multiple product lines, leading to the decision to withdraw [4][5] - Despite exiting the USDH race, Ethena Labs plans to continue investing in the Hyperliquid ecosystem, focusing on products like hUSDe and new savings solutions [5][9] Competitive Landscape - The competition for USDH issuance is intensifying, with Paxos now appearing as a frontrunner following its recent proposal [6][7] - Validators are set to begin voting on September 14, with other notable proposals from Frax Finance, the Agora–Rain–LayerZero consortium, and Sky [7]

Project Update - Ethena Labs withdrew its bid to issue Hyperliquid's USDH stablecoin due to community concerns [1] - Concerns included Ethena not being a Hyperliquid-native team and having other product lines [1] - Ethena will continue developing hUSDe, USDe savings/cards, hedging flows on Hyperliquid, and HIP-3 markets [1]

Stablecoin Issuance - Polymarket heavily favors Native Markets to win the bid to issue Hyperliquid's USDH stablecoin [1]

USDH Stablecoin Initiative - Hyperliquid aims to launch USDH to stimulate spot markets, reduce reliance on USDC, and enhance exchange efficiency [1] - USDH will reduce trading fees by 80% in select spot pairs, strengthening HyperCore [2] - A native stablecoin could recycle approximately $200 million in USDC revenue to fuel Hyperliquid's growth [2] Competitive Landscape - Three leading contenders for issuing USDH are Native Markets, Ethena, and Paxos [3] - Native Markets offers revenue splits for HYPE buybacks and growth incentives, with strong regulatory alignment [4] - Ethena Labs promises $75 million to grow USDH and partnerships with Securitize and Anchorage Digital [5] - Paxos proposes a PayPal partnership, HYPE listings on PayPal/Venmo, and $20 million in incentives [6] Hyperliquid's Market Position - Hyperliquid averages $57 billion in weekly volume and surpasses NASDAQ's revenue rate [3] - Hyperliquid accounts for 35% of blockchain revenue at times [3] - Hyperliquid is considered the world's most profitable company by revenue per employee as of August [3] Industry Impact - USDH's entry has spurred other ecosystems to consider native stablecoins to retain yield [9] - The success of USDH could extend Hyperliquid's track record and demonstrate crypto's potential [10]