HYPE, LIT Tokens Defy Crypto Selloff — And Trump-Iran Tensions May Be Part Of The Reason

• The rally came after a report that President Donald Trump rejected Iran’s latest peace proposal and has scheduled a national security meeting scheduled for Tuesday.
• Bitcoin fell below $76,200, helping drag the total cryptocurrency market capitalization down 1.8% to roughly $2.6 trillion.
• Retail sentiment around HYPE on Stocktwits rose to ‘extremely bullish’ territory, while chatter levels surged to ‘extremely high’ levels.

Tokens behind decentralized exchanges Hyperliquid (HYPE) and Lighter (LIT) defied the broader selloff in the cryptocurrency market on Monday, gaining even as Bitcoin (BTC) and most major digital assets moved lower after President Donald Trump reportedly turned down Iran’s latest peace proposal and that a national security meeting on Iran is due tomorrow.

HYPE’s price jumped 4% in the last 24 hours to around $45.34, while LIT’s price gained 6.4% to trade at around $0.92. The overall cryptocurrency, on the other hand, fell 1.8% in the last 24 hours to around $2.6 trillion and Bitcoin’s price dropped to $76,000, wiping out its gains for the month of May.

According to a report by Axios, the White House thought Iran’s proposal for peace was not “a meaningful improvement” and “insufficient for a deal.” It added that Trump is expected to meet with his top national security team on Tuesday to discuss possible military options. 

A White House official told the publication that if Iran does not shift its position, the U.S. may have to continue negotiations “through bombs.”

Traders Turn To 24-Hour Crypto Markets

The rally in HYPE reflected growing demand for perpetual decentralized exchanges (DEXs), which allow traders to maintain leveraged positions around the clock without relying on traditional market hours.

With Trump’s national security team expected to meet on Tuesday to discuss Iran, expectations around market-moving developments while traditional equity and commodity markets remain closed is higher. Perpetual DEXs such as Hyperliquid and Lighter allow traders to react immediately to geopolitical headlines.

Earlier phases of the Iran conflict also drove increased trading activity on the platform, particularly among traders seeking exposure to oil-linked perpetual contracts. Maelstrom chief investment officer Arthur Hayes has put a $150 price target on HYPE’s token for the end of the year. 

Retail Momentum Builds Around HYPE

Retail sentiment around Hyperliquid on Stocktwits improved to ‘extremely bullish’ from ‘bullish’ territory over the past day. Chatter levels rose to ‘extremely high’ from ‘high.’

One retail trader forecast that HYPE's price could hit $200 amid the current demand to trade perpetuals.

By contrast, retail sentiment around Lighter remained in ‘bearish’ territory, with chatter staying at ‘low’ levels despite the token’s rally.

HYPE remains about 23% below its record high of $59.30 reached in September last year. Still, the token has gained roughly 2.5% over the past month and nearly 70% over the past year.

Lighter’s LIT token has struggled in comparison. It remains down more than 10% this month and nearly 88% below its all-time high of $7.86 reached in December. The token also slipped below the $1 mark last week.

Hyperliquid’s token remained 23% below its record high of $59.30, seen in September last year. The token has gained 2.5% over the past month, and nearly 70% over the past year. 

Lighter’s token is down over 10% this month. And over 88% below its record high of $7.86 seen in December last year. The token’s price slipped below $1 last Monday. 

Read also: Iran Reportedly Wants To Use Bitcoin To Protect The World's Most Critical Crude Oil Chokepoint

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