Hyperliquid whales pile into newly launched oil futures market

Oil trading accelerated on Hyperliquid, with two contracts now active. Whales are also taking bolder positions on expectations of oil extending its trend. 

Hyperliquid now offers both Brent and WTI oil trades through HIP-3 and the XYZ exchange. The futures became active in the past week, as oil broke above $90. 

Whales are also making even bolder bets on expectations of oil expansion. The Iran war and the damage to the global supply chain created an expectation for even higher oil prices in the summer. 

In the past week, the XYZ:CL representing WTI oil entered the top 5 of the most traded futures. Oil displaced gold, silver, and copper as the previously hot-traded assets. 

Hyperliquid traders shift to commodities

The XYZ:CL is the second most traded contract on HIP-3, while a new Brent contract has entered the top 10 and is climbing in open interest and volumes. The shift to commodities follows the most recent stagnation of crypto prices, as traders were in search of more active assets. 

Oil broke above $100 for the first time in years, as the situation in Iran grew more complicated. Brent crude traded above $106, and WTI climbed to over $109, with the potential to turn oil into a major crypto trade on Hyperliquid. As Cryptopolitan reported, oil had a historical week, displacing speculation on stocks. The hard factors behind oil appreciation allowed traders to take more directional bets in an otherwise risky and choppy market. 

The shift to oil arrived as BTC retreated to the $67,000 range, erasing the hopes of an easy rally. At the same time, oil shows no signs of stopping, expecting vertical expansion with Monday’s market opening.

Whales take large positions on oil futures

While the biggest whales on Hyperliquid are still in crypto trades, the positions of whales on oil futures are growing. The influence of XYZ also grows, as it takes over 85% of Hyperliquid open interest, breaking above $1B in the past week. 

One of the early whales is holding a 2X leveraged position with a $6.3M notional value. 

A more aggressive trader has entered the market at $102 for WTI, with a position valued at over $14.9M and 20X leverage. The positions are relatively new, taken as oil on traditional markers broke above $100. Previous whales were already longing oil as the price broke above $90, showing that the more recent traders are ready to pay funding fees.

Oil remains risky as the price may be tamed by releasing reserves. However, the disruptions of war may prove the more influential factor, while whales are also feeling a sense of urgency in trading on HIP-3. 

Historically, expensive oil has put a damper on the crypto market. The existing infrastructure for oil trades also meant whales were ready to switch seamlessly. For now, the traders try to take profits in case the oil rally stalls temporarily.

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