Crypto traders switch to crude oil market as prices rally above $90

As crude oil resumed its rally on a mix of geopolitical factors and a short squeeze, the crypto markets reacted immediately. Volumes on HIP-3 picked up, and the XYZ:CL futures entered the top 5 most actively traded assets. 

Crude oil attracted crypto traders on Hyperliquid, as volumes picked up in the past days. The XYZ:CL contract is among the most active, competing with gold and silver. 

HIP-3 is turning into the most responsive platform for tokenized real-world assets, in the form of perpetual futures contracts. As oil resumed its climb, rising to over $92 on international markets, Hyperliquid showed its adaptability to user demand. 

HIP-3 now makes up around 30% of activity on Hyperliquid, with a dominance of the XYZ DEX as the source of the most actively traded futures. The expanded demand and the increase in volumes showed that crypto infrastructure was already setting standards and becoming responsive in providing new types of trades and immediate liquidity. 

Crude oil contract experienced 140% volume surge

As of March 6, HIP-3 achieved $2.2B in volumes, making up 30.1% of all Hyperliqid trading. In the past day, the XYZ:CL contract, mapping WTI crude light oil, had a 140% volume surge, reaching $242M in the past 24 hours. 

The CL contract has been picking up momentum in the past few days, passing the $100M daily trading milestone as of March 3. Open interest for CL expanded to $66.06M, as the asset moved up the charts to become the fifth most traded asset on HIP-3. 

Overall, HIP-3 achieved over $35B in trading volumes for the past month. While open interest on crypto diminished, the perpetual futures on US stocks, precious metals, and commodities became the main target for liquidity.

Whale trade crude oil volatility

Hyperliquid offers another opportunity to track or copy whales. One entity opened a large position on crude oil, quickly taking profits after the price rally. The whale withdrew $1.3M in USDC after closing all crude oil longs. 

Another trader is shorting CL, trading the asset’s potential volatility. The trader carries a $3.3M short position, currently with a $13K unrealized loss. 

In traditional markets, WTI kept expanding to $92.31, with predictions of prices rising to $150 or $200 as the war in Iran breaks down the supply chain. The initial panic rally may stall, however, as oil storage runs out, and a glut of deliveries may even turn prices negative. 

As Cryptopolitan reported, oil broke above $85 in the past day, and did not slow its pace to move even higher within hours. 

A Hyperliquid whale is also betting on a crypto market recovery. Currently, one entity with three known wallets holds the largest total long position on Hyperliquid. The trader has $315M in long exposures for BTC and ETH. Over the past week, the wallet has unrealized gains of $2.5M.