Hyperliquid (HYPE) Surges 204% to Become 28th Largest Cryptocurrency
A new altcoin, Hyperliquid (HYPE), ranks as the 28th largest cryptocurrency by market capitalization. HYPE has surpassed established coins like Near Protocol (NEAR), experiencing a value increase of 204% in two weeks, resulting in a market capitalization of approximately $8.93 billion.
Exploring The Hyperliquid Protocol
Understanding HYPE's offerings explains its recent popularity. HYPE is the native token of Hyperliquid, a Layer-1 blockchain utilizing HyperBFT technology. This technology enables fast, secure, and transparent transactions, bridging centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Hyperliquid can handle over 100,000 transactions per second with latency under one second, addressing performance limitations found in blockchains like Solana (SOL) and Ethereum (ETH).
HYPE features a burn mechanism to control supply and support price stability, similar to practices in tokens like Shiba Inu (SHIB). A strict vesting schedule balances liquidity and mitigates selling pressure.
Utility options for HYPE holders include trading fee discounts, staking opportunities, and governance participation. Reduced trading fees can enhance profitability, while staking allows users to earn rewards or provide liquidity in trading pools.
New Listings And HyperEVM Launch To Boost HYPE?
Crypto analyst Ericonomic highlights reasons to remain optimistic about HYPE despite potential short-term corrections. Hyperliquid has recorded all-time highs in USDC deposits, indicating strong demand, with significant purchases made by entities like MON Protocol.
The surge in USDC held on Hyperliquid demonstrates robust liquidity. Many traders have invested millions in HYPE, suggesting confidence in its future. Retail investors have not significantly entered the market, as HYPE is unavailable on Tier 1 centralized exchanges, which could be a catalyst for price increases if interest grows.
Ericonomic compares HYPE to Binance Coin (BNB), noting that HYPE holders benefit from an equitable distribution of fees returned to the Hyperliquid protocol. Upcoming catalysts include new listings on major exchanges and the launch of HyperEVM, potentially enhancing platform capabilities.
As of now, HYPE consolidates at $26.91 following a retracement from its peak of $42 on December 12. Despite this correction, it shows substantial weekly gains of over 105%, with trading volumes reaching $342 million. Future catalysts will determine the token's trajectory post-correction.
Featured image from DALL-E, chart from TradingView.com.