Hyperliquid (HYPE) has recently seen a significant surge in price, rising by 21% over the past week. This positive development stands out amidst the negative trading trends observed in many other major cryptocurrencies. Despite this impressive performance, a new report suggests that HYPE may still be undervalued relative to its potential.
Hyperliquid’s trading volume has reached unprecedented levels, with a 24-hour perpetual volume of $6.48 billion and open interest recorded at $6.41 billion. In a notable shift, trading in crude oil perpetuals has surged to $1.39 billion daily, making it the second most traded asset, surpassing Ethereum (ETH).
Furthermore, the cumulative protocol revenue for Hyperliquid has surpassed $1.039 billion, with an annualized run-rate of around $664 million. The report emphasizes that 99% of all fees are directed towards buybacks and burns of HYPE through the Assistance Fund, indicating a strong commitment to value creation.
With these impressive metrics recorded over the past month, Hyperliquid is transitioning from a leading on-chain derivatives platform to a more expansive decentralized finance (DeFi) Layer-1 (L1) solution. The platform has also witnessed record-breaking trading in real-world assets (RWA), reinforcing its position as a key player in the financial markets.
Market analyst TraderJB has commented on HYPE’s technical outlook, noting its cleaner and more favorable price action compared to many other cryptocurrencies. TraderJB predicts that the current price movement suggests an inverted zigzag formation nearing its supply limit. To sustain its upward momentum, HYPE will need to generate additional upward waves while staying above the $20.80 price level to avoid a potential trend reversal.
In conclusion, Hyperliquid’s recent performance and growth trajectory indicate its potential to continue evolving and expanding its presence in the market. With strong fundamentals and technical indicators, HYPE remains a cryptocurrency to watch closely in the coming weeks.