This article is also available in Spanish.
A new altcoin, Hyperliquid (HYPE), is quickly making waves in the cryptocurrency market, now ranking as the 28th largest cryptocurrency by market capitalization. This rise has seen the HYPE pass fixed coins such as Near Protocol (DUZE), and its value increased by 204% in just two weeks, bringing its market capitalization to about $8.93 billion.
Testing the Hyperliquid Protocol
Examining altcoin offerings is important to better understand the increased attention it received last week.
HYPE is the native token of Hyperliquid, a Layer-1 (L1) blockchain using HyperBFT technology. This tool it is reported that allows Hyperliquid to conduct “fast, secure, and transparent transactions,” bridging the gap between centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Specifically, with the protocol’s ability to handle more than 100,000 transactions per second and latency of less than one second, Hyperliquid faces the performance limitations commonly associated with other blockchains such as Solana (SOL) and Ethereum (ETH).
Related Reading
HYPE’s tokenomics includes a burning approach to supply control and price stability, a common practice seen in tokens such as Shiba Inu (SHIB). A robust sales program is also in place to balance liquidity and reduce sales pressure.
The token offers a variety of resource options to investors, including discounts on trading costs, participation opportunities, and management participation. HYPE owners benefit from a reduction trading feeswhich can greatly increase profits, while holding their tokens allows them to earn rewards or provide liquidity to trading pools.
New List And Launch Of HyperEVM To Boost HYPE?
Recent comments from crypto analyst Ericonomic have also highlighted several compelling reasons to remain bullish on HYPE despite any short-term correction for the Layer-1 altcoin.
The analyst notes that Hyperliquid is highly valued by Circle’s a stablecoin USDC deposits, showing strong demand, while auction prices have also reached unprecedented levels, with significant purchases made by notable organizations such as MON Protocol.
The total amount of USDC held in Hyperliquid has increased, indicating strong liquidity. In addition, many smart traders have invested millions in HYPE and publicly support the token, which raises confidence in its future potential.
Retail investors have not entered the market much, as HYPE is not yet available in Tier 1 central exchangethis can be a significant factor in its price if it gathers significant attention from these traders at the price of HYPE.
Related Reading
Ericonomic also found a comparison between HYPE and Binance Coin (BNB), noting that HYPE owners enjoy an even distribution of payments, as all funds generated are directed back to the Hyperliquid protocol.
In addition, the community expects several upcoming catalysts, including new listings on major crypto exchanges and the launch of HyperEVM, which can significantly improve the platform’s capabilities.
At the time of writing, HYPE has consolidated at the level of $26.91 following the return of its record high of $42, which was reached on December 12.
Despite this correction, the token is still showing massive gains of over 105% weekly, accompanied trading volumes for $342 million. Looking ahead, it remains to be seen whether there will be enough catalysts to support the token after its recent correction.
Featured image from DALL-E, chart from TradingView.com
Source link