Hyperliquid Joins Top 20 Crypto As Market Cap Hits $10B: Why HYPE Price Is Up 63% In a Week?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen countless tokens and coins enter the scene only to fade away into obscurity. However, the Hyperliquid token has caught my attention and piqued my interest, and here’s why.

Despite just making its debut in the crypto market a few short weeks ago, the Hyperliquid token now ranks among the top 20 cryptocurrencies following Polkadot, having reached a $10 billion market capitalization. Fueled by a strong surge in value over the past week, the token has come into its own, and here’s why:

HYPE Price Hit ATH After 63% Rally

Despite the unpredictable nature of the crypto market, the HYPE token continues to thrive and move upwards. Over the past week, the price of Hyperliquid has risen by an impressive 63%, reaching a new all-time high of $34.71. What’s even more noteworthy is that its market capitalization has surpassed $10 billion, placing it just behind Polkadot in the top 20 cryptocurrencies.

The layer one blockchain, Hyperliquid, launched its native token, HYPE, just three weeks ago and has followed a bullish trajectory. As a result, the HYPE price has risen 977% since then, impressing the community. At present, the HYPE is under a minor consolidation, currently trading at $34.47 with a 50% increased trading volume of $655.01M

Significant to note, the token’s absence from prominent cryptocurrency exchanges such as Binance and others persists, yet the recent spike in value has heightened the chances for its inclusion.

Hyperliquid’s Buyback Mechanism Fueling The Price

1) Hyperliquid offers several distinctive traits that investors find appealing. On the L-1 blockchain platform, there’s a fee-to-re purchase system, which channels all trade fees towards buying tokens. This buyback action generates demand for the token, causing its value to increase. Notably, the company uses every $10K in revenue to acquire HYPE tokens. As reported by a crypto analyst, Hyperliquid recently invested $3M to purchase more of their own tokens, sparking the current surge in HYPE’s price.

New information indicates that the company has traded an impressive $16 billion in perpetual volume, accounting for nearly 30% of Binance’s total volume. Consequently, users have dubbed Hyperliquid as the ‘decentralized version of Binance,’ attributing this to its lower perpetual fees and various appealing factors that boost demand. Furthermore, some traders are advocating for other blockchain networks, particularly Ethereum, to adopt similar features, given the current struggles in ETH‘s price trend.

HYPE Airdrop Success Favored the HYPE Price Rally

2024 saw the HYPE airdrop rise to one of the largest crypto giveaways of the year, according to ASXN data, with a total distribution of 270 million HYPE tokens among 94,000 users. Launched in late November, this event noticeably boosted the token’s price during its release. As a result, the value of the HYPE token skyrocketed by an impressive 125% on that day alone. Many analysts have praised this move as a brilliant marketing strategy, given that it was limited to just 94,000 participants, in contrast to similar initiatives from competitors. On average, users who qualified for the airdrop received approximately 2881 HYPE tokens, but a select few “whales” were granted an enormous amount – up to 508,985 tokens, which equates to roughly $16 million at the current token price.

What’s In There For You?

Following a significant setback earlier, leading altcoins have picked up speed today. Yet, the Hyperliquid token stands out among others, experiencing a 63% increase over the past week. The HYPE token’s price peaked at $34.71 after the company invested $3M in purchasing back the HYPE token. The layer1 blockchain network boasts several intriguing features, such as the fee-to-buyback mechanism, which consistently builds buying pressure for the token, ultimately driving the price upward. Additionally, its low trading fees on perpetual contracts and continuous development are expected to boost demand, further igniting the token’s price surge.

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2024-12-21 11:23