HYPE Frenzy: New Altcoin’s 200% Surge Vaults Past NEAR’s Market Cap
17 December 2024 - 7:30PM
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A new altcoin, Hyperliquid (HYPE), is rapidly making waves in the
cryptocurrency market, now ranking as the 28th largest
cryptocurrency by market capitalization. This ascent has seen HYPE
surpass established coins like Near Protocol (NEAR), with its value
soaring by 204% in just two weeks, bringing its market
capitalization to around $8.93 billion. Exploring The Hyperliquid
Protocol Examining the altcoin’s offerings is essential to
better understanding the increased attention it has garnered over
the past week. HYPE is the native token of Hyperliquid, a
Layer-1 (L1) blockchain that utilizes HyperBFT technology. This
tool reportedly allows Hyperliquid to facilitate “fast, secure, and
transparent transactions,” bridging the gap between centralized
exchanges (CEXs) and decentralized exchanges (DEXs).
Specifically, with the protocol’s ability to handle over 100,000
transactions per second and a latency of less than one second,
Hyperliquid addresses the performance limitations commonly
associated with other blockchains such as Solana (SOL) and Ethereum
(ETH). Related Reading: Bitcoin Breaks ATH Pushing Back Into Price
Discovery – BTC To $130K? HYPE’s tokenomics include a burn
mechanism to control supply and support price stability, a common
practice seen in tokens such as Shiba Inu (SHIB). A strict vesting
schedule is also in place to balance liquidity and mitigate selling
pressure. The token offers various utility options for
investors, including trading fee discounts, staking opportunities,
and governance participation. HYPE holders benefit from reduced
trading fees, which can significantly boost profitability, while
staking their tokens allows them to earn rewards or provide
liquidity in trading pools. New Listings And HyperEVM Launch
To Boost HYPE? Recent insights 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 has seen all-time
high in Circle’s stablecoin USDC deposits, indicating strong
demand, while auction prices have also reached unprecedented
levels, with significant purchases made by notable entities like
MON Protocol. The total amount of USDC held on Hyperliquid
has surged, showcasing robust liquidity. Moreover, many savvy
traders have invested millions in HYPE and are publicly supporting
the token, suggesting confidence in its future potential. Retail
investors have yet to enter the market significantly, as HYPE is
not yet available on Tier 1 centralized exchanges, this could be a
notable catalyst for its price in case of gathering significant
attention by these traders for the HYPE price. Related
Reading: XRP Price Targets $3.34 After Corrective Downtrend Within
Descending Channel Ericonomic has further drawn comparisons between
HYPE and Binance Coin (BNB), noting that HYPE holders enjoy a more
equitable distribution of fees, as all fees generated are directed
back to the Hyperliquid protocol. Additionally, the community
anticipates several upcoming catalysts, including new listings in
major crypto exchanges and the introduction of HyperEVM, which
could significantly enhance the platform’s capabilities. At the
time of writing, HYPE has consolidated at the $26.91 level
following a retracement from its record peak of $42, which was
reached on December 12. Despite this correction, the token
still reflects substantial gains of over 105% on a weekly basis,
accompanied by trading volumes of $342 million. Looking ahead, it
remains to be seen whether there will be sufficient catalysts to
support the token after its recent correction. Featured image
from DALL-E, chart from TradingView.com
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