HYPE Frenzy: New Altcoin’s 200% Surge Vaults Past NEAR’s Market Cap

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