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A new altcoin, Hyperliquid (HYPE), is quickly making waves in the cryptocurrency market, as it is now the 28th largest cryptocurrency by market cap. This rise has seen HYPE surpassed Fixed currencies Such as Near Protocol (NEAR), which rose 204% in value in just two weeks, reaching a market capitalization of approximately $8.93 billion.
Explore the Hyperliquid Protocol
Examining altcoin offerings is essential to better understand the increased interest it has received over the past week.
HYPE is the native token of Hyperliquid, a layer-one (L1) blockchain that uses HyperBFT technology. This tool It is said Hyperliquid allows for the facilitation of “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 a latency of less than one second, Hyperliquid addresses the performance limitations typically associated with other blockchains such as Solana (SOL) and Ethereum (eth).
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HYPE tokens include a burn mechanism to control supply and support price stability, a common practice seen in tokens like the Shiba Inu (SHIB). A strict maturity schedule has also been put in place to balance liquidity and ease selling pressures.
The token offers several facility options to investors, including trading fee discounts, staking opportunities, and participation in governance. HYPE holders benefit from the discount Trading feeswhich can significantly enhance 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 cryptocurrency analyst Ericonomic also highlighted several compelling reasons to remain bullish on HYPE despite any short-term correction for the top-tier altcoin.
The analyst notes that Hyperliquid saw Circle’s all-time high Stable coin USDC deposits indicate strong demand, while auction prices have also reached unprecedented levels, with significant purchases made by prominent entities such as MON Protocol.
The total amount of USDC held on Hyperliquid has increased, showing strong liquidity. Moreover, many savvy traders have invested millions in HYPE and are publicly backing the token, indicating confidence in its future potential.
Retail investors have not entered the market in a big way yet, as HYPE is not yet available at the first level Central exchangesThis could be a notable catalyst for its price if HYPE price attracts significant interest from these traders.
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Ericonomic also made comparisons between HYPE and Binance Coin (BNB), noting that HYPE holders enjoy a more equitable distribution of fees, as all fees generated are directed to the Hyperliquid protocol.
Additionally, the community anticipates several upcoming catalysts, including new listings on major cryptocurrency exchanges and the introduction of HyperEVM, which could significantly enhance the platform’s capabilities.
At the time of writing, HYPE is consolidated at $26.91 after rebounding from its record peak of $42, which was reached on December 12.
Despite this correction, the token still reflects significant gains of over 105% on a weekly basis, accompanied by Trading volumes With a value of $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 of DALL-E, chart from TradingView.com
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