New Altcoin’s 200% Surge Vaults Past NEAR’s Market Cap
A new altcoin, Hyperliquid (HYPE), is quickly making waves in the cryptocurrency market and is currently ranked 28th by market capitalization. The rise of HYPE has transcended Established coins Take Near Protocol (NEAR), for example, its value surged 204% in just two weeks, bringing its market capitalization to approximately $8.93 billion.
Explore the Ultraliquid Protocol
Examining the altcoin’s offerings is crucial to better understand the growing attention it has received over the past week.
HYPE is the native token of Hyperliquid, a Layer-1 (L1) blockchain utilizing HyperBFT technology. this tool It is said Allowing Hyperliquid to facilitate “fast, secure and transparent trading”, bridging the gap between centralized exchanges (CEX) and decentralized exchanges (DEX).
Specifically, with the protocol’s ability to process over 100,000 transactions per second and sub-second latency, Hyperliquid solves the problem of competing with other blockchains such as Solana (SOL) and Ethereum (Ethereum).
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HYPE’s token economics include a burn mechanism that controls supply and supports price stability, a common practice in tokens such as Shiba Inu (SHIB). Strict redemption schedules are also in place to balance liquidity and mitigate selling pressure.
The token offers investors a variety of practical options, including trading fee discounts, staking opportunities, and governance participation. HYPE holders benefit from reduced Transaction feeswhich can significantly increase profitability, while staking their tokens allows them to earn rewards or provide liquidity in trading pools.
Will new listings and HyperEVM launch drive hype?
The latest insights from crypto analyst Ericonomic also highlight several compelling reasons to remain bullish on HYPE despite the short-term correction in layer-1 altcoins.
Analysts pointed out that Hyperliquid sales at Circle have reached record highs. Stablecoin USDC deposits indicate strong demand, while auction prices have reached unprecedented levels, with high-profile entities such as MON Protocol making large purchases.
The total amount of USDC held on Hyperliquid has surged, and liquidity is strong. Additionally, many savvy traders have invested millions of dollars in HYPE and publicly supported the token, demonstrating confidence in its future potential.
Retail investors have not yet entered the market in large numbers because HYPE has not yet appeared on the primary market Centralized exchangeif these traders pay significant attention to the price of HYPE, this could become a significant catalyst for its price.
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Ericonomic further compared HYPE to Binance Coin (BNB), noting that HYPE holders enjoy a fairer distribution of fees as all fees incurred are returned directly 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.
As of this writing, HYPE is consolidating at $26.91 after retracing its all-time high of $42 reached on December 12.
Despite this correction, the coin is still showing massive weekly gains of over 105%, while trading volume $342 million. Looking ahead, it remains to be seen whether there will be enough catalysts to support the coin following the recent pullback.
Featured images from DALL-E, charts from TradingView.com
