Hyperliquid's HYPE Approaches All-Time Highs: A Closer Look at Its Rapid Growth

Hyperliquid [HYPE]

Hyperliquid's native token, HYPE, is witnessing significant market activity, with considerable inflows and a substantial increase in revenue. As the token nears its all-time high, market sentiment remains bullish. This article examines Hyperliquid's growth and the technical factors influencing its price trajectory.

Key Takeaways

Weekly inflows reached $25 million, with HYPE's revenue hitting $20 million, making it the third highest-earning protocol.
A price move beyond $48 could pave the way for HYPE to reach $59, provided the Money Flow Index (MFI) supports bullish momentum.
HYPE experienced a 7% daily gain and a remarkable 31% surge over the previous week, trading around $47 as it nears its previous peak.

Hyperliquid Attracts New Liquidity

In just the last week, Hyperliquid gained $25 million in stablecoin inflows, positioning it among the top fifteen chains. This influx coincides with heightened network engagement, as its Layer 1 Total Value Locked (TVL) surpassed $2.41 billion, making it the ninth largest blockchain overall and seventh within Layer 1 protocols.

Stablecoin change

Source: Lookonchain
The growth is particularly notable within its perpetual trading protocol, which mirrored this inflow trend. According to Lookonchain, the Perpetual Volume soared by 35.9%, reaching an impressive $58.08 billion during this time. For context, two other major perpetual decentralized exchanges (DEXs) saw outflows, with Aster’s volume decreasing by 0.36%.

Profits Soar for Protocols and Users

Moreover, Lookonchain highlighted that the increase in Hyperliquid’s Perpetual Volume corresponded with a surge in revenue, which hit a record of $20.19 million last week. This positioned Hyperliquid as the third-highest revenue-generating protocol in the market.

Interestingly, Hyperliquid maintained its status as the most profitable protocol when excluding stablecoin issuers like Tether and Circle.

Protocol revenue

Source: Lookonchain
In addition, HYPE stakers received a total of $90.07 million in rewards this month, indicating strong confidence among long-term holders and reducing short-term selling pressure. This combination of growing revenue and staking rewards enhances the bullish outlook for HYPE.

Chart Analysis Indicates Potential for Reaching Highs

The technical analysis for HYPE reveals that the altcoin is trading near a critical resistance zone between $47.36 and $48.88. This price range has previously led to declines for HYPE on four different occasions. If the token fails to break through this resistance, it may slide below the recently breached descending resistance line.

HYPE price analysis

Source: TradingView
Notably, the Money Flow Index (MFI) was recorded at 63.37, indicating sustained inflows and suggesting that investors may see the asset as undervalued. A successful breakout above the resistance could clear the way toward its previous all-time high of approximately $59. Conversely, failure to exceed this point might lead to a drop below the recently reclaimed descending resistance line.