"Why HYPE Could Outperform SOL: An Analytical Perspective"

Hyperliquid HYPE

As the cryptocurrency market evolves, new narratives emerge, especially around equity perpetual contracts (equity perps). Novel platforms like Hyperliquid (HYPE) are gaining traction, potentially positioning them to challenge established cryptocurrencies such as Solana (SOL). This article examines the current dynamics between HYPE and SOL, including market potential, speculative interests, and the future outlook for both.

Key Takeaways

The growing interest in equity perpetual contracts could benefit HYPE markets, similar to Robinhood.
According to Polymarket, HYPE may struggle to exceed SOL’s market cap by 2025.
Many blockchains are competing to redefine “Internet capital markets” by integrating traditional finance (TradFi) offerings such as equity trading.
Solana has an advantage with its early implementation of on-chain stocks or “tokenized stocks.”
HYPE is making strides in this space with offered trading options on major assets like Tesla and Nvidia, leveraging up to 20X.

HYPE vs SOL

Hyperliquid recently launched its Nasdaq-like index, XYZ100, which reported a trading volume of $55 million at the time of writing. Daniel Cheung, Co-Founder of VC Syncracy Capital, remarked on HYPE's rising importance, expressing confidence that it could eventually surpass SOL.

Can HYPE Surpass SOL in Fully Diluted Valuation (FDV)?

As of the latest reports, Solana has a Fully Diluted Valuation (FDV) of $125 billion, with each SOL token priced at $204. In contrast, HYPE has an FDV of approximately $48 billion, trading around $48 per token—a gap of about four times.

Analysts suggest HYPE could potentially reach prices of $70 or $100 by 2025, with Polymarket giving a 39% and 16% likelihood of reaching these targets, respectively. If SOL's value remains stable, a rise in HYPE to $70 or $100 would only give it an FDV of $70 billion or $100 billion, insufficient to exceed SOL's current valuation of $125 billion in the near term.

Rising Speculation Around HYPE

When examining speculative interest, SOL currently leads due to strong institutional backing illustrated by its $9.83 billion in Open Interest (OI), marking a 5% increase in just 24 hours. Comparatively, HYPE has approximately $1.96 billion in speculative interest, a notable rise of about 8% within the same timeframe.

While HYPE shows growth in speculation as the market rebounds, SOL still dominates in terms of leveraged trading opportunities.

HYPE vs SOL

Additionally, HYPE's recent listing on Robinhood has bolstered its recovery. However, crypto analytics firm Nansen indicates that "Smart Money" remains net short on HYPE, which could act as either a catalyst for growth or a potential trap. Nevertheless, HYPE recently stabilized around $45, and if it holds this support, it may pave the way for bullish momentum.

Hyperliquid SOL

Source: HYPE/USDT, TradingView