Hyperliquid (HYPE) Under the Spotlight: 3 Key Indicators of Potential Undervaluation

Hyperliquid (HYPE) has seen an impressive 21% rise in price over the past week, standing in stark contrast to many prominent cryptocurrencies that have declined. Despite this upward trend, a recent report indicates that HYPE may still be undervalued relative to its growth potential.

Key Takeaways

HYPE has risen by 21% in the past week, while other major cryptocurrencies are struggling.
Hyperliquid's trading volume has peaked at $6.48 billion, with significant growth in crude oil and real-world assets (RWA).
The platform is evolving from an on-chain derivatives operator to a broader decentralized finance solution, with protocol revenue exceeding $1 billion.

Hyperliquid

Record-Breaking Achievements by Hyperliquid

In a Thursday post by Hyperliquid Daily on X (formerly Twitter), several factors were highlighted that suggest HYPE is undervalued at its current price.

Firstly, the trading volume for Hyperliquid has reached historic highs. The asset has a 24-hour perpetual trading volume of $6.48 billion, with open interest at $6.41 billion.

Interestingly, trading in crude oil perpetuals has surged from around $21 million to an impressive $1.39 billion daily since the onset of tensions between Iran and Israel, making it the second most traded asset, outpacing even Ethereum (ETH).

Moreover, cumulative protocol revenue has surpassed $1.039 billion, translating to an annualized run-rate of roughly $664 million, based on a 30-day revenue of $54.4 million. A significant 99% of all fees are allocated to buybacks and burns of HYPE through the Assistance Fund.

The report indicated that, based on the data from the past month, Hyperliquid is transitioning from being a leading on-chain derivatives platform to a more comprehensive decentralized finance (DeFi) Layer-1 (L1) solution.

Additionally, recent trading in real-world assets (RWA) has reached notable levels. Over the last two weeks, RWA trading has consistently set records, surpassing $1.3 billion in open interest and achieving over $1.4 billion in weekend trading volume. The Hyperliquid team emphasized on X that:

"When traditional markets are closed, Hyperliquid is the premier venue for 24/7 price discovery on oil, metals, indices, and other essential assets. This is a crucial step toward consolidating all of finance."

The Technical Perspective on HYPE

From a technical standpoint, market analyst TraderJB has shared insights on HYPE’s recent performance, remarking that its price action appears cleaner and more favorable in comparison to about 95% of other cryptocurrencies, such as Bitcoin (BTC), which has shown erratic behavior after failing to break through its nearest resistance at $74,000.

TraderJB forecasts that the current price trajectory, moving from $25 to its present level of $36.90, resembles an inverted zigzag formation approaching its supply limit. To maintain the positive momentum seen since the end of last month, the analyst noted that HYPE needs to create additional upward movements without allowing the price to dip below $20.80, which could indicate a potential trend reversal.

Hyperliquid Technical Chart The daily chart illustrates HYPE’s rally toward the $36 mark for the first time in over a month. Source: HYPEUSDT on TradingView.com

Featured image from OpenArt, chart from TradingView.com.