Hyperliquid's HYPE token staged a strong breakout on Saturday, continuing a trend that started in January when it bottomed at $20. It surged to a record high of $67, and a combination of strong fundamentals and technicals points to an eventual surge to $100.
HYPE Price Has Formed a Multi-Month Cup and Handle Pattern
Hyperliquid's token has slowly formed the highly bullish cup & handle pattern, meaning that it has more upside ahead. This cup started forming in September last year when it hit its then all-time high of $59.45. It then made a slow recovery and eventually bottomed out at $20.
Since then, the coin has slowly completed the second half of the cup. It then formed a small handle in May and made a strong bullish breakout. Subtracting the lower side of the cup from its upper side gives it a depth of $40. Adding this amount to its upper side gives it a target of $100.
HYPE price chart | Source: TradingView
Hyperliquid Has Become The Biggest Player in the DeFi Industry
For a long time, protocols like Uniswap (CRYPTO: UNI) and PancakeSwap (CRYPTO: CAKE) were the most dominant players in the decentralized finance industry.
Today, they have been overtaken by Hyperliquid, a network best-known for its perpetual futures products. Perpetual futures are similar to traditional ones, with the only difference being that they don't have an expiration date.
DeFi Llama data shows that Hyperliquid's platform processed perpetual futures worth over $187 billion in the last 30 days and $44 billion in the last 7 days. These are huge numbers for a platform that is not available in the United States.
In contrast, Uniswap handled transactions worth $36 billion, while PancakeSwap, Aerodrome, and BisonFi handled $15 billion, $6 billion, and $5.9 billion, respectively.
Hyperliquid has become highly popular because of its crude oil futures products. Unlike most traditional platforms, it makes it possible for people to trade oil and other assets during the weekend.
While Wall Street is waiting for the SpaceX IPO, Hyperliquid is already offering its futures product. SpaceX stock on its platform had nearly $60 million in open interest, while OpenAI had $3.4 million.
In addition to its perpetual futures marketplace, Hyperliquid is also a top layer-1 network. Its platform has over $1.6 billion in total value locked, with its stablecoin market cap soaring to over $6.3 billion.
All these aspects have made it highly profitable, generating over $900 million in fees in the last 12 months. It spends most of these fees in token burns and buybacks. Indeed, data shows that its burns exceed its token emissions, making it a deflationary token.
These metrics explain why the recently launched HYPE ETFs are seeing strong growth. They have already crossed $109 million in cumulative inflows and now hold $136 million in assets. This rally will continue when Grayscale launches its HYPE ETF soon.
Image: Shutterstock
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