A new altcoin, Hyperliquid (HYPE), is rapidly making waves in the cryptocurrency market, now ranking as the 28th largest cryptocurrency by market capitalization. This ascent has seen HYPE surpass established coins like Near Protocol (NEAR), with its value soaring by 204% in just two weeks, bringing its market capitalization to around $8.93 billion.
Exploring The Hyperliquid Protocol
Examining the altcoin’s offerings is essential to better understanding the increased attention it has garnered over the past week.
HYPE is the native token of Hyperliquid, a Layer-1 (L1) blockchain that utilizes HyperBFT technology. This tool reportedly allows Hyperliquid to facilitate “fast, secure, and transparent transactions,” bridging the gap between centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Specifically, with the protocol’s ability to handle over 100,000 transactions per second and a latency of less than one second, Hyperliquid addresses the performance limitations commonly associated with other blockchains such as Solana (SOL) and Ethereum (ETH).
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HYPE’s tokenomics include a burn mechanism to control supply and support price stability, a common practice seen in tokens such as Shiba Inu (SHIB). A strict vesting schedule is also in place to balance liquidity and mitigate selling pressure.
The token offers various utility options for investors, including trading fee discounts, staking opportunities, and governance participation. HYPE holders benefit from reduced trading fees, which can significantly boost profitability, while staking their tokens allows them to earn rewards or provide liquidity in trading pools.
New Listings And HyperEVM Launch To Boost HYPE?
Recent insights from crypto analyst Ericonomic have also highlighted several compelling reasons to remain bullish on HYPE despite any short term correction for the Layer-1 altcoin.
The analyst notes that Hyperliquid has seen all-time high in Circle’s stablecoin USDC deposits, indicating strong demand, while auction prices have also reached unprecedented levels, with significant purchases made by notable entities like MON Protocol.
The total amount of USDC held on Hyperliquid has surged, showcasing robust liquidity. Moreover, many savvy traders have invested millions in HYPE and are publicly supporting the token, suggesting confidence in its future…
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