Hyperliquid Token Surges to 50% Weekly Gains, Is There More Steam in HYPE Price Rally?

HYPE price rallied sharply this week as a wave of short liquidations and strong ETF demand pushed the token closer to its previous all-time high.

The token traded near $58 on Wednesday after gaining 17% over the past 24 hours. Trading volume also jumped 135% to $1.35 billion, reflecting rising speculative activity across spot and derivatives markets.

HYPE Price Nears Previous Record High

Following today’s upside, the HYPE price has reached closer to its previous all-time high of $60. As of now, the Hyperliquid token is trading at $58, with a market cap of $14.7 billion, and 135% upside in daily trading volume at $1.35 billion. This shows that the trader sentiment around HYPE remains bullish.

Market analyst platform ‘Evening Trader Group’ said Hyperliquid is approaching a potential new all-time high. According to the group, on-chain data shows some whale wallets are taking partial profits near resistance levels.

However, the larger accumulation wallets that originally built major positions in HYPE have reportedly continued holding their core allocations. The analyst noted that the HYPE price could soon enter the discovery phase if it successfully breaks past its previous all-time highs.

Hyperliquid Token On-Chain Metrics And Key Catalysts

Blockchain analytics firm Santiment reported that the HYPE price has surged above the $50 level for the first time in eight months. According to the analytics firm, funding rate data on May 18 and 19 showed a sharp rise in negative funding rates. This showed that traders were opening short positions while expecting a price decline.

However, HYPE continued moving higher, forcing many bearish traders to close positions through automatic liquidations. This short squeeze triggered further upside in the Hyperliquid token.

Santiment also noted that HYPE open interest remained elevated above $1.92 billion despite the liquidations. This shows that new traders are entering the market even as leveraged positions are getting wiped out.

Santiment noted that the recent bullish momentum around HYPE came amid the newly launched Hyperliquid ETFs from Bitwise and 21Shares. The launch of these products has raised the institutional demand for HYPE in the market.

The first U.S. spot Hyperliquid ETFs recorded $22.3 million in net inflows during their debut week. The strongest inflow day came on Tuesday, when THYP from 21Shares and BHYP from Bitwise collectively saw $11 million in fresh inflows.

Bitwise Executive Praises Hyperliquid Token

The solid performance of the Hyperliquid DEX platform has grabbed the attention of some of the top industry players. The Coinbase USDH deal last week led to a 20-25% in revenue for the platform. Furthermore, the DEX platform also reported $50 million in revenue.

Bitwise CIO Matt Hougan believes that the market may be undervaluing Hyperliquid by viewing it primarily as a perpetual futures exchange rather than a broader crypto “super app” ecosystem. He wrote:

Hyperliquid is not a crypto app. It’s a super app. It’s not targeting the $3 trillion crypto economy. It’s targeting the $600 trillion global asset market. Investors are valuing it as one thing. It’s the other.

According to Bitwise, Hyperliquid could be one of the most undervalued assets in the crypto market, considering its fundamentals and revenue generation. The firm estimated that Hyperliquid is currently producing between $800 million and $1 billion in annualized revenue.