Hyperliquid (HYPE) price continued its recent rally, hitting its highest level since November 20th as investors focused on the rising volume, network fees, and its entry into the fastest-growing prediction market. HYPE price jumped to $38, up by 85% from its lowest level this year. So, what next for the HYPE token?
Hyperliquid enters into the predictions market
The HYPE token price jumped sharply after the developers announced the support of HIP-4 proposal, which introduces Outcomes, its foray into the predictions market industry.
The launch comes as the predictions industry continues booming, with companies like Kalshi and Polymarket being the market leaders.
In a statement, the developers said that the launch will bring non-linearity, dated contracts, and an alternative form of derivative trading that does not involve liquidations. Outcomes are now being tested in the testnet ahead of the eventual launch.
HyperCore will support outcome trading (HIP-4). Outcomes are fully collateralized contracts that settle within a fixed range. They are a general-purpose primitive that are useful for applications such as prediction markets and bounded options-like instruments. There has been
The HIP-4 comes a while after the developers implemented the HIP-3 proposal, which has been highly successful. Data shows that this upgrade attracted over $1 billion in open interest in the last 24 hours.
These developments have led to a surge in volume in the network in the past few months. Data shows that the volume handled over $11.7 billion in the last 24 hours, much higher than Aster’s $5.7 billion and Lighter’s $5.4 billion.
Hyperliquid’s open interest rose to over $6 billion, up sharply from Aster’s $2.08 billion, while edgeX and Lighter’s $861 million and $1.1 billion, respectively.
Altogether, Hyperliquid network handled over $216 billion, much higher than Aster’s $141 billion, while Aster and Lighter handled over $141 billion and $105 billion, respectively.
More data shows that Hyperliquid’s network fees jumped to over $75 million in January this year, up sharply from December’s $68 million. Its revenue rose to $68.7 million from the previous month’s $60 million.
Soaring Hyperliquid revenue and fees are important because the network is taking actions to offset its token unlocks that have led to higher inflation over time. Data shows that 40% of the HYPE tokens have been unlocked.
The network does that by burning and buying back millions of tokens. It recently proposed burning 13% of the supply. Data shows that the network has burned over 580k tokens over time. It has also bought back tokens worth over $55.6 million tokens in the last 30 days.
HYPE price technical analysis
The daily timeframe chart shows that the HYPE price has rebounded in the past few weeks. It formed a double-bottom pattern at $22.32 and a neckline at $28.26, its highest level on January 6.
The token has moved above the 50% Fibonacci Retracement level at $34.47. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control.
The token has moved above the Major S&R pivot point of the Murrey Math Lines tool. Therefore, the most likely scenario is where the token continues rising, with the next key resistance level to watch being at the psychological level at $45, which is along the Strong, Pivot, Reverse level of the Murrey Math Lines tool.
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