HYPE price has pulled back in the past few days, moving from a high of $43.67 on March 18 to the current $35. Hyperliquid token remains about 70% above its lowest point this year, and its solid fundamentals suggest that it may continue rising in the near term.
Hyperliquid network is firing on all cylinders
Third party data shows that the Hyperliquid network is firing on all cylinders this year, a trend that may continue in the foreseeable future.
A good example of this is the Hyperliquid layer-1 network, which has continued adding assets in the past few weeks despite the ongoing performance in the crypto industry.
Hyperliquid’s stablecoin market capitalization has jumped to over $5.2 billion, its highest point since October last year and much higher than the year-to-date low of $4.4 billion.
Most of this growth is being driven by USDC and USDT whose supply has jumped to $4.91 billion and $163 million, respectively. The USDH stablecoin supply has risen to over $92 million.
More data reveals that the total value locked (TVL) in its platform has jumped to over $1.64 billion from the year-to-date low of $1.2 billion. Most of this growth is being driven by Kinetiq, Hyperliquid, Morpho, and Hyperlend.
Meanwhile, Hyperliquid’s perpetual futures platform continues to gain traction in the past few weeks as the US-Iran war has escalated. Its platform handled over $209 billion in transactions in March, up from $201 billion in February.
The network has handled over $203 billion in the last 30 days, much higher than the other three networks combined. Aster handled over $74.6 billion, while edgeX and Grvt handed over $76 billion and $41 billion, respectively.
Hyperliquid has benefited from the ongoing Iran war because of its oil futures contracts, which have become popular among investors, especially during the weekend when traditional marketplaces are closed.
Hyperliquid is even displacing other chains in terms of volume. While its network handled over $200 billion in March, all DEX protocols on Ethereum network handled over $40 billion, while Solana processed transactions worth over $50 billion in the same period.
Hyperliquid’s volume was higher than that of other chains like Ethereum, Solana, BSC Chain, Base, Arbitrum, and Polygon, combined.
The rising Hyperliquid volume has pushed its network fees higher. Its network fees rose to over $69.12 million, slightly higher than the $68 million it made in the previous month.
As a result, the HYPE token burn will continue in the near future. Data shows that the network has burned over 43 million tokens worth over $1.5 billion since its inception. It also continues to buyback its tokens in the same period.
These fundamentals explain why Grayscale recently filed for the HYPE ETF, which will likely be approved in the near term. Other companies like 21Shares and Bitwise have also filed for the HYPE ETFs.
HYPE price prediction: Technical analysis
Hyperliquid price chart | Source: TradingView
The three-day chart shows that the HYPE price has rebounded in the past few months, moving from a low of $20.5 in January to a high of $43.61.
It then pulled back to the current $35.23, its lowest level since March 11 this year. It is also hovering slightly above the 50% Fibonacci Retracement level.
The token has remained above the 50-day Exponential Moving Average (EMA) and is slowly forming a series of higher highs and higher lows.
Therefore, the token will likely bounce back in the near term, potentially to the year-to-date high of $43.61. A move above that level will point to more gains, potentially to the psychological level at $50.
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