Hyperliquid (HYPE) Dips After $59 Peak: Rebound Incoming?
Hyperliquid (HYPE) Dips After $59 Peak: Rebound Incoming?
Hyperliquid's native token, HYPE, reached a new high of $59.38 before experiencing a 4.31% dip, trading around $56 at press time. Despite the pullback, the project has seen significant institutional interest and ecosystem growth.
Institutional Accumulation of HYPE
DATs Fueling Demand
Institutions, particularly those establishing Digital Asset Treasuries (DATs), have been actively accumulating HYPE. These DATs now hold approximately 6% of the total circulating supply.
Key Factors Influencing Price Action
The recent bullish price movement appears to be driven by several factors:
- Institutional Inflow: Continued accumulation by DATs.
- DEX Trading Volume: Strong activity on the Hyperliquid DEX.
- Total Value Locked (TVL): Increasing TVL within the Hyperliquid ecosystem.
Treasury Holdings and Market Cap
Data from DefiLlama indicates that Hyperliquid Treasury Holdings represent 6.811% of the circulating supply, totaling around 18.43 million HYPE tokens. This substantial holding underscores the confidence institutions have in the project.
While only 27% of the total supply is currently unlocked, the treasury-held amount is significant, valued at $1.071 billion based on a circulating market cap of $15.20 billion. Token Terminal data shows HYPE’s fully diluted market cap reaching $58.5 billion.
Key Treasury Holders
- Hyperliquid Strategies (formerly Sonnet BioTherapeutics Holdings, Inc.): Holds 6.24% of the supply.
- Hyperion DeFi, Inc.: Holds 0.57% of the supply.
- Lion Group Holdings: Maintains a treasury balance of approximately 128,929 HYPE tokens.
DEX Performance and TVL Growth
Hyperliquid's DEX platform is demonstrating strong performance, challenging established exchanges.
Trading Volume Highlights:
- Perpetual Futures (last 30 days): $328 billion.
- Weekly DEX Volume: Increased by 47% to $8.91 billion.
- 24-Hour Trading Volume: $1.125 billion.
Perpetual futures trading volume significantly outweighs spot volume (20x greater), demonstrating leverage's impact on the platform's performance.
TVL Growth:
Total Value Locked (TVL) across protocols within the Hyperliquid chain is rising. The overall TVL stands at $9.25 billion, with Hyperlend contributing $631 million.
HYPE Price Analysis
HYPE's price recently achieved another all-time high (ATH) for the second consecutive day. The Bollinger Bands have widened, indicating increased volatility. Technically, the price broke above a rising wedge pattern, suggesting potential for further gains above $60.
Conclusion
Institutional accumulation, robust DEX trading volumes, and increasing TVL point to strong underlying fundamentals for Hyperliquid. While a recent dip occurred, the stage may be set for a potential rebound as institutions continue to show interest in HYPE. For projects seeking secure and reliable blockchain solutions, platforms like Codeum offer essential services like smart contract audits and KYC processes to ensure a trustworthy ecosystem.