Hyperliquid (HYPE) has experienced a huge 21% price increase over the past week, which is in stark contrast to many of the biggest cryptocurrencies that have been trading in negative territory. Despite this positive momentum, a new report shows that the HYPE still pales in comparison to its potential.
Hyperliquid reaches record levels
According to a Thursday post from Hyperliquid Daily on social media platform X (formerly Twitter), several factors highlight why HYPE remains undervalued at its current price.
First, the trading volume for Hyperliquid has reached an unprecedented level. The current 24-hour volume of assets is $6.48 billion and its open interest is $6.41 billion.
Notably, crude oil trading has increased from around $21 million to $1.39 billion per day since the outbreak of tensions between Iran and Israel, making it the second most traded asset, surpassing even Ethereum (ETH).
Additionally, the protocol’s cumulative revenue exceeded $1.039 billion, an annualized pace of nearly $664 million based on 30-day revenue of $54.4 million. 99% of all payments are directed to buybacks and burn HYPE through the Relief Fund.
With this data recorded over the past month, Hyperliquid is transitioning from its role as a leading on-chain derivatives platform to a broader decentralized finance (DeFi) Layer-1 (L1) solution, the report stated.
Hyperliquid also saw recent trading of real assets (RWA) reach new highs. Over the past two weeks, RWA trading has consistently broken records, with $1.3 billion in open interest exceeding $1.4 billion. The Hyperliquid team at X wrote:
When traditional markets are closed, Hyperliquid is the best place to discover 24/7 prices on oil, metals, indices and other important assets. This is an important step on the way to housing all finances.
HYPE technical perspective
On the technical side, market analyst TraderJB commented on HYPE’s performance, noting that its price action is cleaner and more favorable compared to about 95% of other cryptocurrencies such as Bitcoin (BTC), which showed erratic behavior after failing to break through its nearest resistance wall at $74,000.
Looking ahead, TraderJB predicts that the current price movement from $25 to its current trading level of $36.90 resembles an inverse zigzag formation that is near its maximum.
For the original Hyperliquid indicator to maintain the upward momentum from the end of last month, the analyst said that it needs to generate additional upside waves and ensure that the price does not fall below $20.80, as this may indicate a trend reversal.
Featured image from OpenArt, chart from TradingView.com
