Hyperliquid (HYPE) saw a significant increase of 21% over the past week, contrasting sharply with most of the largest cryptocurrencies, which are trading in negative territory. Despite this positive momentum, a new report suggests that HYPE may still be undervalued relative to its potential.
Hyperliquid reaches record levels
According to an article published Thursday by Hyperliquid Daily on social media platform X (formerly Twitter), several factors highlight why HYPE remains undervalued at its current price.
First, Hyperliquid trading volume has reached unprecedented levels. The asset’s 24-hour perpetual volume stands at $6.48 billion, with open interest recorded at $6.41 billion.
Notably, trading in perpetual crude oil has increased from around $21 million to $1.39 billion per day since tensions between Iran and Israel began, making it the second most traded asset, surpassing even Ethereum (ETH).
Additionally, the protocol’s cumulative revenue crossed the $1.039 billion mark, with an annualized rate of around $664 million based on 30-day revenue of $54.4 million. 99% of all fees go toward HYPE buybacks and burns through the Relief Fund.
The report claims that with this data recorded over the past month, Hyperliquide is evolving from its role as a leading on-chain derivatives platform to a more expansive Layer-1 (L1) decentralized finance (DeFi) solution.
Hyperliquid has also seen recent real-world asset (RWA) transactions reach new highs. Over the past two weeks, RWA trading has consistently broken records, surpassing $1.3 billion in open interest and reaching over $1.4 billion in weekend volume. The Hyperliquide team wrote on X:
When traditional markets are closed, Hyperliquide is the first place to discover prices for oil, metals, indices and other essential assets, 24/7. This is an important step towards hosting all of finance.
HYPE Technical Outlook
On the technical side, market analyst TraderJB commented on HYPE’s performance, noting that the price action is sharper and more favorable compared to around 95% of other cryptocurrencies like Bitcoin (BTC), which have shown more erratic behavior after failing to break above 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 near its supply limit.
For Hyperliquid’s native token to maintain the bullish momentum seen since late last month, the analyst said it will need to produce additional bullish waves while ensuring that the price does not fall below $20.80, as this could suggest a trend reversal.
Featured image from OpenArt, chart from TradingView.com
