Hyperliquid traders increasingly prefer non-crypto assets (HIP-3) such as oil, gold and silver over crypto assets like Bitcoin.
According to recent data, HIP-3 has a solid and massive base, with user retention of 64%, compared to just 27% for crypto assets.
Keisan, crypto analyst quoted The extreme volatility of crypto and “per-friendly” leverage relative to options contracts are among the main drivers of “sticky” activity among HIP-3 users.
Traditional assets are more pleasant to trade than cryptocurrencies, which suffer from extreme volatility, market manipulation and fraudulent tokens.
He added that a loyal user base would lead to greater liquidity and more tradable assets. Eventually, this leads to more trading activity and HYPE redemptions, which indirectly increases the value of the altcoin.
HIP-3 volumes explode
The ability to trade different assets (traditional and crypto) on a single unified platform 24/7 made Hyperliquid one of the winners of the West Asian crisis.
Last week, HIP-3 accounted for for 33% ($15.1 billion) of the overall hyperliquid trading volume. It was just behind Bitcoin, which brought in $18.4 billion (40%).
Year-to-date (YTD), the dominance of HIP-3 or RWA (real-world tokenization) has increased from 5% to over 30%, highlighting strong adoption and momentum.
In fact, according to BitMEX Exchange founder Arthur Hayes, HIP-3 is now readers almost 10% of the overall amount of fees collected on the platform.
According to Hayes, mass adoption of Hyperliquid as a multi-asset trading platform would likely take HYPE to $150.
Can HYPE bulls reclaim $50?
Interestingly, HYPE’s bullish momentum improved during the Iran crisis. Since its debut, HYPE has increased by 57%, from $26 to $41.
Measured from the January low of $20, HYPE has doubled or increased by 100%. Thus, it can be said that the platform and altcoin became the biggest winners of the entire episode.
However, Colin Basco, research analyst at Coinbase, although bullish on the altcoin, believes this $42 as key resistance must be breached for a sustained rally. If this immediate hurdle were cleared, the next levels to watch would be $46 and the psychological level at $50.
Final summary
- Hyperliquid’s HIP-3 segment now has a relatively stronger and more loyal user base with over 60% trader retention compared to normal crypto traders.
- The Coinbase analyst believes that an extended rally up to $50 is possible, but the bulls must first break through the $42 and $46 resistance levels.
