Hyperliquid Altcoin is trending in the Nigerian X space as the token crossed a benchmark of $10 billion market capitalization recently.
The Token which is the native crypto asset of the Hyperliquid platform surged by 129% in the past week touching new price levels and attracting investors.
Hyperliquid surged to the top 20 crypto assets by market capitalization yesterday hitting a $10 billion market capitalization.
However, at the time of the report, the token has retracted by 19.2% in the last 24 hours. Its current price is $27.70 dropping from $34.49 yesterday.
The layer one blockchain, Hyperliquid, launched its native token, HYPE, just three weeks ago and has followed a bullish trajectory. As a result, the HYPE price has risen 977% since then, impressing the community.
At present, the HYPE is under a minor consolidation, currently trading at $27.70 with a 50% increased trading volume of $655.01M
Hyperliquid Surging despite not being listed by top exchanges
Hyperliquid’s surge in price comes amid the token not being listed by top crypto exchanges yet. Hyperliquid is still missing from top exchanges like Binance, Coinbase, and OKX.
The airdrop of its tokens was successful but it is yet to be listed by top exchanges.
Hyperliquid’s Buyback Mechanism Behind Surge in Price
Hyperliquid surge can be attributed to its innovative Buyback mechanism which invests funds raised from transaction fees to buying back Hyperliquid tokens.
- This feature is highly appreciated by investors who are seeing the benefit of it in the hyper-liquid ecosystem.
- The L-1 blockchain network has introduced a fee-to-buyback mechanism, which utilizes the 100% fees of the trades to purchase tokens. This buyback eventually creates buying pressure on the token, pumping the price.
- Hyperliquid ecosystem invests every $10,000 revenue it makes in buying back HYPE tokens.
This phenomenon was explained by Crypto analyst @Cryptocondom in an X post.
“ $HYPE is outperforming $ETH due to its buyback mechanism. Approx every $10k in revenue is directed to the Assistance Fund to buy back $HYPE. $3m was spent buying $HYPE in the last 24 hours. Yesterday, @HyperliquidX did $16b in notional perp volume. That is 30% of the volume of @binance I expect a rapid re-rating once the market stabilizes.”, The Analyst explained.
Buying pressure is tied to increased demand therefore increasing the price of crypto assets.
What to Know
- Additional reports reveal that the Hyperliquid platform has completed $16B in notional perpetual volume, which is almost 30% of the volume of Binance. With this, many users have called Hyperliquid ‘the decentralized Binance,’ where its lower perpetual fees and many other factors constantly increase demand.
- Surprisingly a few traders have begun urging other blockchain networks to follow similar features, especially Ethereum, as the ETH price is struggling on the charts.
