Hyperliquid (HYPE) Under The Lens: These 3 Metrics Point To Severe Undervaluation

Hyperliquid (HYPE) has experienced a major 21% price increase over the past week, sharply contrasting with many of the largest cryptocurrencies, which have been trading in negative territory. Despite this positive momentum, a new report suggests that HYPE may still be undervalued compared to its potential.

Hyperliquid Reaches Record-Breaking Levels

According to a Thursday post from Hyperliquid Daily on the social media platform X (previously Twitter), several factors underscore why HYPE remains undervalued at its current price. 

First, the trading volume for Hyperliquid 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 crude oil perpetuals has surged from approximately $21 million to $1.39 billion daily since tensions between Iran and Israel began, making it the second most traded asset, surpassing even Ethereum (ETH).

Additionally, the cumulative protocol revenue has crossed the $1.039 billion mark, with an annualized run-rate of around $664 million based on a 30-day revenue of $54.4 million. 99% of all fees are directed towards buybacks and burns of HYPE through the Assistance Fund. 

The report claimed that with this data recorded over the past month, Hyperliquid is evolving from its role as a leading on-chain derivatives platform to a more expansive decentralized finance (DeFi) Layer-1 (L1) solution. 

Hyperliquid has also seen recent trading in real-world assets (RWA) reach new heights. Over the past two weeks, RWA trading has consistently broken records, exceeding $1.3 billion in open interest and achieving over $1.4 billion in weekend volume. The Hyperliquid team wrote on X:

When traditional markets are closed, Hyperliquid is the premier venue for 24/7 price discovery on oil, metals, indices, and other essential assets. This is an important step towards housing all of finance.

HYPE’s Technical Outlook

On the technical side, market analyst TraderJB has commented on HYPE’s performance, noting that its price action is cleaner and more favorable compared to approximately 95% of other cryptocurrencies like Bitcoin (BTC), which have exhibited a more erratic behavior after failing to surpass its nearest resistance wall at $74,000. 

Looking ahead, TraderJB predicts that the current price movement from $25 to its present trading level of $36.90 resembles an inverted zigzag formation nearing its supply limit. 

For Hyperliquid’s native token to maintain the upward momentum witnessed since the end of last month, the analyst said it will need to produce additional upward waves while ensuring that the price does not fall below $20.80, as this could suggest a reversal in trend.

Featured image from OpenArt, chart from TradingView.com