Author: thedefinvestor Translator: Shan Ouba, Jinse Finance
Why did HYPE surge? Over the past 3 days, HYPE has become one of the best-performing tokens.
After several weeks of decline along with most altcoins, the price of HYPE surged from $22 to $32, an increase of nearly 50%. For a token with a market capitalization of $7 billion, this performance is remarkable.
Frankly, I was initially surprised by this surge. After some research, I've figured out the possible reasons behind it.
This entity had been heavily selling HYPE for the past few weeks, and on January 27th, it finally sold all of its tokens.
With this selling pressure completely gone, many Hyperliquid supporters entered the market to buy HYPE, which is the main reason why HYPE rose by more than 20% on January 27th.
HIP-3 is a major upgrade to Hyperliquid, supporting permissionless perpetual contract creation. Based on this feature, all developers working within the Hyperliquid ecosystem can issue customized perpetual contracts for assets not yet listed on the exchange.
Currently, most developers have launched perpetual contracts related to stocks and commodities using HIP-3, and market demand for these contracts is extremely strong.
In less than five months since its launch, HIP-3 has seen its derived stock, ETF, and commodity trading pairs surpass $2 billion in daily trading volume! Some might ask, what are the benefits for HYPE holders? Primarily in two aspects: Transaction fee revenue: Despite HIP-3 trading fees being 90% lower than other markets, Hyperliquid still earns $100,000 to $200,000 daily. Trading code auction revenue: Developers wishing to list on the HIP-3 trading market must purchase exclusive trading codes, typically priced equivalent to $10,000 to $70,000 of HYPE.
This shows that the increased adoption of HIP-3 has a direct positive impact on HYPE. Next, I will introduce another major achievement of Hyperliquid recently, which is perhaps the most noteworthy, and I will also share my views on the overall market trend.
Hyperliquid founder Jeff stated on the X platform that the liquidity of Bitcoin perpetual contracts on the platform has now surpassed that of Binance.
Hyperliquid founder Jeff stated on the X platform that the liquidity of Bitcoin perpetual contracts on the platform has now surpassed that of Binance.
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