Hyperliquid Surges to 4th Largest Chain by FDV, $100 Incoming for HYPE?

Key Insights:

• Hyperliquid rises to 4th largest blockchain by FDV, surpassing rivals.
• Strong buyback strategy boosts $HYPE token, signaling growth potential.
• Organic traction, community approach fuel Hyperliquid’s market ascent.

Hyperliquid recently became the fourth-largest blockchain by fully diluted valuation (FDV), trailing only Ethereum, Binance Coin (BNB), and Solana. The rise occurred without venture capital funding, spotlighting the blockchain’s traction among retail and community users.

The network’s valuation surged to $38.2 billion in FDV, despite a circulating market cap of just $12.7 billion. This gap suggests high investor expectations around token unlocks, supply expansion, and long-term platform adoption.

Ethereum, BNB, and Solana Dominating

Ethereum remains the largest blockchain by FDV with an impressive $306 billion valuation, which matches its market cap. This alignment suggests a stable and well-established market position. Similarly, Binance Coin (BNB) holds the second spot with both its FDV and market cap valued at $94 billion. The consistency in BNB’s FDV and market cap suggests that market sentiment aligns closely with its total supply in circulation.

Solana, in third place, shows a slightly different picture. Its FDV stands at $88.3 billion, higher than its current market cap of $77.2 billion. This discrepancy indicates strong speculative interest in Solana, with investors seeing potential for significant future growth as more of its total supply enters circulation.

Hyperliquid’s Standout Performance

Hyperliquid’s rise is particularly notable given that it has achieved this status without the backing of any venture capital. Its FDV of $38.2 billion puts it in a competitive position, surpassing several established platforms like Sui ($9.5 billion FDV) and Cardano ($27.0 billion FDV). The blockchain’s success is driven by an effective tokenomics model, one that includes a strong buyback mechanism. Additionally, Hyperliquid’s community-first approach has fostered organic growth, establishing it as a contender in the highly competitive blockchain space.

Despite its relatively modest market cap of $12.7 billion, Hyperliquid’s FDV suggests a strong belief in its future potential. The blockchain’s current trajectory points toward substantial growth, with analysts observing a positive outlook for its native token, HYPE. This optimism is supported by the ongoing community engagement and the growing interest in Hyperliquid’s ecosystem.

Price Action and Market Sentiment Around HYPE

Analyst Steve’s chart analysis for the HYPE token reveals a clear upward momentum, with recent price action bouncing off a support zone around $40.

This indicates that HYPE could be consolidating, setting the stage for a potential breakout. The technical indicators suggest that the token may soon surpass the $45 mark, with a target of $100 on the horizon. For those looking for entry points, analysts recommend buying under $70, as there could be substantial price movement before the token reaches these higher levels.

The HYPE token is currently hovering around $38, and if it fails to maintain support at this level, there could be a pullback. An analyst on X suggests that a correction to the $27-$31 range is possible, which aligns with key Fibonacci retracement levels.

These levels have historically been strong areas of support, and a dip to this zone would indicate a healthy market correction. If the support holds, the token could rebound and test higher resistance levels between $42 and $45.

Nevertheless, the market position of HYPE is bullish in the long term. Since March, a trend of regular higher lows has been noted in the token, and this is a good sign in the long term. In case the price maintains its position above the level of 27-$31, analysts expect the price to continue growing in the upward direction, which may lead to the HYPE reaching the resistance area at $45.

Active Buy-back implies Optimism

A factor that may be taken as a sign of strength of Hyperliquid is its buyback activity. In the recent past, Assistance Fund has repurchased an additional 2 million of HYPE tokens adding more strength to investor confidence.

Analysts viewed the move as a strategic commitment to value preservation. The repurchases not only support price action but also encourage market trust as Hyperliquid scales operations.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.