HYPE Price Prediction: How Hyperliquid Crypto Stayed Strong in Crash

HYPE price held steady during the recent crypto market crash. Hyperliquid crypto was trading at $32.55 on Saturday, up 60% from its January low.

Other popular cryptocurrencies like Bitcoin, Ethereum, and XRP hover near their lowest levels. They trade at prices not seen in months or even years.

Hyperliquid Crypto Held Steady as it Regained Market Share in the Perpetual Futures Industry

Hyperliquid crypto token has performed well in recent weeks. The network regained market share in the perpetual futures market, driving its momentum.

Data compiled by DeFiLlama shows that its volume has jumped sharply in the past few weeks. Also, it has overtaken other emerging networks.

Hyperliquid’s trading volume climbed to more than $258 billion in the past 30 days. This surge extends the recovery trend that began in December last year.

In contrast, Aster, the perpetual DEX network backed by Binance’s Changpeng Zhao, handled over $147 billion in the same period. Lighter, the fast-growing network, handled over $118 billion, while edgeX processed transactions worth over $115 billion.

Aster and Lighter briefly surpassed Hyperliquid in Q4. The latest growth shows Hyperliquid has regained strength.

Hyperliquid’s growth is mostly because of its innovation and the vast number of assets it offers on its platform. For example, it has become a major player in the silver trading industry. At one point, open interest soared past $1 billion.

Hyperliquid is Moving Into the Predictions Market

Meanwhile, the HYPE price did well during the crypto market crash due to the recently announced HIP-4 proposal. This will push it into the fast-growing predictions market.

The prediction market has grown at an exponential pace in recent months. Polymarket and Kalshi currently hold the largest share of this expanding sector.

Hyperliquid believes that there is an opportunity for a decentralized platform for the prediction market industry. Outcome will run on the HyperCore engine and will allow users to bet using leverage.

Analysts believe that this new feature could lead to substantial growth as major news events rise. A good example of this is the upcoming IPOs of companies like SpaceX, Anthropic, and OpenAI.

A booming predictions market strengthens the outlook for the Hyperliquid crypto. Rising activity drives higher network fees, which in turn trigger more token burns and buybacks. This cycle supports upward pressure on the token’s price.

It will also drive greater use of the USDH stablecoin. The asset base has already grown beyond $67 million, underscoring its rising adoption.

HYPE Burn and Buyback Accelerating

CoinMarketCap data shows that the maximum supply of Hyperliquid crypto is 961 million against a circulating supply of 259 million. This means that the network will continue releasing more tokens in the future.

While the unlocks are inflationary, Hyperliquid has implemented tools to reduce the impact. One of the most important approaches is its token burn and buybacks.

Data shows that Hyperliquid made over $76 million in fees in January. That’s higher than the $68 million it made in December last year. It has already made $28 million this month.

Hyperliquid uses these fees to burn its tokens. Data shows that the network burns more than 1 million HYPE tokens every 5 days.

It’s a trend that will continue in the coming years. At the same time, Hyperliquid network buys back millions of tokens a year. That’s a highly deflationary factor.

Hyperliquid Crypto Price Technical Analysis

On the daily chart, the HYPE price formed a clear double-bottom pattern at $23.32. The neckline sits at $28.26, signaling a potential bullish breakout if the price closes above that level. It has moved above the important support level at $30.

The coin has moved above the 50-day Exponential Moving Average (EMA) and the Supertrend indicator. It is also nearing the 50% Fibonacci Retracement level at $34.

The most likely scenario is that Hyperliquid crypto continues to rise. The next target sits at the 38.2% Fibonacci retracement level near 40. After that, the psychological resistance point is at $50.