Hyperliquid [HYPE] has experienced a drop of approximately 4% in its value within the past 24 hours, while its daily trading volume has seen a decrease of nearly 9% compared to the previous day. This comes after the token broke a bullish market trend on January 30, surpassing the $23.74 mark on the price charts.
Earlier analysis from CryptoCrypto suggested that these substantial gains might be just the beginning of a larger upsurge.
The long-term optimistic viewpoint remains unchanged for now. The RSI indicator continues to show positivity in tandem with the price movements. Additional metrics indicate the potential growth of this decentralized exchange (DEX), which comes with its own L1 solution, in the months ahead.
Hyperliquid at the Helm of Trading Volume, Witnessing Impressive User Base Growth
Data sourced from Artemis indicates that Hyperliquid has taken the lead in trading volume among perpetual protocols.
Out of the total $713.8 billion traded across the top 10 protocols in the last quarter, Hyperliquid contributed $419.1 billion, accounting for 59.6% of the share.
Conversely, the total value locked (TVL) has been on a gradual decline since mid-December.
The token’s trading volume has also shown a downward trajectory, barring anomalies observed on January 10 and 20. Notably, there has been an uptick in the volume of perpetuals compared to the latter part of December.
In a recent publication on X, cryptocurrency analyst Miles Deutscher highlighted the continuous rise in both cumulative Hyperliquid trades and total user count. This suggests growing adoption and a solid product-market alignment within the project.
Both the trading volume and new user count experienced an increase in December. The volume metric has displayed consistent growth over the past month, indicating a surge in usage and popularity.
The consistent influx of new users in recent times, if maintained, could drive more demand for HYPE and enhance project traction.
Overall, Hyperliquid’s dominance in perpetual protocols’ trading volume and its consistent growth over the last couple of months position it as a promising venture that has yet to realize its full potential. It is poised to attract investor interest, particularly as market sentiment becomes increasingly bullish.