Hyperliquid’s token, HYPE, experienced a significant price rebound on Monday, climbing by over 25% from its lowest point over the weekend. The surge in price comes as the decentralized finance (DeFi) platform nears a crucial milestone in its trading volume, with Hyperliquid’s monthly trading volume hitting a record high of $366 billion in January. This marks an increase from the previous month’s $341 billion, reflecting the platform’s growing dominance in the market.
The platform’s daily trading volume spiked by 57% on Monday, reaching $16.54 billion. Over the last week alone, Hyperliquid has processed nearly $60 billion in trades, bringing its cumulative trading volume to $842 billion. With the current pace of growth, the network is on track to surpass $1 trillion in trading volume within the month, further solidifying its position as the largest player in the perpetual futures sector.
Hyperliquid’s market share is expanding rapidly, as evidenced by its monthly volume of $58 billion, which far surpasses that of its competitors such as Jupiter ($10.2 billion), dYdX ($3.1 billion), and SynFuture ($3.6 billion). The increase in trading volume has translated into a sharp rise in protocol fees. Data from DeFi Llama indicates that Hyperliquid’s fees reached a record high of $51.4 million in January, a substantial increase from the $10.4 million recorded the previous month.
HYPE Price Analysis
The price of HYPE has shown strong upward momentum. According to the four-hour chart, the token reached a peak of $35.20 in December before retreating to $25.35. However, since January 6, the price has been forming an ascending channel, with higher highs and higher lows. The price recently moved slightly above the 25-period Exponential Moving Average (EMA), which is considered a positive signal.
HYPE is currently testing the 38.2% Fibonacci retracement level, and if the upward trend continues, the next resistance level to watch is $28.40, the highest point in January. A breakout above this level could lead to further gains, potentially reaching the all-time high of $35.20, a 40% increase from current levels.
However, there is a potential downside risk. If the price falls below the key support level at $22, this could signal further losses, with the next support target at $18.88, its lowest level in January.
Overall, Hyperliquid’s impressive growth in trading volume and market share, combined with the positive price movement of HYPE, suggests strong bullish sentiment for the token in the near term. The platform’s continued dominance in the perpetual futures market and increasing protocol fees further support the potential for continued upward momentum.