The native token of hyperliquid (Hype) rose to a fresh high time early on Wednesday and continued its meteoric increase this year, as the decentralized exchange best known for an eternal trade on chain has attracted record activity.
The token broke through the $ 50 mark for the first time and got approx. 8% over the last 24 hours. Hype has now risen by 430% since Nadir in April and up approx. 15x, since it started shopping at the end of November to about $ 3.
The rally has been driven by record trade activity across the exchange and its automated repurchase mechanism, which steadily absorbs tokens from the market and reduces circulating supply.
Read more: Hyperliquid now dominates defi -derivatives, processing $ 30b a day
Trade in boom
The decentralized exchange recorded more than $ 357 billion in Derivatives in August, according to Defillama data, up from $ 319 billion in July and almost ten times higher than a year ago. Spothandle volumes also set a record and surpasses $ 3 billion a week ending August 24, Blockworks Data shows.
These flows translated into a fall in the protocol. Hyperliquid reserved $ 105 million in commercial fees during August, the highest this year, per year. Defillama -Data.
Much of these earnings are funnel direct to buy hype on the market through Hyperliquid’s Assistance Fund. The facility is an automated on-chain mechanism that buys back symbols in the open market, creates renewable purchase pressure for hype and effectively reduces circulating supply.
Since launching in January, the fund’s possessions from 3 million tokens to 29.8 million hype, now worth over $ 1.5 billion, which fuel for the tokens rally.
On the news front, Digital Asset Custodian Bitgo on Tuesday added to the Hyperevm network that supports the hyperliquid ecosystem that locks institutional access to hype and related applications.
Analysts flagize risk in the midst of strong basic elements
In a recent research note, the bytetree analysts described Shehriyar Ali and Charlie Morris Hyperliquid as a “power center” that has become the largest decentralized eternal futures venue.
“Everything considering Hyperliquid is among the most compelling protocols in Defi today,” they wrote. “Its strong basic elements, record -breaking charge and dominant market share makes it impossible to ignore.”
Despite the Bullish basic elements, the report also marked concern about token’s valuation. Hype is currently acting to a fully diluted valuation (FDV) of over $ 50 billion, with only approx. third of the supply in circulation with a market value of 16.8 billion.
Planned token, which unlocked from November, could also introduce sales pressure, potentially test the strength of demand, noted the report.
“Although the token has already seen a sharp drive in recent months, its robust activity on chain continues to support its valuation,” the analysts said.
Read more: XPL Futures on Hyperliquid See $ 130m wiped out in front of the plasma -tokens launch
