Hyperliquid Adds $1.3bn to Its Market Cap in a Week – Can HYPE Make a New ATH?

HYPE’s market cap has expanded from around $7 billion a week ago to $8.3 billion at the time of writing. As a result, this DEX now doubles the market value of its closest rival, Uniswap (UNI).

Just an hour ago, the exchange announced that it will start to support Tether (USDT) deposits through a new token called USDT0.

This could be a landmark moment for the platform as it could result in a significant boost to its total value locked (TVL) in the near term.

USDC had been until now the primary stablecoin used by traders to fund their accounts in the Hyperliquid platform. USDT is the largest stable asset in the crypto world and the most popular among crypto enthusiasts.

Open interest for the exchange’s perpetual futures has been steadily rising in the past 3 months, which explains why the price of HYPE has been increasing as well.

Data from CoinGecko shows that OI has surged from $3.36 billion on February 10 to $4.85 billion at the time of writing.

Recently, Hyperliquid launched its staking initiative. From now on, traders who stake HYPE will receive discounts on their trading fees. This creates an additional incentive to hold HYPE and reduces the token’s liquidity, which supports an increase in the price.

Market Sentiment Recovers and Supports Bullish Outlook

Moving to the macro backdrop, market sentiment has been improving recently as the Fear and Greed Index has jumped from a record low of 15 (Extreme Fear) just a month ago to 70 (Greed).

Market participants may feel that the latest hostile measures pushed forward by the Trump administration to increase tariffs will slow down the economy and result in higher unemployment.

In response, the Federal Reserve could be forced to lower rates to foster growth via more flexible and advantageous financial conditions.

In that scenario, cryptocurrencies will rally as higher rates result in higher liquidity in the market, which in turn results in higher prices.

HYPE Needs to Rise Above $28 to Make a New ATH

Looking at the HYPE daily chart, the price broke its descending channel on April 11 along with its 21-day exponential moving average (EMA). It also surged right back to its value area, meaning the price levels where the highest trading volumes have concentrated throughout the year.

Meanwhile, the 21-day EMA has now crossed above the 50-day EMA. This golden cross supports a bullish outlook for HYPE in the short term.

The $25 – $28 area has been bearish for HYPE in the past as the price has experienced significant selling pressure once it gets to those levels.

Now that market sentiment has improved and, possibly aided by short squeezes, the price could easily skyrocket to $35 if bulls manage to push HYPE above the $30 area.

This means huge upside ahead and possibly a new ATH on the horizon for HYPE if that resistance is cleared.