HYPE (Hyperliquid) rose 3.37% in the last 24 hours.

Gate News Bot news, on December 22, according to CoinMarketCap, as of the time of writing, HYPE (Hyperliquid) is currently priced at $24.98, rising 3.37% in the last 24 hours, with a high of $28.02 and a low of $22.27, and a 24-hour volume of $159 million. The current market capitalization is approximately $8.411 billion, an increase of $274 million compared to yesterday.

Hyperliquid is a high-performance public chain focused on finance, dedicated to integrating various financial projects, value creation, and asset trading on a super-efficient chain. Its flagship application is a decentralized derivatives exchange, characterized by zero gas fees and low trading fees, supporting up to 40x leverage trading, with a fully on-chain order book where trading, funds, and settlement all occur on Hyperliquid L1. The platform offers a one-click trading experience without wallet authorization. The network has a block time of 0.07 seconds and a maximum throughput of 200,000 TPS, with a daily trading volume reaching $3.7 billion. HYPE is the native token of the network, with no investors, no paid market makers, and no company fees, adopting a community-first governance model, allowing token holders to participate in network ownership, governance, and security.

Recent Important News on HYPE:

1️⃣ Traditional financial institutions are bullish, with long-term valuation targets significantly raised Wall Street investment bank Cantor Fitzgerald released an in-depth research report, predicting that the market capitalization potential of HYPE tokens could reach $200 billion within the next decade, evaluated based on a “exchange-level” business model. The report assumes that Hyperliquid could achieve an annual revenue of approximately $5 billion at its mature stage, with a price-to-earnings ratio of 50 times. By 2025, Hyperliquid is projected to have processed nearly $30 trillion in volume, generating approximately $874 million in fee revenue, of which about 99% is returned to the ecosystem through buyback and burn mechanisms. Cantor expects Hyperliquid's annual trading volume to maintain a compound growth rate of about 15% over the next decade, ultimately reaching an annual trading scale of $12 trillion. This rare high-level valuation analysis from a traditional financial institution reflects an important signal that DeFi infrastructure is being redefined.

2️⃣ Deflationary mechanism activated, community governance promotes token burn The Hyper Foundation has officially submitted a proposal for token burning, planning to destroy all HYPE tokens held in the Assistance Fund, which currently has approximately 37 million HYPE tokens accounting for about 13% of the current circulation. The Assistance Fund converts trading fees into HYPE tokens stored in a zero-address system in a fully automated manner. If the proposal is approved, these tokens will be permanently destroyed and will no longer be counted in the total supply, while also promising never to authorize protocol upgrades to access this address in the future. Validator voting will end before December 24 at 04:00 UTC, and the market response has been positive, with the HYPE price slightly rising by about 2% after the announcement, and the open interest in futures increasing by about 3% to 1.52 billion USD within 24 hours.

3️⃣ Spot ETF promotion and institutional capital entry, investment channels expanded Bitwise has submitted a revision document for the Hyperliquid spot ETF, adding clause 8(a), a fee rate (0.67%), and a stock code (BHYP), which typically indicates that the product is about to be launched. This move provides a compliant channel for traditional investors to participate in the HYPE ecosystem. At the same time, large whale addresses are showing a positive attitude towards increasing their holdings of HYPE, with multiple wallets cumulatively buying over 490,000 HYPE tokens (worth about $12.1 million) in the past 14 days to lower their cost basis; additionally, new addresses are continuously increasing their holdings of HYPE worth about $2 million through a TWAP strategy, reflecting the optimism of institutions and large holders regarding long-term value.

4️⃣ Industry celebrities are optimistic about the cyclical rotation, HYPE becomes a benchmark case for altcoin season Industry insider Arthur Hayes stated in an interview that the altcoin season is always happening and considers Hyperliquid to be the best case of this cycle so far, with the project's token rising from $2 to $3 to $60. He noted that many traders still expect the altcoin season to repeat the patterns of previous years and advised traders to adjust their mindset to focus on new developments in the market. This sentiment highlights HYPE's market position as a representative of the new round of on-chain exchange infrastructure.

5️⃣ The platform's trading activity is facing adjustments, with contract positions concentrated on low leverage. The number of active contract trading addresses on the Hyperliquid platform decreased by 21.97% to 168,833 compared to early November, reflecting a temporary pullback in user participation. Among the $7.63 billion in open contracts over the past 24 hours, $3.7 billion opted for 3-7x leverage, the largest proportion, followed by $2.77 billion with 0-3x leverage, while funds with over 7x leverage saw a significant decline. This phenomenon indicates a decrease in traders' risk appetite, with market participants gradually adjusting from high-leverage positions to more stable structures, and the proportion of short funds in whale positions has increased, leading to an overall long-short ratio dropping to 0.91.

This message is not an investment advice, and investors should be aware of market volatility risks.