Hype 300% Rally Shows Hyperliquid Growth Is It Overvalued?
Hyperliquid's HYPE token has surged over 300% since April, reaching an all-time high on June 17. The platform ranks 8th in total value locked (TVL) in DeFi with $1.75 billion and its decentralized exchange (DEX) processes over $420 million in daily volume, ranking 6th among DEXs. Nasdaq-listed Lion Group will hold $600 million in reserves with HYPE as its primary treasury asset. Hyperliquid, launched in 2023 without external funding, aims to combine decentralized exchange benefits with centralized platform speed. It supports up to 200,000 transactions per second but operates with only 21 validators, raising decentralization concerns. The HYPE token, launched via airdrop, has a market cap of $12.4 billion and a fully diluted valuation of around $38 billion. The tokenomics include managed supply and significant buybacks. Despite skepticism about its valuation, some analysts see potential in Hyperliquid's performance and market position, especially if regulatory conditions improve. Centralization risks remain a concern for long-term resilience.
