- A crypto VC claimed that the hype could be undervalued at the current level.
- The wider market route has exposed a hype to a decrease of 50%.
Hyperliquid [HYPE] is enormously undervalued compared to Ethereum [ETH] or Solana [SOL] With the current values. This was the argument of Ryan Watkins, Crypto VC partner at Syncracy Capital. Watkins said”
“(Hyperliquid) is the dominant decentralized derivative exchange with 60%+ market share; It is also the best earning blockchain today behind Solana and Ethereum. Nevertheless, $ hype acts on the lowest multiple of his colleagues. “
Source: Syncracy Capital
The graph shared by Watkins showed that Hyperliquid was the top three chains from a perspective. Hyperliquid, which works like Dex and a layer of 1 blockchain, had a reimbursements of $ 577 million, slightly above Tron [TRX].
Hype’s potential
In his hype rackWatkin said that Hyperliquid could compete with centralized exchanges such as Binance. In particular, the new player on the eternal market has received a huge share since the end of 2024.
Source: Syncration
So what impact do they have on the hype? Watkins noted that the strong growth and income ($ 200 million) had enabled the team to stimulate an aggressive repurchase program, which could be a net positive for the hype. He added,
“This not only offered strong stimuli for recipients to hold instead of selling immediately, but also created a strong buying pressure for hype, because the reimbursements fed large -scale returns.”
However, the current price action did not lean heavily on the side of the bulls. Hype fell by 50% compared to the highlights of the December of $ 35 and traded at $ 17, at the time of the press.
Source: Hype/USDT, TradingView
Since the end of February, the daily RSI had swollen under a neutral level, which enhances a relatively undervalued token and a high sales pressure.
If a broader market sentiment further weakens in the short term, the hype can fall to $ 12- $ 14 support (bullish order block) or $ 10.
Conversely, a leap above $ 20 would turn its market structure bullish and tip bulls to push higher.