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Hyperliquid Surges 18% to Third in Blockchain Rankings, Surpassing Ethereum and Bitcoin

Coin WorldWednesday, May 7, 2025 12:09 pm ET

1min read

Hyperliquid has made a significant leap in the blockchain rankings, becoming the third-highest blockchain by daily fee generation in just 24 hours. This surge has placed it ahead of major players like Ethereum and Bitcoin, a development that was once considered unlikely. The native token of Hyperliquid, HYPE, has shown remarkable resilience in a macro environment that typically punishes speculative assets, trading at around $21.28 at press time, marking an 18% increase from its local bottom earlier this month.

The recent price performance of HYPE has been characterized by a classic accumulation-to-expansion breakout, with bulls consistently defending the $19.5-$20 range. Despite the rally, the absence of a blow-off top in volume suggests that the trend may still have room to grow. The protocol's fee generation now surpasses that of BNB Chain, Ethereum, and Bitcoin, highlighting its impressive performance. Hyperliquid's total value locked (TVL) has climbed past $840 million, with a daily revenue of $1.36 million and a daily perpetuals volume of $4.47 billion. Bridged capital stands at $2.63 billion, indicating significant cross-ecosystem migration into the protocol.

The decision by the Hyperliquid team to raise protocol fees mid-bear market demonstrates their confidence in the protocol's strength. This move requires market makers and funds to buy and stake HYPE to remain competitive, driving real demand. However, higher fees could potentially deter volume in a volatile market, leading to weaker buybacks and a short-term price retreat. Despite this risk, the fact that Hyperliquid has surpassed Ethereum and Bitcoin in fee revenue during this period is a powerful validation of its ecosystem strength.

Analysts suggest that if trading volumes remain strong despite the recent fee hike, HYPE could potentially reach $50. The daily chart shows bullish momentum, with the Relative Strength Index (RSI) near 67 and the Moving Average Convergence Divergence (MACD) trending up, indicating strong buying pressure. The resilience of users sticking around even as fees rise mid-cycle signals deep liquidity and ecosystem strength. However, if the broader market turns risk-off, higher fees could dent volumes, reduce buybacks, and trigger a cooldown. A reversal wouldn't be surprising with RSI nearing overbought levels.

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