"When examining Hyperliquid at this sensitive stage of the cryptocurrency market cycle, I believe the current picture reflects a classic divergence between short-term pressures and underlying fundamentals that remain capable of reshaping the medium- and long-term trajectory. The recent pullback that pushed HYPE below the $25 level after a series of losses approaching 25% over five days cannot be separated from the broader macroeconomic context."
"When analyzing on-chain data, I find that the drop in HYPE's social dominance to around 0.298% represents a psychological rather than a structural signal. Historically, declining media and community attention in decentralized infrastructure projects often precedes smart accumulation phases, especially when accompanied by a decline in open interest, as seen in its drop to $150.16 million, the lowest level since October."
"In the near term and throughout 2025, I expect Hyperliquid to remain within a volatile trading range, with a gradual tendency to stabilize above the $20 level, provided no new macroeconomic shocks emerge. The decision by the Hyperliquid Foundation to propose a vote to burn more than 37 million HYPE tokens-equivalent to 3.71% of total supply-strikes me as a smart move that reflects maturity in managing the project's monetary policy."
Hyperliquid recently pulled back below $25 after nearly 25% losses across five days, driven by global liquidity tightening and the Bank of Japan's rate increase that repriced risk in volatile assets. On-chain metrics show HYPE social dominance fell to about 0.298% and open interest declined to $150.16 million, the lowest since October, suggesting short-term speculator exits rather than strategic investor liquidation. Short-term volatility is likely to persist through 2025, with a gradual tendency to stabilize above $20 absent new macro shocks. A proposed burn of over 37 million HYPE (3.71% of supply) aims to strengthen monetary policy and support longer-term value.
Read at London Business News | Londonlovesbusiness.com
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