Cathie Wood is hyping Hyperliquid, drawing parallels to Solana's early days. But is this DEX really the next big thing, and can the HYPE rally continue?
Cathie Wood, the CEO of ARK Invest, has been making waves by comparing the decentralized perpetuals exchange Hyperliquid to Solana's breakout years. With endorsements from traditional finance heavyweights and a recent price rally, is Hyperliquid living up to the hype?
Cathie Wood's Endorsement: Hyperliquid as "The New Kid on the Block"
During a recent appearance on the Master Investor podcast, Cathie Wood expressed her excitement about Hyperliquid, calling it "exciting" and drawing parallels to Solana's early days. She noted Solana's proven worth and its current standing among the "big boys" in the crypto space. While ARK Invest's crypto exposure is primarily focused on Bitcoin, Ethereum, and Solana, Wood sees the rise of decentralized exchanges (DEXs) like Hyperliquid as a significant shift in trading infrastructure.
Institutional Interest and VanEck's Involvement
Hyperliquid isn't just catching the eye of crypto enthusiasts. VanEck CEO Jan van Eck has also praised the Layer 1 blockchain's "advanced technology and decentralized governance." VanEck is actively involved in Hyperliquid's ecosystem governance and research, hinting at future partnerships and demonstrating significant institutional demand for DEX infrastructures.
HYPE Rally: A Closer Look at the Price Action
Hyperliquid's native token, HYPE, has experienced a notable rally. It recently soared 7.55% to a new all-time high of $57.38, before slightly retracing to $56.68. Over the same period, its market cap reached a new all-time high of $19.13 billion, while volume jumped 39% to $617 million. Whales continue to accumulate, with one depositing $8 million into Hyperliquid and purchasing 86,322 HYPE tokens worth $4.88 million. Large holders have spent $9.46 million acquiring the token—signaling strong market conviction from institutional players.
On-Chain Activity and Derivatives Market
HYPE's on-chain network activity has surged, with Cumulative Trades jumping to 147 billion and Total Users reaching 669.8k. The number of New Users surged 42% to 2.1k, indicating a strong adoption rate. Derivatives capital inflow has also soared, with HYPE's Perpetuals Volume surging from $3.3 billion to $12.3 billion within five days.
Technical Analysis: What the Charts Say
After reaching an all-time high of $59.39 earlier in September, HYPE corrected to $43.77, a 26% pullback. The daily chart shows the token breaking below its rising wedge pattern, a typically bearish signal. However, if HYPE can reclaim the $45–47 range and flip $51.36 into support, upside targets include the $55 level and a potential retest of the all-time high at $59.39.
The Million-Dollar Question: Can the HYPE Continue?
According to AMBCrypto’s analysis, HYPE rallied as buyers, both whales and retail, dominated the market. At the same time, its on-chain activity surged significantly, indicating organic demand. Therefore, the prevailing market conditions position HYPE for more gains. As such, if these positive sentiments persist, Hyperliquid’s uptrend will continue and hit another high. However, if the ATH incentivizes holders to realize profit, any intense downward pressure will see HYPE retrace to $51.
Final Thoughts: Is Hyperliquid the Real Deal?
Cathie Wood's comparison of Hyperliquid to Solana is definitely turning heads. With growing institutional interest and a recent price surge, it's hard to ignore the potential. Whether Hyperliquid will truly become the "new Solana" remains to be seen. One thing's for sure: the crypto world will be watching closely. So, buckle up and enjoy the ride – it's gonna be a wild one!
