Decentralized perpetual exchange (DEX) Hyperliquid (HYPE) has reached a significant milestone, surpassing $1 trillion in total perpetual contract (perps) trading volume.
This achievement comes despite a broader market downturn, where major sectors have posted losses. While there has been slight growth today, it remains minimal, highlighting the market’s challenges.
Hyperliquid Dominates Perps Market
According to data from DeFiLlama, Hyperliquid perps’ cumulative trading volume has surged to $1.1 trillion. This rise in activity highlights its growing appeal among traders.
Besides its market dominance, Hyperliquid has made headlines for being central to a major development. As BeInCrypto reported, the platform gained widespread attention after a whale trader opened a 40x leverage BTC short position worth $423 million, triggering a “whale hunt.”
Nonetheless, the developments have not done much for the platform’s native token, HYPE. Instead, it has been underperforming, maintaining a consistent downtrend.
Over the past day, it has depreciated by 3.4%. At press time, it traded at $12.9, marking lows not seen since December 2024. Moreover, the platform has faced increased scrutiny following concerns about potential money laundering.
Analyst Forecasts: Will HYPE Reach $100?
Despite these struggles, an analyst predicted that HYPE could reach $50-$100, citing its status as the leading crypto DEX and its high-throughput Layer 1 blockchain.
In the latest X (formerly Twitter), he highlighted Hyperliquid’s impressive growth. The platform averages $6.7 billion in daily volume, a significant increase from $1.1 billion in October. This surge has increased its market share relative to Binance, jumping from 2% to 9% in just six months.
“If Hyperliquid can maintain just a fraction of its growth rate, we could see it reach ~20% of Binance’s volumes by the end of the year,” the post read.
Hyperliquid Growth Compared to Binance. Source: X/Duncan
According to the analyst, this expansion could significantly boost the HYPE token’s valuation.
“If Hyperliquid is able to reach 20% of Binance’s volume, I think we could easily see $40-50 HYPE with the uptick in earnings and a slight multiple expansion,” he said.
He also highlighted several factors that could fuel Hyperliquid’s continued success. The recent addition of native spot Bitcoin (BTC) trading, coin margin functionality, and the possibility of launching a delta-neutral stablecoin are seen as major catalysts for future growth.
Another key development is the evolution of Hyperliquid’s Layer 1 blockchain ecosystem. The platform has attracted over 50 projects and holds over $2.3 billion in USDC and BTC deposits.
The analyst added that Hyperliquid has a strong potential to establish itself as the third most used blockchain, following Ethereum (ETH) and Solana (SOL), within the next few years.
“Given ETH and SOL are worth $230 billion and $75 billion, respectively what does that make Hyperliquid’s potential L1 valuation? Even at 15-25% of ETH or SOL, that adds another $10-50 to the token price. $50 for the perps/spot/stablecoin product + another $50 for the L1 and $100 HYPE seems possible,” he predicted.
Bitcoin’s price recently hit a monthly high, surpassing $87,000 and marking a notable rise for the crypto king. This rally is attributed to favorable macroeconomic conditions and the increased conviction of key investors.
Despite this growth, long-term holders’ profits have dropped to a two-year low, signaling a more cautious outlook among certain market participants.
Bitcoin Whales Remain Bullish
Whale and shark addresses, which hold between 10 and 10,000 BTC, have been actively accumulating Bitcoin at lower price levels. Over the past month, these addresses have purchased approximately 53,652 BTC, worth nearly $4.7 billion. This buying spree indicates that large investors are taking advantage of Bitcoin’s recent dip, believing in the asset’s long-term potential.
The accumulation by these large investors highlights confidence in Bitcoin’s growth. While some market participants might have been uncertain during Bitcoin’s recent price fluctuations, these major holders appear to be positioning themselves for future gains.
Bitcoin Whale and Shark Holding. Source: Santiment
The MVRV Long/Short Difference indicator, which tracks the difference between short-term holders (STHs) and long-term holders (LTHs) in terms of realized profits, is currently at a two-year low. This indicates that STHs are dominating the market, which reflects the whale accumulation. However, the dominance of short-term holders in profits often signals that the market is ripe for selling, which could result in downward pressure on Bitcoin’s price.
With the MVRV indicator flipping below the zero line, there’s a risk that Bitcoin’s price could be negatively impacted if STHs decide to cash out. While whales continue to accumulate, the growing influence of STHs could lead to increased volatility, especially if the market sentiment shifts.
Bitcoin is currently trading at $87,463, holding above the crucial support level of $86,822. The last time Bitcoin failed to secure this support, the price fell significantly. However, if Bitcoin can maintain support at $86,822, it could move toward the next resistance level at $89,800.
Breaking through the $90,000 mark is a key milestone for Bitcoin. If Bitcoin can reclaim $90,000 as support, it will likely continue its upward trend. This psychological level is crucial for bolstering investor confidence, which would drive further price increases.
On the downside, if Bitcoin faces bearish momentum, it could struggle to hold support at $86,822. A drop through this level would likely lead to a further decline, with the next support level at $85,204. If this fails, Bitcoin could slide to $82,503, erasing a significant portion of the recent gains.
BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative and what their fusion with artificial intelligence (AI) can have on their reach.
LBank also discussed the impact of the four-month-old Markets in Crypto-Assets (MiCA) regulation on its operations across Europe. They described a fundamental change in investor confidence in light of greater regulatory clarity and simplified accessibility.
Have Meme Coin Highs Given Way to Devastating Lows?
In recent years, the meme coin market has largely been characterized by overwhelming highs and devastating lows. The first few months of 2025 have further confirmed the volatile nature of these tokens, to the point that a vocal part of the crypto community believes that their recent lows have marked the end of the meme coin lifecycle.
These claims are not unfounded, especially now that the US President has become a meme coin player. When Trump launched his meme coin in mid-January, TRUMP reached a market capitalization of nearly $8.8 billion, a number never before seen by a meme coin launch.
When insider traders capitalized on the surge to sell off their holdings and retain millions of dollars in gains, retail investors bore the brunt of the massive sell-off, suffering hundreds of thousands of dollars in losses.
“The decline in meme coin market cap since January can be attributed to a combination of market dynamics and sentiment shifts. A key driver was the rapid rise and subsequent crash of the TRUMP token, which drew significant market capital due to its viral appeal but collapsed sharply, eroding investor confidence and triggering a broader risk-off sentiment,” Eric He, Community Angel Officer and Risk Control Adviser at LBank told BeInCrypto.
After similar experiences with the MELANIA token and the LIBRA launch, some of these retail investors realized that meme coins —as unregulated and unpredictable as they are— may not be the best investments.
Is the Meme Coin Frenzy Coming to a Halt?
Given the devastating effects that these episodes have had on the meme coin market, trading has reduced significantly. The crypto community seems to have become saturated with news of pump-and-dump schemes and rug pulls, likely contributing to a halt in the meme coin frenzy.
The total meme coin market capitalization has been free-falling since January’s peak following the presidential token launches. Now, its levels resemble those of September 2024. The greater economic downturn that traditional and crypto markets experienced over the past several weeks has only worsened prospects.
Yet, despite this downward pressure, the market still experiences a high level of activity. It has a $14.5 billion trading volume and a $57 billion market capitalization.
Total meme coin market capitalization. Source: CoinGecko.
According to the LBank team, the meme coin industry is due for a revival.
LBank’s Belief in the Revival of the Meme Coin Market
Though the decline in meme coin performance has been significant, the LBank team expressed that these circumstances are far from unexpected. Meme coins are inherently tied to community support and social momentum.
The sustained trading volumes and large market capitalization serve as tangible indicators that, even in a downturn, the market is seeing active community engagement and liquidity. Investors still see value in the tokens’ cultural and speculative appeal.
“We see it as a healthy market correction rather than a fundamental shift. Meme coins have always been volatile, but the fact that trading volumes remain high shows continued interest. What’s happening now is not the end of the trend—it’s just a recalibration before the next wave,” Mario Iemma, Head of Spanish Markets at LBank, told BeInCrypto.
In fact, Iemma believes that meme coins will not be dying out anytime soon.
AI agents represented the first significant shift in the evolution of the cryptocurrency industry. These autonomous systems proved that they could make decisions and perform tasks independently. This technology enhances intelligence, adaptability, and fairness in financial mechanisms.
Now, developers have unlocked artificial intelligence’s potential on tokens. Systems like Grok have already made news by using AI to automatically and independently design and launch tokens.
However, with a nascent technology like AI, the LBank team emphasized the need for responsible and thorough deployment for the long-lasting success of AI-generated tokens. This success hinges on two particular factors: accessibility and security.
Security and Accessibility Challenges for AI-Generated Tokens
The concept of security is frequently associated with any emerging technology. Artificial intelligence is no exception, especially in a particularly unregulated industry like crypto.
According to He, AI-generated token projects’ degree of security and transparency will determine their success.
Iemma agreed, adding that if AI-generative tokens become widely accessible, this development will also require additional layers of oversight.
“That same accessibility demands better filters, vetting, and AI-based security audits—areas where exchanges like LBank are already investing resources,” he said.
While reflecting on the security risks associated with artificial intelligence and the breaches in consumer trust that meme coins have had on the crypto community, the LBank team also emphasized the need for greater regulation in the industry.
The development of cryptocurrency regulations varies significantly across the globe. Notably, the European Union implemented comprehensive rules almost five months ago, while key markets such as the United States are still establishing adequate frameworks.
MiCA’s Effect on the European Crypto Market
Last December, with the implementation of the Markets in Crypto-Assets (MiCA) regulation, the European Union became the first jurisdiction to establish a comprehensive and unified regulatory framework for crypto-assets across all its member states, marking a significant milestone.
According to the LBank team, MiCA gives users and institutions a trustworthy framework. This development has proven critical for industry growth across the region.
“MiCA has forced firms to become more transparent and compliant, which is a good thing for long-term trust. We’ve seen exchanges accelerate their legal and operational upgrades. For users, it creates a safer, more predictable environment,” Iemma said, adding, “With clearer rules, banks and investment firms are more willing to explore crypto partnerships, custody solutions, and even tokenized assets. Regulation reduces reputational risk, and MiCA is helping bridge that gap.”
However, this experience can be largely attributed to established firms in the industry and investors with access to substantial resources. Other players, however, have struggled to gather the requirements to apply for a MiCA license.
Future Accommodation for Smaller Crypto Businesses
In discussing the impact of MiCA since its enactment last December, He highlighted how different industry players have responded to the landmark regulation. He noted that startups struggle the most to obtain an operational license.
When evaluating the cost-effectiveness of an operational license, He’s conclusions make sense.
MiCA is an expensive regulation. It mandates minimum capital requirements based on the crypto services offered. These requirements range from €50,000 for advisory and order-related services to €125,000 for exchange and trading platforms and up to €150,000 for custody services. Businesses must maintain this capital as a financial safeguard.
Beyond minimum capital requirements, companies must factor in government and legal fees, local presence costs, bank setups, and ongoing operational costs. But for prominent exchanges like LBank, the benefits outweigh the costs.
Future MiCA updates could address the high compliance costs for smaller businesses. Meanwhile, other regions developing their crypto regulations should consider this aspect to avoid creating similar barriers.
