What is Helping Hyperliquid (HYPE) Hold Firm Amid Extreme Market Fear?

Hyperliquid (HYPE) has shown remarkable resilience, rising 60% while the broader crypto market capitalization fell significantly. This outperformance is attributed to several internal catalysts that counteract general market fear. Key drivers include a surge in trading volume for HIP-3 futures contracts and institutional access provided by Ripple Prime. Furthermore, Coinbase officially enabled HYPE trading on February 5th, boosting liquidity and demand, which some analysts suggest may also position it favorably for future spot ETFs. Uniquely, HYPE benefits from high liquidation volumes across exchanges because Hyperliquid utilizes a fee-revenue-based buyback mechanism; high trading activity generates significant fees, which are then used to buy back HYPE tokens, directly supporting its price. Despite these positive factors, investors should note upcoming risks, such as the unlocking of 9.92 million HYPE tokens on February 6th, and the importance of maintaining the $30 price level for continued upward momentum.

(Source：BeInCrypto)