HYPE Revives Memories of Solana’s Explosive 2023 Rally

Hyperliquid’s $HYPE token has gained fresh attention after analysts compared its current market setup to Solana’s position before the network’s major 2023 rally. The discussion started after crypto analyst Ansem said Hyperliquid’s circulating market value now looks similar to Solana’s valuation when $SOL traded near $20 in October 2023.

Months later, Solana climbed above $200 during one of the biggest rallies of the cycle. The comparison quickly spread across crypto markets as traders looked for signs of where momentum could move next.

A chart shared alongside the discussion showed both assets trading in similar consolidation ranges before stronger price moves followed. Hyperliquid now trades near the upper end of its current range, an area many traders closely watch for possible breakout attempts if buying activity continues to increase.

Market Structure Comparison Gains Attention

At the time, $SOL moved within a tight range for months before demand returned to the broader altcoin market. As buying activity increased, Solana eventually climbed above $200 within less than six months.

Still, the chart did not show any expectation of the same outcome for Hyperliquid. The similar chart structures do not always lead to identical price movements. However, traders often monitor these setups to identify projects attracting stronger liquidity and growing market interest.

Source: X

Hyperliquid has recently expanded its role within the perpetual futures sector as trading volumes continue increasing. Besides, the platform has gained more attention from crypto-native traders as ecosystem activity grows.

Funding rate data has also remained relatively stable compared with the sharp spikes recorded during Solana’s rally phase. Traders often use funding rates to measure speculative activity in leveraged markets. As a result, excessive positioning has not yet entered the $HYPE market.

Related: $HYPE Targets $69 as Whales Double Down and Short Sellers Face Mounting Losses

Hyperliquid Flips Solana in FDV

Blockchain analytics platform Arkham added fresh momentum to the Hyperliquid-Solana debate after showing that Hyperliquid briefly moved ahead of Solana in fully diluted valuation. Arkham data showed $HYPE trading near $56.71, giving the token a fully diluted valuation of roughly $54.57 billion. During the same period, Solana’s fully diluted valuation stood near $54.22 billion.

The comparison matters because fully diluted valuation measures what a project could be worth if all tokens eventually enter circulation. Still, Hyperliquid remains much smaller than Solana in terms of circulating market value. $HYPE’s circulating market capitalization stood near $13.28 billion, while Solana’s remained close to $50 billion. The difference mainly comes from the amount of tokens currently available in the market.

Institutions Increase Exposure to $HYPE

Institutional interest has also increased around Hyperliquid as several asset managers move into the sector. Firms including Bitwise, Grayscale, 21Shares, and VanEck have filed or launched investment products tied to Hyperliquid.

Bitwise’s BHYP ETF has already recorded inflows, while Grayscale reportedly accumulated millions of dollars worth of $HYPE for staking. The growing institutional activity has added to discussions around Hyperliquid’s role in crypto trading markets.

Meanwhile, Hunter Horsley described Hyperliquid and Solana as part of a new category he called “income chains.” At the same time, Anatoly Yakovenko downplayed rivalry concerns, stating, “I’m not worried about someone else succeeding.”

Related: Bitwise CEO Pushes ‘Revenue Chain’ Narrative for $HYPE, $SOL