TLDR
- HYPE token dropped 15-16.57% in 24 hours
- There are growing concerns about the concentration of power within HyperLiquid’s ecosystem.
- At present, HyperLiquid retains control over a significant 81% of its staked HYPE tokens.
- Currently trading at a key support level of $21.59, the crypto is moving within a downward channel.
- Previous monthly gains were 64.93%
Known for its derivatives platform, HyperLiquid is grappling with criticism over its centralized operational model. The HYPE token has been under market pressure following a 16.57% drop in just 24 hours, prompting discussions about the platform’s governance model. Kam Benbrik from ChorusOne sparked debate by showing how centralized HyperLiquid is, pointing out that they oversee 81% of staked tokens and calling into question their decentralization.
The consolidation of staked tokens poses a threat to network integrity. Benbrik’s study shows a third-party controlling a third of the stake can stop the chain, and two-thirds can seize network control.
— Kam 🌑 (@KamBenbrik) January 7, 2025
A critical view also exists over HyperLiquid's closed-source approach, which may restrict node operators’ ability to function independently, according to Benbrik.
HYPE’s price has reached a key support of $21.59, a level historically linked with upward market movement, based on technical research.
Although HYPE's value has dipped recently, it boasts a robust 64.93% gain overall for the month, moving within a downward-sloping channel.
Hyperliquid
HYPE Price
HyperLiquid officially acknowledged the centralization challenges via their X profile, promising an open-source transition post-security refinement.
HyperLiquid thrives on constant enhancement, focused on fully integrating financial systems onto the blockchain, with community feedback shaping ongoing developments.
Recent misunderstandings have surfaced relating to the role of validators.…
Efforts to decentralize are underway, yet no specific timeline or detailed plan has been shared, fueling some market apprehension.
— Hyperliquid (@HyperliquidX) January 8, 2025
There are conflicting technical indicators concerning HYPE's short-term price movements.
The Relative Strength Index (RSI) offers a hint of reduced selling pressure, albeit with lingering bearish market sentiment. HyperLiquid’s Total Value Locked (TVL) continues to show bearish trends, adding to selling pressure on HYPE.
Despite the slump, investors still accumulate HYPE, eyeing a possible upward swing. Technical signs point to a bullish trend if it surpasses the upper boundary of its current descending channel.
Historical market data saw HYPE peaking at $35.7, setting a target for potential recovery amid favorable conditions.
With HYPE trading at $21.59, market watchers are keenly observing this critical level to predict short-term trends.
Recent trade patterns display increased activity during the price drop, a direct response to centralization anxieties.
HYPE stabilizes at the $21.59 mark, while debates over the platform's centralization might shape market attitudes.
The Editor-in-Chief of Blockonomi and the brain behind Kooc Media, a UK-driven digital media outfit, advocates for open-source, blockchain, and equitable internet access.
