The sharp rise in Hyperliquid’s HYPE token in May significantly affected the crypto market agenda. HYPE rose to $62.50 in a short time, causing investors to re-look at their portfolios. This rapid price movement has raised questions among many altcoin investors as to whether a similar rise could be repeated in their assets. Especially on the XRP side, the long-disappointed community has had to compare expectation with current realities.
XRP and HYPE price performance comparison
The record move in the HYPE price was driven by the project’s earnings, 97 percent of which were driven by a deflationary model, and regular buyback programs. XRP, on the other hand, has been calm for a long time on the daily price chart. While the price of the coin is stuck around $1.3518, the 50, 100 and 200-day moving averages are creating serious resistance, making upward movement difficult.
XRP investors should pay attention to supply and demand dynamics if they expect a steep rise like Hyperliquid’s. HYPE’s price is supported by scarcity and constant buying. However, XRP has a huge supply of billions of units and billions of dollars need to enter the market for XRP to rise to the same level. The large amount of supply the company has also suppresses the price.
Mini dictionary: Deflationary model means that the supply of cryptocurrencies decreases over time or the supply contraction achieved by burning coins in certain periods. This mechanism has the potential to raise the price by increasing scarcity.
| token | Current Price | Supply | Total Inflows to Spot ETF |
|---|---|---|---|
| HYPE | $62.50 | constrained, deflationary | $63.96 million (US first 8 days) |
| XRP | $1.3518 | Billions of tokens | $1.15 billion (total assets) |
While HYPE is in the spotlight in the crypto market, large investors on the XRP side are following a different strategy. In particular, spot XRP ETFs saw a net inflow of $12.57 million on a weekly basis. The total assets under management increased to 1.15 billion dollars. Although the XRP reserve decreased to 2.74 billion on the Binance exchange, this did not have a major impact on the price.
Could the new regulation of the US Senate be a hope for XRP?
It is stated that the most important factor that will increase the short-term excitement of XRP is legal regulations. Finally, the possibility of passage of the Digital Asset Market Clarity Act (Clarity Act), passed by the US Senate Banking Committee, in June may create a long-term basis for institutional investors.
Although the enactment of the Clarity Act does not support the expectation of a major speculative movement in XRP, according to analysts, this step may bring new institutional investments that will stabilize the market in the long term.
While the FOMO (fear of missing out) wave in HYPE has investors excited in the short term, it seems that XRP holders will need to be prepared for a more organic, over-time growth for the upward movement. It is stated that the main target in the market by the end of the year is between 2 and 2.80 dollars, but if the current support of 1.35 dollars is broken down, the price may drop to 1 dollar.
