Hyperliquid Hits New Highs as Santiment Flags $250 FOMO Risks

TLDR

• Hyperliquid surged into the top 10 cryptocurrencies after overtaking Dogecoin in market capitalization.
• HYPE gained over 50% in a month as price climbed from below $38 to above $64.
• Santiment warned that strong social media optimism may not reflect actual market conditions.
• Analysts said markets often react negatively when crowd confidence becomes excessive.
• Social mentions for HYPE increased nearly seven times before dropping sharply.

Hyperliquid has extended its rally and reached new highs while entering the top crypto rankings. The token overtook Dogecoin in market capitalization as bullish sentiment spread across social platforms. However, Santiment warned that growing optimism around Hyperliquid may be outpacing underlying market data.

Hyperliquid Surge Drives Market Cap Gains and Social Buzz

Hyperliquid recorded strong gains over the past month as its native token HYPE climbed above $64. The rally pushed its market value to about $16 billion, surpassing Dogecoin.

The token gained over 50% during the past 30 days as trading momentum accelerated. Price moved from below $38 to current levels as demand increased.

Data from CoinMarketCap confirmed the asset entered the top 10 cryptocurrencies by market capitalization. The surge placed it among leading blockchain assets in the market.

Santiment reported that social media discussions around HYPE increased sharply during the rally. Mentions peaked near 1,300 on May 21, reflecting a rapid rise in attention.

The firm said social volume rose nearly seven times compared to the previous month’s average. However, activity later declined by about 70% while prices continued rising.

Santiment founder Maksim Balashevich said sentiment data showed strong optimism across crypto communities. He noted that many posts projected a price target of $250.

At current levels, reaching $250 would require a further gain of roughly 290%. Balashevich said such expectations may not align with current market conditions.

Hyperliquid Sentiment Data Signals Cooling Crowd Conviction

Santiment stated that extreme crowd confidence can lead to market reversals. The firm warned traders against treating bullish price targets as guaranteed outcomes.

In a post on X, Santiment said traders should separate fundamentals from fear of missing out. The firm added that markets often react negatively to excessive optimism.

Balashevich explained that data shows a shift in crowd behavior despite rising prices. He said “the crowd already did. Price is still moving.”

The firm recorded a sentiment balance of 402 on May 21 during peak activity. This level marked the highest reading within the tracked period.

Since then, crowd conviction dropped by about 72% while the price gained another 9%. Santiment said this divergence reflects changing market psychology.

The analytics firm emphasized that social metrics do not predict exact price outcomes. However, they help identify phases of strong or weakening trader confidence.

Hyperliquid continued trading near $64 at the time of reporting. Market data shows the asset maintaining its upward trend despite cooling social engagement.

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