Hyperliquid’s recent rally, along with renewed interest in AI-focused crypto projects, is pointing to a broader recovery in risk appetite across the altcoin market, according to analyst Michael van de Poppe.
Van de Poppe said Hyperliquid has been one of the standout performers in the current market cycle, as traders increasingly rotate back into higher-risk digital assets. The platform’s HYPE token recently reached a new all-time high following the launch of two HYPE ETFs in the United States.
He also highlighted growing participation from European traders, who have turned to Hyperliquid amid limited access to perpetual futures products on regulated exchanges in the region. In addition, he noted that the protocol’s expansion into tokenized equities, commodities, and pre-IPO assets is reinforcing the broader shift toward real-world asset tokenization in crypto markets.
Van de Poppe suggested that if momentum continues, HYPE could potentially advance toward the $100 level or higher. He shared these insights during an appearance on CoinDesk’s Markets Outlook with Jennifer Sanasie.
While optimistic in the short term on Hyperliquid, van de Poppe said he maintains stronger long-term conviction in Solana. He argued that liquidity in crypto markets is increasingly concentrating around a small number of protocols with strong user growth and revenue generation.
He said Hyperliquid is currently benefiting from this liquidity trend, but warned that rising competition could eventually erode its dominance. By contrast, he described Solana as transitioning from a retail-driven “degen” ecosystem into a more institutional-grade blockchain network, positioning it as a stronger long-term infrastructure play.
On AI-related crypto assets, van de Poppe said the sector remains significantly undervalued compared to traditional AI companies. He pointed to NEAR and Bittensor as key infrastructure projects positioned to benefit from accelerating AI adoption within crypto.
He also argued that valuations in traditional AI equities have become overheated, while AI tokens continue to lag despite steady ecosystem growth. He noted that NEAR’s projected revenue growth—from around $10 million in 2025 to as much as $100 million this year—could support a higher valuation.
For Bittensor, he said continued subnet expansion and ecosystem development could justify valuations in the $1,000 to $2,000 range if adoption trends strengthen.
On the topic of privacy, van de Poppe said it remains a major long-term narrative for crypto, but fully anonymous systems face increasing regulatory headwinds. He noted that while both retail and institutional users want greater transactional privacy, regulators are unlikely to approve fully untraceable systems.
He added that European funds already face restrictions on certain privacy-focused assets, and pointed instead to zero-knowledge proofs and permissioned privacy solutions as more viable paths for institutional adoption.
From a macro perspective, van de Poppe said bond yields and central bank policy remain the dominant short-term drivers for crypto markets. He highlighted Japanese government bond yields as a key indicator of global risk sentiment.
He added that falling yields could support both equities and crypto, while persistent inflation would act as a headwind. He also said he does not expect aggressive rate cuts from the U.S. Federal Reserve in the near term, warning that any renewed tightening could pressure digital assets and broader risk markets.
