If you have been following the altcoin markets lately, you might have noticed both $HYPE and $PUMP tokens pumping quite a lot. On my watchlist, they currently hold the number 1 and 3 spots in terms of 30-day price change: $PUMP is up +53% and $HYPE is up +21%.
While $HYPE is something I've been writing about very often, $PUMP is a newer discovery for me. Sure, Pumpdotfun, the platform itself has made the headlines, and the $PUMP airdrop was highly anticipated.
Since then, $PUMP has made some interesting moves. After the normal post-airdrop sell-off, its price has been steadily climbing up and is now very close to all-time high levels.
The $HYPE chart is equally impressive. Since last April, it has 5X:d, rising from a 6-month low point of $10.23 to the current price of $55.70.
The reason why I am paying extra attention to both of these assets is simple: revenue. While most crypto protocols generate very little revenue, Pumpdotfun and Hyperliquid do, and a lot of it.
The thing here is that both HL and Pump use most of the revenue their platforms generate to buy back their tokens. With Pump, they've used 100% of their revenue for buybacks. While with Hyperliquid it's a bit less, the amount is still substantial.
Hyperliquid has a token burning mechanism, and part of the revenue is also used for staking rewards. The tokens that Pump buys are burned/staked, actions that both reduce the circulating supply.
PUMP/HYPE LP On Project X
I'm currently holding both $HYPE & $PUMP here and there, but just recently, I discovered a more interesting yet more degen way of gaining exposure to both assets' upside potential simultaneously. Yes, once again I'm talking about concentrated liquidity pools.
The name of the protocol is Project X, PRJX in short, and it is a DEX on HyperEVM.
There are quite a few pools to choose from, and they range from more stable pairs to the more volatile ones. The one that I currently have an open position on is the UPUMP/HYPE pair, which is, of course, a bit more degen one since there are two volatile tokens in it.
However, the APR is currently very tempting, although the one shown in the screenshot above is probably the current max APR if you are using a very tight price range.
When you click the 'deposit' button, you get to set your own range, which then defines your estimated APR. With this +/- 5% range, I would get an APR of 154% which is still pretty ok.
The +/-5% range means that the price difference between $HYPE and $UPUMP can deviate only 5% in either way, so you would still keep earning rewards fees, which are paid in $HYPE & $UPUMP. If it falls out of the range, you can either wait for it to reach the range again or rebalance, meaning you need to exit the position, swap your allocation (which is now 100% in either asset) in 50/50 again, and re-enter the position.
By the way, $UPUMP is from Unit, a protocol allowing you to bridge assets from other chains onto HyperEVM. So BTC is UBTC, ETH is UETH and so on.
Conclusion
Since $HYPE just made a new ATH, and $PUMP is about to, I'm not sure whether it's a good time to jump in right away or wait for a little pullback. It's up to you. That being said, if we get a proper alt run, I'm pretty sure both of these are gonna fly high because of the revenue generated, buybacks, burns and general interest toward these protocols.
Besides good APRs and potential upside on both $HYPE and $PUMP, there is, of course, the airdrop possibility. Project X has an ongoing points program (if you wish to use my ref code, it's brando28), and since it's a relatively new protocol on HyperEVM, I think there's some potential on that side as well.
Thank you for reading, and don't forget to follow for more! 👇
Follow for more on X!
🔹 Hyperliquid - the best perp DEX out there. Trade, stake & farm the next big airdrop!
🔹 Hybra Finance - New protocol! earn points by providing liquidity, we're still early
🔹 HypurrFi - farm airdrop points with stables by entering ref code BRANDO28
🔹 Billions - complete easy tasks to take part in the airdrop
🔹 LeoDex - multi-chain, multi-wallet dex for all of your swaps
🔹 VOLO - stake SUI to earn APR & airdrop points!
🔹 Pawtato Land - very useful SUI dashboard, earn XP for the airdrop by completing small tasks
🔹 Huma Finance - easy to farm an airdrop on Solana. Deposit USDC, earn APR % points
🔹 Magma - concentrated LPs on Sui. Very good APRs!