Hyperliquid’s recent breakout, alongside renewed momentum in AI-focused crypto assets, 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 strongest performers in the current cycle as traders 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 exchange-traded funds in the United States.

He also noted increasing activity from European traders, who have turned to Hyperliquid due to limited access to perpetual futures trading on regulated exchanges. In addition, he said the protocol’s move into tokenized equities, commodities, and pre-IPO exposure is reinforcing the broader trend of real-world asset tokenization in crypto markets.

Van de Poppe suggested that if momentum continues, HYPE could potentially climb toward the $100 level or higher. He made these comments during an appearance on CoinDesk’s Markets Outlook with Jennifer Sanasie.

While bullish on Hyperliquid in the short term, van de Poppe said he maintains stronger long-term conviction in Solana. He explained that liquidity is increasingly concentrating around a small number of high-performing protocols with strong user growth and revenue generation.

He said Hyperliquid is currently benefiting from this liquidity rotation, but warned that competition is likely to intensify over time. By contrast, he described Solana as evolving from a retail-driven “degen” ecosystem into a more institutional-grade blockchain network, making it a stronger long-term infrastructure bet.

On the AI crypto segment, van de Poppe said the sector remains undervalued relative to traditional AI companies. He pointed to NEAR and Bittensor as key infrastructure projects positioned to benefit from accelerating AI adoption in blockchain ecosystems.

He also argued that while AI equities have become overheated, AI tokens continue to lag despite steady ecosystem development. 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 ongoing subnet expansion and ecosystem growth could justify valuations in the $1,000 to $2,000 range if adoption strengthens.

On privacy, van de Poppe said it remains a major long-term theme for crypto, but fully anonymous systems face increasing regulatory pushback. He noted that both retail and institutional users are demanding more on-chain privacy, while regulators are unlikely to support completely untraceable systems.

He added that European funds already face restrictions on privacy-focused assets and highlighted zero-knowledge proofs and permissioned privacy models as more viable solutions for institutional adoption.

From a macro perspective, van de Poppe said bond yields and central bank policy remain the key short-term drivers for crypto markets. He pointed to Japanese government bond yields as a particularly important signal for global risk sentiment.

He added that declining yields could support both equities and crypto, while persistent inflation would act as a headwind. He also cautioned that he does not expect aggressive interest rate cuts from the U.S. Federal Reserve in the near term, warning that renewed tightening could pressure digital assets and broader risk assets.