Hyperliquid's $50M monthly fees, Near's 190% recovery, and Ondo's 114% gain signal early altcoin rotation. Key is tracking on-chain revenue, not price.
Bitcoin price weakness and macro headlines have pushed several altcoins into positive territory. Analysts view this early strength as a typical start to altcoin cycles. Fundamentally strong projects move first before broader market sentiment fully flips. The current batch includes tokens with real revenue, token burns, and institutional traction.
Hyperliquid was one of the biggest standouts. The token previously dropped more than 65% before staging a recovery. The platform reportedly generated around $50 million in fees over the past month while also burning HYPE tokens, reducing supply and strengthening token economics.
Most crypto projects rely on speculation for valuation. Hyperliquid generates actual fee income from its perpetuals exchange. The burn mechanism creates deflationary pressure that rewards holders when volume stays high. If monthly fees remain above $40 million, the supply reduction could accelerate. A drop below $30 million would weaken the thesis.
Sustained volume on the Hyperliquid exchange is the key metric. Traders should watch weekly fee reports. A decline in fees would signal waning activity and could reverse the price recovery. Conversely, a new all-time high in monthly fees would reinforce the deflationary narrative.
Near Protocol was highlighted as another major recovery play. The token climbed nearly 190% from recent lows as ecosystem activity improved. Near’s AI positioning and growing development activity continue attracting attention despite weak overall market sentiment.
Near’s focus on AI infrastructure gives it a different demand driver than general-purpose L1s. The 190% move from lows suggests accumulation by investors betting on AI-crypto convergence. The risk is that AI hype fades without corresponding user growth. On-chain metrics like daily active addresses and transaction count will confirm or weaken the setup.
Rising developer activity and new AI-related projects deployed on Near would support the thesis. A decline in GitHub commits or a slowdown in ecosystem announcements would signal fading momentum. Near lacks a direct revenue stream like Hyperliquid, making it more dependent on narrative persistence.
Ondo Finance was mentioned as one of the strongest real-world asset (RWA) projects. The token gained more than 114% from February lows as institutional interest around tokenized assets continues growing. Projects tied to real-world finance could remain important if institutional adoption accelerates further.
Ondo tokenizes traditional financial assets like US Treasuries. That gives it a different risk profile than pure crypto plays. The 114% recovery reflects growing conviction that tokenized assets will capture a share of the $100 trillion+ asset management industry. The key risk is regulatory pushback or a slowdown in institutional onboarding.
Watch for new partnerships with traditional financial firms or increases in total value locked in Ondo products. A slowdown in institutional inflows or negative regulatory headlines would weaken the case. The RWA sector remains sensitive to macro interest rates.
Render was highlighted because of its actual business revenue. The project reportedly generates around $8 million annually through GPU rendering services. Besides strong fundamentals, Render previously delivered major gains during earlier market recoveries, making it one of the stronger AI-related projects to watch.
| Project | Key Revenue Metric | Recovery from Recent Lows |
|---|---|---|
| Hyperliquid | $50M monthly fees | >65% drop then recovery |
| Ondo Finance | Institutional RWA | 114% |
| Render | $8M annual GPU revenue | Not specified |
Hyperliquid and Ondo have the most concrete revenue figures. Render’s $8 million annual revenue is smaller but provides a predictable baseline. The comparison shows that Hyperliquid’s fee stream dwarfs the others, making it the most fundamental-driven play.
Worldcoin and Fetch.ai were both mentioned as AI-focused projects continuing to show strength. Virtuals Protocol also gained attention as a growing AI-agent launch platform, often compared to Pump.fun but focused on AI ecosystems instead of meme coins.
Virtuals Protocol allows users to create and deploy AI agents. That positions it in a niche that could see explosive growth if AI agents become mainstream. The comparison to Pump.fun is instructive: Pump.fun generated significant revenue from meme coin launches. Virtuals aims to capture similar volume with AI utility. The risk is that the AI-agent market remains too small to sustain high token prices.
Worldcoin and Fetch.ai are more established but still rely on narrative momentum. Their strength during the recovery phase suggests investor conviction in AI-crypto convergence. Token price alone is not enough; active user growth and developer activity are the real confirmation.
All three projects are highly speculative. A rotation away from AI narratives or a broad market downturn would hit them hardest. Position sizing should reflect that risk.
Sui was highlighted for rising stablecoin activity and growing on-chain momentum. The analyst pointed to the project’s connection to former Meta engineers as a long-term advantage. Sui’s Move-based architecture and high throughput make it a competitor to Solana in the high-performance L1 space.
Rising stablecoin activity on Sui suggests real usage, not just speculation. If stablecoin supply on Sui continues to grow, it could attract more DeFi applications. The connection to Meta engineers gives credibility but does not guarantee adoption. The key metric to watch is total value locked (TVL) on Sui. A sustained increase in TVL would validate the thesis; stagnation would signal the opposite.
Pump.fun was described as a major revenue-generating platform despite recent price weakness. Pudgy Penguins was mentioned as a meme-driven brand that continues expanding globally through merchandise, partnerships, and community growth.
Pump.fun generates real fees from token launches. That revenue stream makes it more resilient than pure meme coins. A decline in launch volume would hurt the token price directly. Pudgy Penguins relies on brand strength and merchandise sales. Both are high-risk plays that depend on sustained community interest. For traders, Pump.fun offers a more measurable revenue baseline, while Pudgy Penguins is a pure sentiment trade.
The altcoin rotation thesis rests on two conditions. First, Bitcoin must stabilize or recover. Second, the altcoins listed above must maintain or increase their on-chain metrics. If Hyperliquid’s monthly fees drop below $30 million, or if Near’s daily active users decline, the rotation could stall. Conversely, if institutional inflows into Ondo accelerate, or if Sui’s stablecoin supply doubles, the move could broaden.
For traders building a watchlist, tracking revenue and user growth matters more than price. The projects with the most concrete fundamentals – Hyperliquid, Ondo Finance, Render – offer the clearest cause and effect. The AI-focused projects – Near, Worldcoin, Fetch.ai, Virtuals Protocol – are more speculative but have higher upside if the AI narrative gains traction.
For a broader view of the crypto market, see our crypto market analysis. For context on altcoin rotation patterns, read Two Crypto Shocks Complete, Altcoin Rotation Hinges on Third Wave.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.