Recently, the HYPE token has shown remarkable growth, and its popularity continues to rise. This article explores the key aspects of this trend and uncovers the success behind Hyperliquid.
Growing Interest in Hyperliquid
Since early April, the HYPE token has risen over 300%. In the two weeks leading up to June 17, it reached record highs. Hyperliquid now leads the decentralized derivatives market, accounting for over 70% of total DEX trading volume.
What Makes Hyperliquid Special?
Founded in 2023 by Harvard graduates Jeff Yan and Iliensinc, Hyperliquid aims to combine the transparency of decentralized exchanges with the convenience of centralized platforms. This DEX offers features like instant trading and eliminates the complexity of asset bridging. Built on a unique blockchain, Hyperliquid uses HyperBFT consensus, allowing it to process up to 200,000 transactions per second. However, it has a low level of decentralization, as the network is managed by only 21 validators.
HYPE Tokenomics
The HYPE token was launched in November 2024, distributing among users. Its current market cap stands at approximately $12.4 billion, implying a high fully diluted valuation of $38 billion. The token serves as both a gas fee and governance asset for the Hyperliquid ecosystem. Moreover, 97% of the protocol's revenue is reinvested into HYPE buybacks. Despite concerns over its valuation, users and analysts see potential for continued upward movement.
Hyperliquid showcases significant achievements in the DeFi space, contributing to the rise of HYPE. Nonetheless, ongoing questions about its long-term value and the sustainability of decentralized platforms remain pertinent.
