1. Executive Summary
Token Overview
- Ticker: $HYPE
- Current Price: $16.64
- Market Cap: $5.4B
- FDV: $16.3B
- Sector: Layer 1 Blockchain & Perpetual DEX
Key Highlights
- Revenue Powerhouse: Generates $12.8M+ weekly revenue, exceeding Ethereum’s profitability.
- Community-Centric Tokenomics: 70.2% of tokens allocated to users, avoiding VC dominance.
- Liquidity Innovation: Concentrated liquidity model captures 100% of trading fees.
- First-Mover Advantage: Hybrid CEX/DEX model competes with dYdX and GMX.
👉 Explore how Hyperliquid outperforms traditional DEXs
2. In-Depth Due Diligence
2.1. Project Overview
Hyperliquid L1 Blockchain
- Specialization: Optimized for financial applications with HyperBFT consensus (100k TPS).
- Core Product: On-chain perpetual DEX with CEX-like order book transparency.
Competitive Edge
- EVM Compatibility: Cross-chain liquidity via Arbitrum integration.
- Advanced Trading: Supports TWAP, scale orders, and 0.01% slippage for top pairs.
2.2. Team Background
Jeff Yan (Co-Founder)
- Education: Harvard CS & Mathematics.
Experience:
- Hudson River Trading (Traditional finance HFT).
- Founded Chameleon Trading (Crypto market-making).
- Anonymity Balance: Core team remains private, but Yan’s visibility boosts credibility.
2.3. Business Model
Revenue Streams
- Trading Fees: Tiered maker-taker structure (0.003% rebates for Tier 3 market makers).
HLP Vaults:
- Protocol-managed vaults (17% APY).
- User-generated vaults with profit-sharing.
Ecosystem Synergy
- L1 Infrastructure: Gas-free transactions.
- Assistance Fund: On-chain safety net for liquidations.
| Feature | Hyperliquid | Competitors |
|---|---|---|
| Slippage | 0.01% | 0.05%+ |
| Daily Volume | $4B | $1.5B |
👉 Why traders prefer Hyperliquid’s deep liquidity
3. Market Dominance
3.1. Performance Metrics
- Market Share: 70.3% of PERP DEX volume.
Growth Stats:
- 1,020% volume increase (Jan 2024–Jan 2025).
- $850B cumulative trading volume.
3.2. Financials
- Revenue: $67M accumulated (Jan 2025).
- Projected Annual Revenue: $419M.
4. Tokenomics Deep Dive
Supply Breakdown
- Circulating Supply: 33% (333M $HYPE).
- Locked Tokens: 426M staked (42.6% of total).
Allocation Strategy
- Community: 70.2% (Airdrops + future rewards).
- Team/Fundation: 29.8% (3-5 year vesting).
Strategic Liquidity
- CEX Avoidance: All liquidity on Hyperliquid DEX.
- Price Control: 18.5% circulating supply traded in-house.
5. FAQs
Q1: How does Hyperliquid’s revenue compare to Ethereum?
A1: It generates higher weekly revenue ($12.8M vs. Ethereum’s $9M) from trading fees.
Q2: What makes HLP vaults unique?
A2: They offer up to 17% APY via algorithmic strategies without management fees.
Q3: Why no major CEX listings?
A3: To retain fee revenue and prevent token dumps—central to its ecosystem growth.
Q4: Is $HYPE a governance token?
A4: Yes, holders vote on listings and network upgrades.
Q5: What’s the risk of validator price feeds?
A5: Short-term discrepancies may cause unfair liquidations (mitigated by Assistance Fund).
6. Conclusion
Hyperliquid redefines DeFi derivatives with unmatched liquidity, fair tokenomics, and a revenue-sharing model. Its avoidance of VC dependency and CEX listings underscores long-term sustainability.
Disclaimer: This analysis is informational—conduct independent research before investing.