Hyperliquid’s HYPE token surges 60% after billion-dollar airdrop

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As a seasoned crypto investor with a knack for spotting promising opportunities, I find myself intrigued by the recent event surrounding Hyperliquid’s airdrop. With a whopping $1.2 billion distributed during its genesis event, it has certainly made a splash in the DeFi landscape. The rapid surge in HYPE token’s value within just 12 hours is a testament to the project’s potential and the excitement surrounding it.

The decentralized finance (DeFi) platform, Hyperliquid, made its mark by joining the list of significant airdrop events ever, as it disbursed 310 million HYPE tokens to its community during its launch on November 29th.

During its debut, the HYPE token was initially priced at around $3.90, giving it a total distribution value of approximately $1.2 billion based on data from CoinGecko. Within roughly 12 hours, the token’s worth skyrocketed by 63%, trading at $6.16 at the time this report was written. Currently, its market capitalization is close to reaching $2 billion.

Hyperliquid is a blockchain built using a proof-of-stake system, capable of handling up to 200,000 transactions each second. The HYPE token plays a crucial role within this ecosystem, acting as both the asset for validating transactions (consensus) and the fuel for transactions processed on Hyperliquid’s Ethereum Virtual Machine-compatible layer, known as HyperEVM.

As per the established protocol, it apportioned 31% or $300 million worth of its HYPE tokens during the genesis event. Further, it has allocated 38.8% of the remaining supply for future emissions and community incentives, while 6% goes to the Hyper Foundation’s treasury, and a tiny fraction of 0.3% is earmarked for grants.

The largest airdrops

The airdrop conducted by Hyperliquid ranks among the largest in the history of Decentralized Finance (DeFi) to date. In September 2020, Uniswap’s airdrop distributed approximately 400 UNI tokens to more than 250,000 different addresses, each token being worth around $3.40 at the time of distribution – making the total distribution worth around $1,300 per recipient. Although many users immediately sold their tokens, those who held on saw the value of UNI soar to over $42 during the summer of 2021 – the DeFi boom period.

2023 saw another significant event: the Arbitrum protocol conducted an airdrop, distributing approximately 812,500 units of its native ARB token to more than 625,000 eligible wallets. Each token was valued around $1.30, totaling the distribution’s worth at about $812,500.

A “airdrop” refers to giving away, for free, either new or current tokens associated with a blockchain system. This action serves various functions, such as rewarding early supporters or advertising newly created cryptocurrencies.

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2024-11-30 02:45