Crypto’s New Darling: Seriously?

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It appears a certain ‘Hyperliquid’ – a name redolent of anxieties regarding the modern condition, wouldn’t you agree? – has contrived to capture, in less than a year, a rather substantial slice of the perpetuals pie, nearly ten percent of both Bitcoin and Ether’s volume. One hears whispers that it has even begun to cast a shadow over the established Centralized Exchanges, those grey, monolithic structures of the financial world. Imagine! 🙄

And yet, despite this… *unmatched* growth (a word one encounters with irritating frequency these days), the token itself, HYPE – a name, frankly, begging for irony – languishes at a discount, a truly depressing one, to both Solana and Ethereum. One is compelled to ask, is this merely a temporary market eccentricity, or a profound commentary on the fickle nature of investor sentiment? The debates, naturally, are as plentiful as they are pointless.

HYPE: A Canine in the Wolf’s Clothing?

The gentlemen at “The DeFi Report” (who, one suspects, are rather heavily invested) declare that Hyperliquid took some $409 million in user fees these past six months, exceeding Ethereum by a flamboyant 23

It’s admirable, in a thoroughly modern, somewhat cynical way, that Hyperliquid eschewed the usual venture capital courtship. No shadowy figures pulling strings from behind the scenes, no grasping hands seeking their pound of flesh. Instead, they gifted a significant portion of the token supply – 31

Furthermore, a foundation budget of 6

The core of Hyperliquid’s appeal, it seems, lies in its high-throughput, on-chain central limit order book, offering perpetuals and spot trading with the speed of a nervous telegraph operator and the fees of a moderately generous nobleman. It mimics the efficiency of a centralized exchange while, simultaneously, basking in the glow of DeFi’s supposed transparency. A fascinating paradox.

Trading activity, one is assured, is ‘at an all-time high.’ Daily volumes fluctuate between a respectable $10 and $20 billion, with open interest across assets reaching $13 billion. This bestows upon the platform a significant (9-11

A truly remarkable proportion of revenue is channeled into token buybacks. July alone witnessed $92.2 million in fees translate into $90.2 million of HYPE repurchases. The analysts speak glibly of a “buyback yield” accruing directly to holders, a novel concept that renders traditional fintech valuations – and the overflowing coffers of their executives – positively archaic.

Hyperliquid, ambitious creature that it is, has also begun to expand its horizons, venturing beyond the realm of perpetuals DEXs into the construction of its own Layer 1 ecosystem. Their ‘HyperEVM’ allows developers to construct upon the protocol’s liquidity without the onerous task of maintaining their own exchanges. Coupled with integrations across various digital wallets (Phantom, Rabby, Rainbow, one wonders if there will be a shortage of names ending in ‘by’) and ancillary services like Hyperlend and Unit Protocol, the platform seeks to weave an intricate web of network effects.

In terms of annualized volume, Hyperliquid has processed an astonishing $1.95 trillion, dwarfing its decentralized competitors. Its open interest in Bitcoin and Ether now represents 32

Shadows and Uncertainties

Naturally, risks persist. The looming presence of established players like Coinbase and Robinhood, a somewhat precarious reliance on a limited validator set, and lingering questions regarding long-term sustainability, considering that a relatively small coterie of active traders generates the majority of revenue. These are matters that demand, if not outright concern, at least a degree of cautious observation.

Despite these caveats, analysts maintain that, given HYPE’s $48 billion fully diluted valuation and $16 billion circulating supply, its buyback-driven model and growing market penetration suggest the token remains, shall we say, *undervalued* in relation to Solana and Ethereum. One is left to wonder if the market simply suffers from a surfeit of optimism regarding the more established players, or a deep-seated distrust of anything new, anything… *hyperliquid*.

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2025-08-31 18:23