To maintain the market value of around $25 billion for its native token, the Layer-1 blockchain network Hyperliquid must foster a strong and active developer community. This was stated by asset manager VanEck in a research note dated January 6th.
Since the introduction of its HYPE token during a November airdrop, Hyperliquid has risen significantly in value and is now among the most valuable blockchains. Nevertheless, it’s worth noting that VanEck mentioned that Hyperliquid’s early stage smart contract platform hasn’t drawn many developers yet.
As a crypto investor, I find myself contemplating the potential implications if Hyperliquid fails to meet the growth targets set by its community. In such a scenario, the predicament often referred to as the “Prisoner’s Dilemma” could potentially unfold for many newly wealthy $HYPE holders. VanEck’s observation underscores this possibility.
“Once again, we can see another Icarian tale about crypto hubris.”
Rapid growth, high expectations
Starting from its debut in 2024, Hyperliquid’s main perpetual futures trading platform has taken about 70% of the market, outpacing competitors like GMX and Dydx. Currently, it processes around $260 million worth of trades daily, according to VanEck.
Hyperliquid’s surge mirrors the overall expansion of decentralized trading platforms (DEXs), as they reached unprecedented monthly trading volumes of $433 billion in December, data from VanEck shows.
Everlasting futures, often referred to as “ever-rolls” or simply “perps,” are financial instruments that enable traders to either purchase or sell an asset at a later time without any specific expiration date.
2024 saw Hyperliquid’s airdrop being highly praised as the most triumphant token distribution event of the year.
In 2024, Hyperliquid’s airdrop was celebrated far and wide for being the most prosperous token generation event of the year.
In a little over a month since its launch on November 29th, the value of Hyperliquid’s HYPE token has soared by more than five times its original price. It peaked at around $34 per token in December, but has since dipped to roughly $25 as of January 7th, according to CoinGecko. Interestingly, VanEck stated that Hyperliquid now ranks among the top 13 most valuable cryptocurrency projects.
This statement implies that “Hyperliquid’s expansion trajectory is based on transforming into a versatile blockchain, capable of hosting various applications beyond its thriving Perp DEX, as stated by VanEck.
As per VanEck, decentralized exchanges like Hyperliquid often struggle to maintain sustainable competitive advantages over the long term. This is primarily due to the fact that many decentralized exchanges are built upon open-source software, allowing for their key features to be easily replicated by others.
By 2025, Hyperliquid plans to debut an Ethereum Virtual Machine (EVM) platform for smart contracts. VanEck highlights that this move is significant for expanding the L1’s income sources and validating the high value assigned to HYPE.
Currently, over half a dozen applications exclusive to Hyperliquid are actively operational on the EVM’s test network. These applications, as reported by ASXN, a Web3 researcher, even boast thousands of users in certain instances.
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2025-01-07 19:49