Crypto is booming and certain projects like Hyperliquid in particular are drawing significant attention, not just for their innovative approach but also for their community-focused strategies. This article aims to provide some clarity into Hyperliquid and its native token $HYPE, breaking down the recent hype.
What is Hyperliquid?
Hyperliquid is a project developed by Hyperliquid Labs that aims to revolutionize how liquidity is managed in the crypto space. It seeks to provide the reliability and user experience of traditional web 2.0 finance systems but with the advantages of blockchain technology — cheap, instant settlements, and trustless integrations with other apps.
The platform aspires to be the “Amazon Web Services of liquidity,” and is considered a leading perpetual derivatives exchange (perp dex), which is significant given the mixed success of many similar platforms in the past.
Despite many DeFi derivative exchanges failing, Hyperliquid’s approach, combined with a robust tokenomics structure, appears to be setting a new standard in how these platforms use airdrops to cater to their community.
$HYPE Airdrop
$HYPE’s launch included a substantial airdrop, 31% of its total supply, proving that airdrops are far from being an outdated strategy. This large allocation to airdrops underscores the importance of incentivizing and rewarding the community, which is often overlooked by other projects that continue with the old model of significant venture capital (VC) allocations.
How are Exchanges Reacting to $HYPE and Where to Buy it?
Interestingly, major centralized exchanges (CEXs) have not yet listed $HYPE. This might indicate a shift or a strategic decision by the Hyperliquid team to focus on decentralized avenues or simply a current oversight by major exchanges.
So far it cannot be bought or sold on a centralized exchange. But it can be purchased on the Hyperliquid exchange.
What Does the Supply and Demand Look Like for $HYPE?
Contrary to what one might expect, the substantial available supply or float of $HYPE does not necessarily equate to selling pressure. This could be attributed to the strong community and investor base that believes in the long-term potential of the project.
Hype Around $HYPE
In a notable market development, Hyperliquid has emerged as one of the top performers in TVL (Total Value Locked) growth, securing an impressive increase of $250.21M over the past week. This places it third among all major chains, only behind Ethereum’s substantial $4.81B gain and Base’s $302.02M increase.
This significant TVL growth underscores Hyperliquid’s rising prominence in the DeFi ecosystem, particularly impressive for a relatively newer platform.
Conclusion
Hyperliquid and $HYPE represent a fascinating development in the DeFi space, highlighting the evolving strategies of crypto projects to build and maintain investor and community trust.
Advice from industry insiders, particularly venture capitalists with deep knowledge of the crypto market, suggests waiting for airdrops to fully propagate through the system before making investment decisions. The expectation is that Hyperliquid’s valuation might adjust to a more reasonable figure post-launch, estimated around $250 to $450 million FDV, which could be a more opportune time to consider investing.
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