In his view, the biggest threat to crypto’s progress isn’t a sudden “black swan” event—a rare and unexpected collapse—but something more gradual and concerning: becoming irrelevant.
“If Hyperliquid fails, it won’t be because of the protocol,” Yan said. “It will be because we didn’t create something truly valuable for the world.”
A Slow Decline Is the Bigger Risk
Hyperliquid, a decentralized derivatives exchange built on its own blockchain, has grown rapidly in the past year. But Yan’s comments reflect a deeper concern shared by many founders in the DeFi space: that innovation could stall if projects fail to solve real-world problems. He described “marginalization” as a slow erosion of relevance—a future where DeFi exists, but few people care because it hasn’t delivered enough value beyond speculation.
This idea resonates at a time when global DeFi activity has plateaued. According to DeFiLlama, total value locked (TVL) across all protocols has hovered around $70 billion for months, far below its $180 billion peak in 2021. The excitement around yield farming and token launches has faded, and projects that once promised to reshape finance are now struggling to find sustainable use cases.
Yan believes that the next phase of DeFi must focus on long-term utility, not hype. He urged developers to reduce reliance on off-chain assumptions—like external price feeds or opaque collateral backing—and instead build systems that are verifiable directly on the blockchain. This means stronger transparency, better data consistency, and fewer points of failure.
More About Hyperliquid
Hyperliquid has added a new trading pair, MEGA-USD hyperps, allowing users to long or short the upcoming MegaETH token before its official launch. Traders can now speculate on MegaETH’s future price with up to 3x leverage, giving them a way to gain exposure or hedge positions ahead of the token’s debut.
By community request, Hyperliquid has listed MEGA-USD hyperps. You can now long or short the unlaunched MegaETH token with up to 3x leverage. pic.twitter.com/PUWToNdmd0
— Hyperliquid (@HyperliquidX) October 22, 2025
This move highlights Hyperliquid’s growing role in offering innovative on-chain derivatives markets, where users can trade synthetic versions of anticipated assets in a fully decentralized environment.
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The post Hyperliquid Says DeFi Risks Irrelevance Without Real Value appeared first on Altcoin Buzz.
