In 6 months, Hyperliquid is up 500% from $6.50 to its current price of $37.50. And during all that, it’s climbed up to #13 by market cap of all tokens. A value of $12.5 billion, and remains one of the most bought coins by crypto whales
But is it all hype? Or is there something serious and real backing the newest and biggest DEX in crypto? Today, we get into what the fuss is about and why we expect more growth from here for this altcoin.
What is Hyperliquid?
Hyperliquid has some unique features compared to other DEXes. First, it’s a perp DEX, meaning you can trade with leverage there. Many DEXes don’t allow this, and it’s one of the reasons why so many still trade on Binance, Coinbase, OKX, or Bybit. That’s why you see on this page for trading ETH, there’s an Oracle Price listed. That’s for managing the leverage or liquidations, if needed. Secondly, no VC investors. It’s all bootstrapped and community-funded.
one nice thing about hyperliquid is that since no VCs invested, everyone can feel like an equal buying in the open market!
there are other nice things too, like being a layer 1 blockchain with a built-in order book dex and evm and metrics that go up
hyperliquid pic.twitter.com/zRTL8knSym
— Hypurr (@Hyperintern) May 12, 2025
Third, while it’s a trading protocol, it’s also all on its blockchain. We believe there are too many Layer 1 blockchains already. But the best example of when to create a new one is this. A specific appchain to satisfy the needs of a group of users. And Hyperliquid’s L1 does just that. It’s fast to process many transactions and has the security that traders expect. They can get this speed with security because they sacrifice decentralization. It’s the least important of the 3 in the blockchain trilemma to traders.
Hyperliquid achieves this speed of less than 1-second blocks by having only 25 validators. And at least 5 of them are controlled by the Hyper Foundation team. You can also provide the DEX with liquidity through its vaults. They pay up to 14%, or use a User Vault to invest in, like backing a trader and earning part of their returns. These are just a few of the ways Hyperliquid is way more decentralized and transparent than any centralized exchange. Let’s look into that some more.
Why Is It Getting So Much Attention Lately?
So why does it seem like Hyperliquid is everywhere? There’s a cultural thing going on with Hyperliquid that people just love.
The product just works and does what it’s supposed to. In fact, other than relying on Arbitrum as the way to deposit memecoins, everything else works exactly the way you’d expect. It works great. AND there’s no token extraction plan going on around the $HYPE token. Instead of trying to earn as much as possible from holders, $HYPE is DEFLATIONARY. On every trade, they buy back and burn $HYPE. The team is burning a little more than 1000 $HYPE per day.
Hyperliquid Morning!
The Assistance Fund bought back $1.1 Million of $HYPE Yesterday.
Token burn has increased to 1000 $HYPE / Day
Thanks to the new fee structure that started on 05.05 Hyperliquid makes 20% more money on the same volume.
This leads to more $HYPE being… pic.twitter.com/lJz607Y0Fg
— Tobias Reisner (@reisnertobias) May 7, 2025
The community loves this. And they know the more they trade, the more $HYPE burns, thus increasing the value of the $HYPE they hold. Everyone wins. They don’t just put community first. They see EVERYONE as the community. Users, holders, investors, and all stakeholders. For most projects, the only community that matters to them is the VC and private investor community. But not so with Hyperliquid.
$500M-1B in annualized $HYPE buybacks.
500K-1M in annualized $HYPE burns via HL spot.All HyperEVM gas fees also burned.
Airdrops, staking rewards and S3 points? All while being deflationary, Hyper sound money.
Hyperliquid. pic.twitter.com/wwNHFV7Lzj
— NMTD.HL (@NMTD8) March 6, 2025
At the current rate, the team is burning 22-25% of its supply each year. Very aggressive. Take the true crypto ethos of doing better community-wide for everyone than existing options. Then add this amazing burn program, and the $HYPE token performance together. They all feed off each other in a big way.
1️⃣ The recent price rally of $HYPE appears to correlate strongly with rising trading volume and new user growth on @HyperliquidX.
2️⃣ Additionally, the first chart shows a consistent daily burn of $HYPE, creating a deflationary pressure that further supports upward price… https://t.co/A9zL8QkwPW pic.twitter.com/hvz5n0uuTZ
— Merkle3s Capital (@Merkle3sCapital) May 26, 2025
The $HYPE token is now in the top 15 of total market cap coins in 6 months and is up over 110% in the last 30 days. And these are the reasons why. This is what real product-market fit looks like.
How Hyperliquid Challenges the Existing System
Another reason people love Hyperliquid is how it’s challenging the existing system. Tier 1 exchanges like Binance, Coinbase, OKX, and Bybit do a good job getting most people to buy crypto for the first time. We also know through their system of market makers that they are often trading against us. Or they are scouting out stop losses in their data to liquidate traders on their exchanges. It’s a well-known fact by now.
More breaking news: On page Page 129 of 131 of the new @Nasdaq Rule 5712 to allow for trading of a new type of financial vehicle holding up to 100% crypto requires any participating Market Maker trading the vehicle to register and be 100% transparent.
This is it people. The… pic.twitter.com/SIEs1VoWaC
— MartyParty (@martypartymusic) February 19, 2025
And with Hyperliquid, they aren’t sending money to Wintermute. Plus, when the exchange makes $$, $HYPE holders make money. They share in protocol revenue from fees or funding rates. And as I said earlier, some of those transaction fees are part of the burn program.
On any given day, the number of trades of all other tokens outnumbers the trades in Bitcoin, Ethereum, and Solana by 4 to 1. This is unheard of in exchange-style trading. In all markets, Bitcoin or stablecoins are by far the most traded asset. But at Hyperliquid, the community gets to trade the coins it wants, as long as there’s a market available. It’s the best of what centralized and decentralized exchanges have to offer, all in one place.
Add to that the 2000-ish per day or 50k monthly new users, all bringing in more capital to trade on the DEX. It’s pretty clear why the growth numbers and $HYPE token growth are so amazing. Hyperliquid’s amazing growth means we are going to be covering it more in future videos, including:
- The $HYPE and $HLP tokens.
- Ecosystem opportunities.
- How to trade on it safely and profitably, and more.
What would you like us to cover about Hyperliquid? Let us know in the comments below.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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