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When a crypto project collapses, the community grits its teeth and dreams of a bright future. But what happens when an entire blockchain collapses? With Hyperliquide, the pressure is palpable: this new generation blockchain must prove itself well beyond its flagship perpetual exchange, otherwise its ecosystem could quickly disintegrate. Decoding an emblematic case.
Hyperliquidity and the ambitious “hyper” strategy
Since its launch in 2024, Hyperliquide has established itself as a key player in the DEX universe. Its flagship perpetual trading platform currently captures 70% market shareoutperforming rivals like dYdX or GMX. With a trading volume of 260 million dollars per dayHyperliquide displays growth that defies predictions.
However, this success is fragile, because blockchain is seriously lacking developers to expand its ecosystem.
VanEckasset manager, recalls that the success of Hyperliquide is based on a precarious balance.
“If the community does not have its expectations met, the prisoner’s dilemma of wealthy HYPE holders could quickly derail.», he notes.
With a market capitalization of $25 billionThe HYPE token has seen its value increase fivefold since its airdrop in November 2024, but it must demonstrate its sustainability beyond market fluctuations.
Why is Hyperliquid making waves? First of all, its hybrid technology combines the speed of an L1 blockchain with the interoperability of an L3 system. This architecture makes it possible to process 100,000 commands per second, well ahead of dYdX’s 2,000.
Following, its pricing modelmore competitive than its competitors, attracts large volumes. Finally, its proximity to Ethereum opens a colossal market: $75 billion in tokens, $111 billion in stablecoins and $400 billion in ETH.
To maintain this frantic pace, Hyperliquide must convince more developers to invest in its ecosystem. Today, only half a dozen decentralized applications run on its EVM testnet. A promising figure, but insufficient to justify such a valuation.
The pitfalls of an ultra-competitive crypto market
Hyperliquid’s success reflects a broader trend: the rise of decentralized crypto exchanges. In December 2024, these exchanges recorded a record volume of 433 billion dollars. But in an industry where open source codes make copying easy, DEXs like Hyperliquid must find strategies to protect themselves from competition.
In one year, Hyperliquide has:
- Captured 70% of the perpetual market;
- Generated $10.5 million in revenue in one week in December;
- Recorded $156 billion in trading volume in one month.
His model, however, is far from infallible. HYPE tokens, distributed via a generous airdrop, risk becoming a weak point if the promises of governance and rewards are not realized. The hyperliquid must also overcoming reluctance around its still closed source code. As the company states in a tweet:
“Open source is important. Our developments will become public once their stability is assured.»
Finally, the delegation program of the foundation, which aims to diversify the network of validators, must come to fruition quickly to reassure a demanding community. If Hyperliquide plays the card of innovation and dynamism, the crypto market does not forgive strategic errors.
Hyperliquid developers must also closely monitor threats from the shadows, including North Korean hackers. Before Christmas, they had already caused massive withdrawals amounting to $256 million. If Hyperliquid aspires to a bright future, it will have to navigate shark-infested waters carefully. The story has only just begun.
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The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
