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Hyperliquid: Stablecoin Wars
Key Insights
- Hyperliquid has one of the most dynamic stablecoin environments in crypto. Stablecoin supply has shifted from giants like Circle, to CDPs, to LayerZero-bridged stablecoins, and now, to Hyperliquid-aligned stablecoins.
- The battle for USDH was for a reserved ticker at the protocol level, but came to represent a rally toward a Hyperliquid-first mentality. Native Markets was the clear winner on that axis, with its sole purpose being to grow USDH.
- USDH has a clear path to growth in the short, medium, and long term. Those paths include adoption as liquidity on HyperEVM, collateral on HIP-3 exchanges, and collateral on HyperCore.
- USDH reached a market cap of $25M in its first week after launching on Sept. 22. Options for further growth include bootstrapping via a token announcement, raising funds, or “Aligned Stablecoin” advantages being enshrined at the protocol level.
- The war for Hyperliquid’s stablecoin market will continue as USDH attempts to disrupt the incumbents, USDC and USDT0. USDH is one of two candidates to be distinguished as an “Aligned Stablecoin,” which could catalyze disruption.
Introduction
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During his 3.5-year tenure at Messari, Patryk contributed across Messari's Diligence, Protocol, and Enterprise research teams. As Research Manager, his primary focus was on Layer-1 and Layer-2 infrastructure and the DeFi ecosystems atop them.
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