What's Next for Hyperliquid?

Key Insights

• Hyperliquid has cultivated a high-value, recurring user base of performance-driven traders, positioning itself as the only alternative L1 with a clearly defined core cohort.
• By adding new assets like BTC to the native Hyperliquid spot market, the product gains a significant new growth vertical that can help accelerate progress towards displacing CEXs.
• The HyperEVM broadens Hyperliquid’s scope beyond trading, enabling a new wave of third-party DeFi applications while maintaining the efficiency of its onchain order book.
• The Assistance Fund (AF) creates a structurally embedded value accrual mechanism by reinvesting trading revenues into continuous HYPE accumulation, a feature lacking in most DeFi protocols.

Introduction

Hyperliquid’s token genesis event (TGE) was a resounding success, as we had predicted in our pre-TGE valuation report. Since its late-November debut, HYPE’s value has rapidly ascended, reaching a peak fully diluted valuation (FDV) of over $35 billion before retracing to around $23 billion at the time of writing. This trajectory has quickly positioned Hyperliquid among the top 25 crypto assets by market capitalization.