Hyperliquid’s HYPE Token Explodes! What’s Behind the 200% Rally?

The HYPE token, launched by Hyperliquid, has seen an impressive surge of over 200% since its token generation event (TGE) on November 29. Currently trading at $12.30, up more than 36% in the last 24 hours, the token’s rapid price increase has pushed its fully diluted valuation (FDV) above $12 billion.

With 333 million tokens circulating out of a total supply of 1 billion, HYPE now has a market capitalization of around $4 billion.

Hyperliquid’s Successful Launch

Hyperliquid, a decentralized finance (DeFi) protocol, debuted on November 29 with HYPE priced at $3.90. The total value of the airdrop event reached $1.2 billion, with 31% of the total supply distributed to the community. Since then, the price has continued to rise, reaching an all-time high of $12.95 on December 4.

Why Investors Are Excited About HYPE

The excitement around HYPE goes beyond just its price. Several factors have contributed to the positive sentiment. First, the token generation event was smooth, with no technical issues or complaints about the distribution. Notably, there was no allocation for venture capitalists (VCs) or private investors, which helped create a fairer distribution. The distribution also shows good decentralization, with only a few large wallets holding a significant portion of the supply.

The TWAP (Time-Weighted Average Price) feature is another reason users are enthusiastic. It divides large orders into smaller ones executed in 30-second intervals, ensuring a maximum slippage of 3%.

There is strong demand for HYPE, reflected in the large difference between buy and sell orders through TWAP. Additionally, HYPE is deflationary, burning about 26% of its supply each year.

HYPE’s Growing Investor Interest

HYPE’s growing investor interest is clear from its 24-hour trading volume of over $279 million. Hyperliquid has quickly become a leader in both trading volume and total value locked (TVL) among decentralized perpetual swap platforms. Since its launch, Hyperliquid’s valuation has surged by more than 514%, with its current market cap exceeding $4.2 billion.

This rapid growth has sparked interest in which other projects could replicate Hyperliquid’s success.

Other Projects with Noteworthy Airdrop Strategies

Other projects are also gaining attention with their airdrop strategies:

Arkham: Arkham, which recently shifted from blockchain services to a perpetual exchange, mirrors Hyperliquid’s airdrop strategy by rewarding users who trade and refer new participants.

Grass: Grass distributed 10% of its total token supply in its first airdrop on Solana. Participants earned tokens by contributing computing power and engaging with the network. In its second phase, Grass plans to distribute 17% of the total supply to the community.

LayerZero: LayerZero allocated 15% of its ZRO token supply for future incentivized activities. An additional 23.8% is reserved for users and developers. Analysts suggest engaging with LayerZero’s bridge services and participating in its Discord roles program to earn more tokens.

Wormhole: Known for its multi-chain interoperability, Wormhole’s early airdrop strategy has been successful. While only 6% of its W token supply is reserved for community rewards, its focus on high-value transactions shows potential for growth as adoption increases.

The Future of Decentralized Platforms

Zeta Markets co-founder Anmol Singh pointed out that the high trading volumes surrounding HYPE’s launch indicate the growing importance of decentralized exchanges (DEXs) and perpetual platforms. Singh predicts that by 2025, most token launches will take place on DEXs, making them the preferred choice over centralized exchanges (CEXs).

FAQs

With a strong start and promising growth, the future looks bright for Hyperliquid and its rapidly rising token.