Hyperliquid (HYPE) is trending on both social media and Google searches. The project, considered one of the high-profile airdrops for 2024, is now in price discovery mode for its native HYPE token.
HYPE continues to gain attention as a potential high-liquidity project. The HYPE token continued its price discovery in December, adding to the social media noise. Hyperliquid has existed as a perpetual futures DEX since May 2023, only gaining more attention as its token generation event and airdrop approached.
HYPE traded above $17.90, near its all-time highs, after trading started on December 1, at around $3.31. HYPE has retained its value despite being airdropped to multiple early users.
HYPE becomes mindshare leader on social media.
The HYPE token and the project gained mindshare along with other big-time narratives, based on Kaito’s social media data.
Current top projects/tokens for mindshare:
👑 BTC
2) ETH
3) SOL
4) AIXBT
5) HYPE pic.twitter.com/AJAf01spE2— Kaito AI 🌊 (@_kaitoai) December 13, 2024
Hyperliquid also helped bring back the meme narrative, which is now ahead of memes in terms of social media mindshare.
After a series of airdrops with disappointing value or Sybill attacks, the project somehow managed to achieve a successful token distribution. Since the November 29 airdrop, HYPE continues to grow in influence as well as price action.
The recent HYPE token appreciation further boosted the value of the airdrop. It reached 200K addresses, sending out 310M HYPE tokens with a value of $3.90 right after the event. Even relatively mid-range trading on Hyperliquid in the past year made traders eligible for significant gains, especially if they held HYPE for the past two weeks after the launch.
The HYPE airdrop also detected up to 27,000 Sybill wallets, operated by around 100 individuals. The Hyperliquid team worked to identify those wallets and decrease their allocated points, thus giving more of the airdropped HYPE to real users.
Until recently, Hyperliquid was mostly known to its community and early adopters. The project has more than 110K followers and has gone on to break out with social media hype.
Hyperliquid revives demand for DEX derivative trading
Hyperliquid aims to revive the perpetual DEX narrative, following the success of Aerodrome on Base. The project mixes decentralized trading with ensured targeted liquidity, leading to highly active and predictable trading pairs.
Hyperliquid has already started trading its native HYPE token, in addition to building meme token pairs. The DEX has even added the recently launched Magic Eden (ME) airdrop token, with up to 5X leverage. The HYPE token also trades with up to 3X leverage. Most of the listings on the DEX reflect community demands and sentiment, as the project is an active producer of social media content.
Hyperliquid offers perpetual derivatives trading, though pricing is derived via oracles. The activity may be decentralized, but for now, it is not tied to an algorithmic price discovery mechanism. Instead, oracles fetch the prices from centralized exchanges. Hyperliquid also increased its exposure and activity after DeBridge opened virtually limitless deposits to the DEX.
Hyperliquid is more similar to dy/dx, another decentralized perpetual DEX. Initially built on Ethereum, dy/dx also plans to migrate to a native L1, to achieve the required speed at a minimal cost.
Hyperliquid offers fully on-chain settlement through its L1 technology with instant finality. The chain is not EVM-compatible, though it has already drawn USDC liquidity for its most active trading pair. USDC for perpetual swaps still uses bridging, while Hyperliquid is working on its EVM-compatible version.
What is peculiar about Hyperliquid is that it relies on USDC bridged on Arbitrum. Trading on the DEX even before the token launch was one of the main prerequisites for the airdrop.
In its early days, Hyperliquid was mostly focused on the native HYPE token. More than 75% of the DEX volumes came from the HYPE/USDC pair, with $182M in daily volumes. The pair boosts the current price discovery of HYPE.
To achieve near-instant settlement, the L1 chain produces a block every 200 milliseconds. The exchange already handles real-time token trading and order-based activities. It also simulates order books, again with near-instant settlement on-chain.
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