What is Hyperliquid (HYPE)? The revolution of decentralized trading
Hyperliquid is a Layer 1 (L1) blockchain specifically designed to optimize decentralized trading. It offers an ultra-fast platform with zero gas fees, focused on perpetual futures trading and equipped with advanced tools for traders of all levels.
However, what truly skyrocketed its popularity is its token HYPE, which has captured the attention of the entire crypto community following a massive airdrop in November 2024. In this article, we will explore in detail what Hyperliquid is, how it works, and why it is gaining traction in the crypto space.
What is Hyperliquid?
Hyperliquid is an L1 optimized for on-chain trading. Unlike other decentralized exchanges (DEXs) that rely on congested and costly networks, Hyperliquid has its own network, allowing it to process transactions in less than a second and handle over 100,000 transactions per second (TPS). This provides a significant advantage in speed and efficiency, enabling traders to execute trades quickly and without intermediaries.
Key Features of Hyperliquid
- 100% On-Chain Order Book: While other DEXs rely on hybrid systems that obscure part of the process, Hyperliquid executes everything directly on the blockchain, ensuring maximum transparency.
- Perpetual Futures with up to 50x Leverage: You can trade BTC, ETH, and SOL with the same advanced tools offered by centralized exchanges, but without intermediaries.
- Tools for Pro Traders: Stop-loss, take-profit, copy trading, and laddered orders are just some of the features that help traders implement more effective strategies.
- Institutional-Grade Security: Hyperliquid implements its own consensus mechanism called HyperBFT, along with regular audits and multi-signature systems to prevent hacks and price manipulation.
Additionally, the team behind Hyperliquid comes from prestigious universities such as Harvard, MIT, and Caltech, as well as leading trading firms like Citadel and Hudson River Trading. Most interestingly, Hyperliquid has not accepted venture capital (VC) funding, meaning its development is 100% community-driven rather than influenced by external investors.
What is HYPE?
HYPE is the token that powers the entire Hyperliquid ecosystem. Beyond being just another cryptocurrency, it has multiple functions within the platform:
- Governance: HYPE holders can vote on key decisions regarding the protocol’s development and policies.
- Staking: Locking HYPE allows you to earn rewards and contribute to network security.
- Trading Fee Discounts: Paying trading fees with HYPE grants discounts on commissions.
- Deflationary Mechanism: 54% of Hyperliquid’s revenue is used to buy back and burn HYPE, reducing its supply over time and increasing its scarcity.
Moreover, in November 2024, Hyperliquid distributed one of the largest airdrops to date, benefiting over 100,000 users.
Why is Hyperliquid the Talk of the Town?
With monthly trading volumes exceeding $20 billion and ultra-competitive fees (0.02% maker, 0.025% taker), the platform generates millions in revenue—much of which is allocated to buying and burning HYPE.
The Airdrop That Changed the Game
The November 2024 airdrop built a loyal community of traders, some of whom received up to $500,000 in tokens. Unlike speculative pumps of other coins, Hyperliquid has cultivated a user base that genuinely utilizes its technology.
HYPE is Ultra-Deflationary
With an aggressive buyback model and no new emissions for a year, HYPE’s supply is shrinking at an annual rate of 26%.
Hyperliquid is not just another DEX; it is an L1 blockchain proving that decentralized trading can be fast, efficient, and profitable. Its combination of cutting-edge technology, low fees, and a solid revenue model has positioned it as the future of on-chain trading.
HYPE, in turn, is not just another token. Its deflationary mechanism, strong adoption, and utility within the ecosystem make it a crypto asset with significant appreciation potential.
If you're interested in the DeFi world and want to stay updated on the revolution happening with Hyperliquid, keep an eye on our weekly summaries. The new era of decentralized trading is here!
