Parsec Weekly #100
Hyperliquid
Hyperliquid
Since the $HYPE TGE less than a month ago, close to $10 billion of value has been created for early users and community members (airdrop recipients).
Any normal and sane group of people would be selling having received such an immense injection of capital and yes there’s been some selling, but largely, airdrop recipients have been holding, forcing new entrants to buy higher.
The Hyperliquid cult is strong and for good reason as we have seen the exchange metrics simply continue to grow to new heights:
Hyperliquid reached a new all-time high in 24h volume of >$13B
Hyperliquid reached a new all-time high in open interest of >$4.3B
Liquidations reaching new all-time highs too with the recent volatility
This can likely be attributed to 2 reasons. The first of which is simply number go up marketing; $HYPE price goes up, attracts attention, people bridge and experiment to see what the hype is about (pun fully intended), metrics improve, $HYPE price goes up and so on and so forth.
The second, also helped along by a strong $HYPE price, is that the 39% of token supply held back for “future emissions and community rewards” now represents an insane amount of future value and currency which can be distributed to further the Hyperliquid mission:
Even if funding rates are higher on average and liquidity is somewhat worse than centralised venues, the expected value of trading on Hyperliquid is simply higher given this 39% allocation to future emissions and community rewards. This is likely driving a significant portion of the momentum we see in Hyperliquid metrics.
This now incredibly large pool of value will also likely drive excitement for HyperEVM both from a user and developer perspective. I personally think it is very likely that HyperEVM will be a big beneficiary of future incentives to guarantee successful adoption of what is a new and untested product launch from the team.
We are already seeing murmurs from Big DeFi such as Ethena and Curve about potential deployments on HyperEVM alongside the raft of impressive and hungry native teams too.
As volumes and open interest grow to greater and greater levels on the Hyperliquid L1 (the exchange) with whales and institutions dominating the game, experimenting and being an early user of the HyperEVM and native projects likely offers the best opportunity for new retail participants in the Hyperliquid ecosystem.
Stay tuned for further HyperEVM coverage in the New Year and the unveiling of something we’ve been working very hard on here at parsec, but for now it’s Happy Holidays!