Pros and Cons of Investing in Hyperliquid: Will HYPE Be a Millionaire Maker?

More than 17 million digital assets have flooded the crypto market, and Hyperliquid (HYPE) has risen to become a major player in the decentralised finance (DeFi) space.

Hyperliquid has been a huge hit with traders and investors since it came out in late 2024. Its high-performance Layer-1 blockchain and unique way of trading perpetual futures have made it a favourite.

But what is Hyperliquid, and can its native token, HYPE, change the way people make money in the crypto world?

In this detailed guide, CryptoGuide GH will discuss what Hyperliquid is, go over the pros and cons of investing in HYPE, and show you the best ways to invest in HYPE. In the end, we will discuss if HYPE is a good investment or even a token that can make you a millionaire.

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What is Hyperliquid (HYPE)?

Hyperliquid is a decentralised exchange (DEX) that runs on its own Layer-1 blockchain. Hyperliquid aims to streamline trading by making it swift, affordable, and simple.

The trading platform Hyperliquid is different from many DEXs because it operates on its infrastructure and does not rely on mainstream blockchains like Ethereum.

HyperBFT is a unique consensus mechanism that makes sure transactions are done quickly and safely. Because of this, Hyperliquid can handle up to 100,000 orders per second with a block latency of less than one second. This capability makes it a great tool for high-frequency trading.

Hyperliquid is primarily about trading perpetual futures, which lets people guess what the prices of cryptocurrencies will be without actually owning them. This feature works like centralised exchanges (CEXs), but it maintains DeFi’s trustlessness and open nature.

Hyperliquid also has new features like vaults. Vaults help users deposit money for copy trading or market-making strategies and share profits and losses.

This ecosystem runs on the HYPE token, which came out in November 2024. HYPE has many uses. HYPE holders can use the digital currency for governance, staking to ensure network safety, and fee payments with discounts.

HYPE’s tokenomics include a community-focused distribution, with 31% going to early users through a historic airdrop and 38.888% set aside for future emissions and rewards.

The total supply is capped at one (1) billion tokens. Hyperliquid turned down venture capital (VC) funding. This process is highly essential because it puts community ownership ahead of investor sell-offs.

Hyperliquid has grown rapidly. As of June 2025, its market cap had grown to about $14 billion. The increase did not only make it a large-cap digital asset but also one of the top 20 cryptocurrencies by market value.

Hyperliquid above-average performance

In just two years, the platform’s trading volume in perpetuals has grown exponentially. As of June 2025, it held the dominant position in the perpetuals market as a DEX.

Hyperliquid is changing DeFi by making it easier to use, not charging transaction fees, and giving traders better tools to go about their investment activities.

But is it a good investment? Let’s look at the benefits and drawbacks of investing in Hyperliquid.

Pros of Investing in Hyperliquid (HYPE)

What are the Benefits of Putting Money into Hyperliquid (HYPE)?

Investing in HYPE comes with many benefits because of Hyperliquid’s cutting-edge technology and strong market performance. Here are five important reasons why HYPE represents a good investment opportunity:

High-performance blockchain technology

Hyperliquid’s custom Layer-1 blockchain is among the fastest and most efficient in the world. The platform gets sub-second block latency and processes 100,000 orders per second by using HyperBFT. HyperBFT has proven to be faster than many of its competitors.

This scalability attracts traders looking for environments with low latency and high throughput. This increases demand for HYPE as the ecosystem grows.

Furthermore, the platform’s gas-free transactions get rid of cost barriers, which makes it easier for people to use and drives up the value of the token.

Community-centred tokenomics which communicates decentralisation

Hyperliquid didn’t get venture capital funding like a lot of other crypto projects. Instead, they gave 70% of HYPE tokens to community projects, including a historic airdrop in November 2024.

This airdrop gave away tokens worth thousands of dollars to almost 100,000 people. This helped keep people loyal and lowered the risk of private investors selling off their tokens. Huge sell-offs, as many crypto stakeholders know all too well, are responsible for crashing new tokens into irrecoverable zones.

A buyback mechanism also uses more than half of the platform’s revenue to lower the amount of HYPE in circulation. Based on our understanding of basic economic principles, this creates deflationary pressure that could lead to higher prices.

Dominates the perpetual futures sector

Hyperliquid’s market share in DEX perpetual futures has grown since December 2024. It currently commands more than half of the perpetual futures market share. Advanced traders appreciate that Hyperliquid offers up to 50x leverage on assets like Bitcoin (BTC) and Ethereum (ETH), while beginners will find it easy to use.

As perpetuals trading becomes more popular, Hyperliquid’s dominance makes HYPE an important asset in the DeFi world.

Opportunities for staking and passive income

HYPE holders can stake their tokens to help keep the network safe and get rewards, which is a way to make money without doing anything. This feature encourages people to hold onto their investments for a long time. This makes the market less volatile. Hyperliquid’s vaults also let users pool their money for copy trading or market-making. Copy trading, especially, helps novice traders share profits with experienced traders. These new features make HYPE more useful and captivating.

Hyperliquid is seeing growing interest from institutions and ecosystems

Hyperliquid is growing beyond perpetuals. As of June 13, 2025, Hyperliquid’s total value locked (TVL) stood at approximately $1.7 billion. While much of the TVL came from Hyperliquid L1, other decentralised applications (dApps) have fared well. HyperLend, Felix, Morpho, HypurrFi, and Hyperbeat have at least $100 million in TVL.

What’s more, it has added AI-powered analytics and custom dashboards. Its strong infrastructure is also drawing in institutional investors. Investors who have significant capital appreciate the platform’s high performance and deep liquidity.

HYPE’s demand is likely to rise as Hyperliquid adds more assets and features, which could lead to big price increases.

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The Cons of Investing in Hyperliquid (HYPE)

What Are The Drawbacks Of Investing In Hyperliquid (HYPE)?

Investors need to think carefully about the risks that come with HYPE, even though its current metrics look good. Here are five big cons that could hurt its investment potential:

Hyperliquid deals with high volatility and market corrections

HYPE, like most other cryptocurrencies, has prices that are constantly changing. HYPE hit an all-time high of $43.86 on Wednesday, June 11, 2025. The token declined by 11% within the next 48 hours. As of publication, the cryptocurrency powering the DEX was exchanging hands for $38.62. This incident shows how unstable the crypto market is.

Technical indicators like the relative strength index (RSI) show that the market may be overbought, which could cause more pullbacks. As an investor, you should be wary of potential significant changes in price in the future.

Decentralised but have centralised tendencies

Although rejecting the advances of venture capitalists suggests decentralisation, many traders believe that Hyperliquid’s design is more central because it uses a hybrid order book model. This model matches orders off-chain for speed before settling them on-chain, which makes people worry about the platform’s decentralisation status.

While cryptocurrency is known to be decentralised, many coins and tokens operate as central entities. HYPE and Hyperliquid are running under the DEX banner. As a result, their existence could turn off purists, who want systems that are completely decentralised. Consensus and numerous whispers about the topic could slow down HYPE’s growth.

Hyperliquid not grounded within the crypto ecosystem

Hyperliquid is a new player in the crypto space. It started in November 2024.

Unlike well-known projects like Ethereum or Bitcoin, Hyperliquid lacks a long-term track record, making it less tested in the market.

This uncertainty could pose a significant risk, particularly if unforeseen technical or security issues arise.

Given that HYPE is relatively new and still establishing itself in the saturated market, investors should exercise caution when investing significant amounts of capital in the token.

Worries about overvaluation

As of June 13, 2025, Hyperliquid’s TVL-to-market-cap ratio suggests that HYPE is overbought. To understand this, let us consider the TVL-to-market-cap ratio.

As of publication, Hyperliquid TVL was $1.7 billion, and the market capitalisation was about $14 billion. If TVL is greater than market cap, then we can say that Hyperliquid is securing a large amount of value, which could suggest that it is UNDERVALUED.

On the other hand, if TVL is smaller than market capitalisation, then we can say that the token’s market value is higher when compared to the actual value locked in, and this can potentially indicate that a particular token is OVERVALUED.

Having understood the concept of the TVL-to-marketcap ratio, we can all agree that market capitalisation is smaller than TVL, which makes Hyperliquid an OVERVALUED token.

This could mean that the prices are too high. HYPE’s price could go down if the market turns bearish or adoption for the token’s underlying infrastructure goes down.

Regulation and regional restriction

Hyperliquid is global, but it must follow local crypto laws, which may limit access.

Furthermore, USDC is the sole stablecoin available for deposits and withdrawals. This does not make the DEX very flexible. While it supports BTC, ETH, and SOL, users that hold other digital currencies normally have their assets converted to USDC first if they want price stability while trading cryptocurrencies.

Changes in rules or bans in certain areas could slow down Hyperliquid’s growth and lower the value of HYPE.

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How to Invest in Hyperliquid (HYPE)

While it’s easy to invest in HYPE because of its highly accessible nature, you need to plan carefully to make it through the volatile crypto market. To get started, do the following:

Step 1: Pick a trustworthy exchange

As of June 13, 2025, HYPE had been supported by 17 centralised and decentralised exchanges. You can buy HYPE on several reliable exchanges. Please review the fees, security features, and supported regions of each platform to ensure it aligns with your needs. Choose a platform that is excellent for you if you care about privacy. Carefully select an exchange if you want to access more alternate coins (altcoins). Make sure that the exchange works in your country at all times.

Step 2: Create an account

After you choose an exchange, sign up by giving them your email address and creating an unbreakable password which comprises letters, numbers, and symbols. Most platforms need you to do Know Your Customer (KYC) verification, which means sending in proof of identity. This step makes sure you obey the rules and keeps your account safe. After you verify, turn on two-factor authentication (2FA) to make things even safer.

Step 3: Deposit funds by putting money into your account

Put money into your exchange account, usually in USDT or USDC if you are into just crypto. If you are uncertain, you can also choose from various payment options, including bank cards, PayPal, Skrill, and others. USDC is a stablecoin that Hyperliquid mostly supports for bridging to its platform.

Please ensure you have sufficient funds to cover trading fees and any potential price fluctuations.

Step 4: Buy HYPE tokens

Choose HYPE for any exchange of your choice. Then, choose between a market order (to buy right away at the current price) or a limit order (to set a specific purchase price). Market orders are best for assets with a lot of liquidity, like HYPE. Limit orders give you more control in markets that are changing quickly. Check your wallet balance and make sure you bought it.

Step 5: Keep and take care of HYPE

After you buy HYPE, move your tokens to a safe wallet to keep them safe. Ledger and Trust Wallet are two popular wallets. If you want to stake HYPE or join vaults, you should keep some tokens on Hyperliquid’s platform. Utilise tools such as CoinGecko or CoinMarketCap to regularly monitor your investments and understand fluctuations in prices.

Step 6: Make a plan for your investments

Set a clear plan because crypto markets can change quickly. You can either keep HYPE for a long time to earn staking rewards or trade it for a short time to make money.

Don’t put in more money than you can afford to lose. Moreover, think about spreading your investments across different types of assets to lower your risk.

Conclusion: So, is investing in Hyperliquid (HYPE) a good idea?

For investors who want to get into the DeFi sector, Hyperliquid (HYPE) makes a strong case. It is a leader in decentralised finance because it has high-performance blockchains and tokenomics that are driven by the community. It is also the most popular platform for trading perpetual futures.

HYPE is even more appealing because it doesn’t charge transaction fees, offers staking opportunities, and has an ever-growing ecosystem.

The fact that it doesn’t take VC funding builds trust and long-term stability. Many analysts are very positive about Hyperliquid’s revenue-sharing model and deflationary mechanics.

That said, HYPE does have some risks. Some investors may not want to invest because it has a short track record and has brought some traders quick gains, but it could be overvalued.

Volatility is still a worry, as shown by recent price corrections, and regulatory issues could make it harder for people all over the world to use it.

Technical indicators like RSI point to cautious optimism, which means that there could be both bullish rallies and pullbacks.

If you assess the rewards of investing in HYPE tokens and they outweigh the risks associated with investing in Hyperliquid, then you can include a portion of the digital asset in your portfolio.

Who knows, HYPE could be a sleeper hit and the next golden goose within the saturated crypto economy.

Will Hyperliquid Be A Millionaire Maker?

It’s hard to say if HYPE can become a millionaire-maker token because it hasn’t been around for very long. If the market keeps going up and more people start using the platform, bullish predictions say HYPE could trade for triple digits in the long term.

Institutional interest, unique features, and deflationary tokenomics support this potential. Hyperliquid’s buyback mechanism and a greater market share in DEX perpetuals, for example, make it a good place to grow.

But the crypto market is difficult to predict. Its TVL-to-market-cap ratio means that HYPE might be overvalued. If things go wrong, the price could drop to new lows in a short time.

Investors need to think about these risks in light of the platform’s strengths before making decisions. HYPE has the potential to make a lot of money, but whether or not you become a millionaire depends on the market, how many people adopt it, and your investment strategy.

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Conclusion: Should you buy Hyperliquid (HYPE)?

Hyperliquid (HYPE) is a unique mix of new ideas and chances, but it won’t necessarily make you rich. Investors can decide if HYPE is a good fit for their portfolio by weighing its pros and cons, sticking to a strict investment plan, and keeping up with market trends.

Hyperliquid is still a project under development, but it has shown outstanding promise in less than a year.