The cryptocurrency market continues to buzz with new opportunities, yet few projects capture the imagination like Hyperliquid (HYPE).
As a decentralised exchange (DEX) built on its own Layer-1 blockchain, Hyperliquid has surged into the spotlight.
The project has been able to gain ground within the saturated blockchain-based economy because of its groundbreaking airdrop and innovative technology.
But is HYPE a golden ticket to wealth or just another fleeting crypto craze?
In this article, CryptoGuide GH dives deep into Hyperliquid’s ecosystem, dissecting its origins, tokenomics, partnerships, price performance, and more to answer the burning question: Should you buy Hyperliquid?
Let’s dive straight into this dynamic project with clarity and precision.
Hyperliquid at a Glance
Hyperliquid is not your average decentralised exchange. Launched in 2022, it operates on a custom Layer-1 blockchain designed for high-performance decentralised finance (DeFi) applications.
Unlike traditional DEXs that rely on automated market makers (AMMs), Hyperliquid boasts a fully on-chain order book, delivering low-latency, transparent trading with zero gas fees.
This innovative approach mimics the efficiency of centralised exchanges (CEXs) while preserving the anonymity and control of DeFi.
Consequently, Hyperliquid has carved a niche in perpetual futures trading. Under this market, the DEX allows users to speculate on crypto prices with up to 50x leverage without owning the underlying assets.
The platform supports a wide array of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Sui (SUI).
Its flagship product, the Hyperliquid DEX, processes up to 100,000 orders per second, with block times under one second. This makes it a powerhouse for traders seeking speed and reliability.
Moreover, Hyperliquid’s native token, HYPE, serves multiple purposes. HYPE is actively used in governance, staking, and trading fee discounts. Such activity has cemented the token’s role as the ecosystem’s lifeblood.
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Why Was Hyperliquid Formed?
Hyperliquid emerged to address the pain points plaguing traditional DEXs. They are high fees, slow transactions, and limited liquidity.
Co-founded by Jeff Yan and iliensinc, Hyperliquid aims to revolutionise DeFi by blending centralised exchange efficiency with decentralised principles.
The team, led by Jeff, a former Google employee, rejected venture capital (VC) funding, opting for a community-driven model. This bold move allowed Hyperliquid to prioritise user-centric initiatives, setting it apart from projects beholden to private investors.
The platform’s core mission is to create a high-performance, transparent financial ecosystem.
By leveraging its proprietary HyperBFT consensus mechanism, inspired by Hotstuff, Hyperliquid ensures rapid transaction finality and robust security.
Additionally, its focus on perpetual futures trading caters to sophisticated traders, offering tools like partial take-profit and stop-loss orders.
As a result, Hyperliquid has positioned itself as a trailblazer in DeFi. Many analysts believe it is here and could challenge giants like Ethereum and Solana with its scalable, cost-effective infrastructure.
How Many Hyperliquid (HYPE) Tokens Are In Supply?
Understanding Hyperliquid’s tokenomics is crucial for assessing its investment potential. The HYPE token has a total supply capped at 1 billion, with approximately 333.93 million tokens in circulation as of June 2025.
This represents about 33% of the total supply, with the remaining tokens allocated strategically to foster long-term growth. Specifically:
- Genesis Airdrop (31%): On November 29, 2024, Hyperliquid conducted one of the most lucrative airdrops in crypto history, distributing 310 million HYPE tokens to 94,000 eligible users, averaging $45,000–$50,000 per recipient.
- Future Emissions & Community Rewards (38.8%): These tokens are reserved for ongoing incentives and platform growth.
- Core Contributors (23.8%): Locked for one year and vested until 2028, ensuring team alignment with long-term goals.
- Hyper Foundation Budget (6%): Funds platform development and operations.
- Community Grants (0.3%): Supports ecosystem projects and innovation.
- HIP-2 Allocation (0.012%): Reserved for specific protocol upgrades.
Notably, Hyperliquid’s tokenomics emphasise community ownership, with 76.2% of the supply earmarked for users. The platform also employs a buyback-and-burn mechanism, reducing circulating supply over time.
For instance, more than 100,000 HYPE tokens had been burnt, enhancing scarcity and potentially driving value. However, future token unlocks, starting late 2025, could introduce selling pressure if demand doesn’t keep pace.
Hyperliquid Partnerships
Strategic partnerships are a cornerstone of Hyperliquid’s growth strategy, amplifying its reach and credibility.
While specific partnerships are not extensively detailed in public records, Hyperliquid has integrated with key players in the DeFi ecosystem.
For example, it supports bridging USDC and USDT from Arbitrum, an Ethereum Layer-2 solution, enabling seamless asset transfers. This integration enhances liquidity and accessibility, making Hyperliquid a go-to platform for traders.
Furthermore, Hyperliquid’s collaboration with data aggregators like CoinMarketCap and CoinGecko ensures real-time price tracking and market visibility.
The platform’s listing on major centralised exchanges like Gate, Bitget, KuCoin, and CoinW has boosted trading volume. HYPE recorded about $340 million in 24-hour volume on June 14, 2025.
Additionally, Hyperliquid’s exploration of HyperEVM, a framework for Ethereum-compatible smart contracts, signals potential partnerships with Ethereum-based protocols.
Since Ethereum remains the biggest smart contracts network by total value locked (TVL), this exploration could further expand Hyperliquid’s ecosystem.
These alliances, combined with Hyperliquid’s community-first ethos, position it for sustained growth.
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Hyperliquid Price Performance 2024
Hyperliquid’s price trajectory in 2024 was nothing short of remarkable. Launched on November 29, 2024, at $3.57, HYPE skyrocketed to an all-time high (ATH) of $35.02 by December 22, a staggering 1,000% increase in just weeks.
This meteoric rise was fuelled by the hype surrounding its airdrop, which distributed billions of dollars in value to the community.
Unlike typical airdrops, where tokens often crash post-distribution, HYPE defied expectations, surging to $35 as market sentiment turned bullish.
The platform’s TVL also soared, contributing to a market cap exceeding $8 billion by year-end. High trading volumes, averaging $500–$700 million daily, underscored Hyperliquid’s growing dominance in the DeFi space.
However, late December saw a correction, with HYPE stabilising around $20–$25, reflecting profit-taking and market volatility.
Despite this dip, Hyperliquid’s ability to maintain a top-20 market cap ranking highlighted its resilience and investor confidence.
Hyperliquid Price Performance 2025
In 2025, HYPE experienced significant fluctuations but maintained an upward trend. Starting the year at around $20–$25, the token dipped to a low of $10.21 in April, driven by a broader crypto market crash and concerns over North Korea-linked wallet activity.
However, Hyperliquid swiftly addressed these concerns, reinforcing its security measures and restoring investor trust. By May, HYPE rebounded to $26.83, gaining 10% in a single day and stabilising in the $19–$27 range.
As of June 14, 2025, HYPE trades at approximately $40, down 9% from its ATH of $43.86 on June 11. Despite this correction, the token has risen 15% from its weekly low of $34.63, outperforming the global crypto market, which is down.
With a market cap of approximately $13.5 billion and a 24-hour trading volume of $685.79 million, Hyperliquid ranks among the top 15 cryptocurrencies.
Analysts attribute this resilience to Hyperliquid’s robust fundamentals. This includes its high-performance blockchain and deflationary tokenomics, which will burn 6–7% of the supply annually.
Pros of Buying Hyperliquid
Investing in Hyperliquid offers compelling advantages, making it an attractive option for DeFi enthusiasts. Here are the key pros:
- Innovative Technology: Hyperliquid’s Layer-1 blockchain, powered by HyperBFT, delivers unmatched speed and scalability, processing 100,000 orders per second with sub-second block times. This technological edge positions it as a leader in DeFi.
- Community-Centric Tokenomics: With 76.2% of the token supply allocated to the community and no venture capital backing, Hyperliquid prioritises user interests, fostering trust and long-term loyalty.
- Deflationary Mechanism: The buyback-and-burn strategy, with $1 million in daily HYPE repurchasing, reduces supply and could drive price appreciation over time.
- Lucrative Airdrop Precedent: The 2024 airdrop, valued at $1.2 billion, rewarded early adopters generously, signalling the potential for future community incentives.
- High Trading Volume: Daily volumes exceeding $170 million reflect strong market activity, ensuring liquidity and price stability.
- Versatile Utility: HYPE tokens enable governance, staking (with 2–2.5% APY), and trading fee discounts, enhancing their value within the ecosystem.
- Regulatory Resilience: Hyperliquid’s decentralised nature and zero-KYC approach make it appealing in regions with stringent crypto regulations.
These factors collectively make Hyperliquid a standout investment in the DeFi landscape, particularly for those seeking high-growth opportunities.
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Cons of Buying HYPE
Despite its promise, Hyperliquid carries risks that investors must weigh carefully. Here are the primary cons:
- Market Volatility: HYPE’s price has swung dramatically, from $3.57 to $43.83, and a 31% drop in early 2025 highlights its susceptibility to market swings.
- Token Unlocks: Scheduled releases of the remaining 66% of the token supply through 2028 could dilute value if demand lags.
- Security Concerns: Allegations of North Korea-linked activity in 2024, though unproven, caused a $256 million outflow and a 25% price drop, underscoring potential vulnerabilities.
- Competition: Hyperliquid faces stiff competition from established DEXs like dYdX, Uniswap, PancakeSwap, DoDo, and GMX, which could limit its market share.
- Overvaluation Risk: Its TVL-to-market-cap ratio shows that market capitalisation is far higher than value locked in June 2025. Some analysts suggest HYPE may be overvalued, potentially deterring conservative investors.
- Regulatory Uncertainty: While Hyperliquid benefits from a pro-DeFi stance in some regions, evolving global regulations could impact its operations or token value.
- Limited Staking Rewards: Current staking yields of 2–2.5% are modest compared to other DeFi platforms. This could potentially discourage passive income seekers.
These risks highlight the need for thorough research and a high risk tolerance before investing in HYPE.
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How to Invest in HYPE Using the DEX
Getting started with Hyperliquid is straightforward, but it requires careful steps to ensure security and efficiency. Here’s how to invest in HYPE:
- Set Up a Wallet: Download a compatible Web3 wallet like Trust Wallet or MetaMask. Ensure it supports Arbitrum for bridging assets.
- Bridge Assets: Transfer USDC or USDT from Arbitrum to Hyperliquid’s platform at app.hyperliquid.xyz/trade. Follow the bridging instructions to deposit funds securely.
- Buy HYPE: Trade HYPE on Hyperliquid’s DEX or centralised exchanges like Gate or Bitget. The HYPE/USDC pair is the most liquid, with high trading volume.
- Store Securely: Move HYPE to a hardware wallet, Web3 wallet, or paper wallet for safekeeping. Avoid leaving large amounts on exchanges to minimise risk.
- Stake for Rewards: Use Hyperliquid’s staking feature to earn 2–2.5% APY, contributing to network security and generating passive income.
- Monitor Investments: Track HYPE’s price and market trends on CoinMarketCap or CoinGecko to stay informed.
Always invest only what you can afford to lose, given the crypto market’s volatility. Always remember that having time in the saturated crypto market is far better than trying to time the market.
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HYPE Price Predictions: What Are Analysts and Experts Advising?
Price predictions for HYPE vary widely, reflecting the crypto market’s unpredictability. Below are aggregated forecasts from reputable sources, offering a glimpse into potential trajectories:
- 2025: Many analysts are pretty modest in their predictions. The majority of them predict HYPE could reach $41.39–$56.90, with an average of $28.02 to $36.78. CoinCodex suggests a high of $117.69, driven by platform growth and new partnerships. However, a potential low of $14.65 remains possible if market volatility persists.
- 2026: Projections range from $19.85 to $90, with an average of $37.36–$50. Continued adoption and HyperEVM integration could fuel this growth.
- 2027: HYPE may hit $61.58–$105, averaging $43.31–$75, as Hyperliquid solidifies its DeFi dominance.
- 2028: Forecasts suggest a high of $79.02–$130, with a potential low of $33.68, driven by expanded offerings like spot trading and staking.
- 2030: Long-term predictions are bullish, with HYPE potentially reaching $93.29–$138.16, averaging $70–$120. Some sources, like CryptoPolitan, project a high of $197.49 by 2031.
- 2040: Flitpay estimates a maximum of $213.53, though long-term forecasts are speculative due to market uncertainties.
Experts emphasise that HYPE’s growth hinges on adoption, regulatory clarity, and technological advancements.
While bullish sentiment prevails, analysts urge caution due to volatility and competition.
Monitoring whale activity and technical indicators can provide further insights.
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The Bottom Line: Should You Buy HYPE?
Deciding whether to buy Hyperliquid depends on your risk tolerance and investment goals. HYPE’s innovative technology, community-driven tokenomics, and high trading volume make it a compelling choice for those bullish on DeFi.
Its ability to process 100,000 orders per second and eliminate gas fees positions it as a game-changer, potentially rivalling centralised exchanges like Binance, Coinbase, and Bybit.
Moreover, the deflationary buyback-and-burn mechanism and lucrative airdrop precedent enhance its appeal.
However, the crypto market’s volatility, upcoming token unlocks, and competitive pressures warrant caution.
Security concerns, though addressed, highlight the risks of newer blockchains. For risk-tolerant investors seeking high-growth opportunities, HYPE offers significant upside, especially if adoption continues.
Conservative investors may prefer to wait for price stabilisation or clearer regulatory landscapes.
Whatever happens, you know that investing in Hyperliquid, like all digital assets, comes with risk.
If you analyse the risks and rewards of investing in HYPE, and if the potential rewards exceed the associated risks, you can include this token in your investment portfolio.
While many DEX-backed tokens have failed, HYPE is backed by a strong underlying infrastructure which can be used in many spheres of the blockchain economy.
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Can You Mine Hyperliquid?
Hyperliquid cannot be mined in the traditional sense, as it operates on a proof-of-stake (PoS) consensus mechanism via HyperBFT, not proof-of-work (PoW).
Instead, users can stake HYPE tokens to secure the network and earn rewards, currently yielding 2–2.5% APY.
Staking is accessible through the Hyperliquid platform, offering a passive income stream without the energy-intensive process of mining.
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Will Hyperliquid Go Up?
Predicting HYPE’s price trajectory is challenging, but current trends and fundamentals suggest potential growth.
Analysts forecast prices of $41.39–$56.90 by the end of 2025, with long-term highs of $138.16–$197.49 by 2030.
Factors like increasing DeFi adoption, HyperEVM integration, and token burns could drive prices higher. However, market volatility, regulatory shifts, and token unlocks pose risks.
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Is Hyperliquid a Good Crypto?
Hyperliquid stands out as a strong contender in the DeFi space. Its high-performance blockchain, community-focused tokenomics, and robust trading volume position it for success.
The platform’s ability to combine CEX efficiency with DEX transparency appeals to both retail and institutional traders.
While risks like volatility and competition persist, Hyperliquid’s innovative approach and growing ecosystem make it a promising investment for those willing to navigate the crypto market’s uncertainties.
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Conclusion
In conclusion, Hyperliquid (HYPE) offers a unique blend of cutting-edge technology and user-centric design. This has contributed to its uniqueness in the crowded DeFi landscape. Whether it’s a good fit for your portfolio depends on your risk appetite and belief in DeFi’s future.
Conduct thorough research to supplement the information CryptoGuide GH provided in this extensive article. Assess market trends and do periodic checks of the cryptocurrency’s price.
With its bold vision and strong fundamentals, Hyperliquid could be a rocket to the moon—or a bumpy ride.
Time will tell.
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