On December 4, the price of HYPE, the token of the decentralized trading platform Hyperliquid, surpassed $12. Over five days since its Token Generation Event (TGE), the asset has tripled in value.

HYPE serves multiple roles within the Hyperliquid ecosystem:

It is used for staking under the HyperBFT consensus mechanism.
It acts as a transaction fee within the HyperEVM execution environment.
The token is traded in a pair with USDC on Hyperliquid’s ecosystem platforms.

According to the team, the protocol boasts a throughput of up to 200,000 TPS.

Market Performance

At the time of writing, HYPE’s daily growth slowed to 34.7%. With a market capitalization of $1.55 billion, it ranks 46th among cryptocurrencies. Its Fully Diluted Value (FDV) has reached $12 billion.

DeFi Llama reports that Hyperliquid has claimed the top spot in TVL among decentralized perpetual swap platforms.

Expert Insights

Anmol Singh, co-founder of Zeta Markets, attributed Hyperliquid’s success to the increasing preference for DEX platforms. Speaking to The Block, Singh highlighted the shift away from centralized exchanges (CEX) due to transparency and community alignment concerns.

“By 2025, we will likely see the majority of token launches happening on DEX, making them the obvious choice over CEX,” he predicted.

Context

On December 4, BNB hit a new all-time high following the announcement of PancakeSwap Springboard, a platform for creating meme coins.
In November, Pump.fun generated a record $93 million in commissions (+208% MoM), helping Solana lead in DEX trading volume.