Why Buy Hyperliquid (HYPE)?
Purchasing HYPE may be wise if you believe in decentralisation and are looking for an alternative to centralised exchanges (CEX) and venture capital (VC) dominated protocols. Hyperliquid has revolutionised the decentralised finance (DeFi) landscape by demonstrating that an exchange can be developed, grow, and thrive without private funding while ensuring transparent distribution to its community.
The HYPE token is more than just a speculative asset; it serves multiple purposes within the Hyperliquid ecosystem. It can be used to pay transaction fees on Hyperliquid’s Layer 1, participate actively in governance, and be locked in for staking. Its distribution model has set a new standard in the industry: there are no exclusive presales, no preferential allocations to institutional investors, and only airdrops to the community, along with strategic reinvestments.
In addition to its essential role in the protocol, HYPE has experienced remarkable growth in value. Initially priced around $1, it swiftly climbed to $28 and peaked at $35, transforming early adopters into significant players in the DeFi space.
What is HYPE?
HYPE is the native token of the Hyperliquid ecosystem, a decentralised exchange built on a proprietary Layer 1 blockchain. In contrast to many other protocols that allocate large amounts of tokens to venture capitalists, Hyperliquid has allocated 76.2% of the total supply to users and developers. This approach enhances the platform’s sustainability and decentralisation over the long term.
On November 29, 2024, Hyperliquid launched the Genesis Distribution, an airdrop that distributed 310 million HYPE tokens (31% of the total supply) to approximately 94,000 eligible users. The average allocation value ranged between $45,000 and $50,000, making it one of the most lucrative airdrops in DeFi.
Unlike other projects, Hyperliquid’s model rewards genuine platform users, thus avoiding significant sell-offs by private investors. The distribution model for HYPE tokens is as follows:
- 38.88% for future issues and community rewards
- 31% distributed through Genesis Distribution
- 23.8% reserved for network developers
- 6% for the Hyperliquid Foundation
- 0.3% for community grants
HYPE’s performance and its future
In addition to its revolutionary tokenomics, HYPE has demonstrated impressive performance, with trading volume reaching $15 billion in just 24 hours. This remarkable figure accounted for 20% of Bybit’s volume and 8% of Binance’s volume in the futures market.
The protocol’s Total Value Locked (TVL) continues to grow, highlighting Hyperliquid’s widespread adoption and the strength of its ecosystem. Thanks to its distribution model and strong community involvement, many analysts consider HYPE a potential flagship asset in decentralised finance (DeFi).
Investing in HYPE today means backing one of the most innovative projects in decentralised finance. The platform boasts a solid user base, a high-performing exchange, and a genuinely decentralised governance structure. The buyback-and-burn model can potentially reduce HYPE’s circulating supply over time, which could increase its value.
HYPE is a token to watch if you believe in the vision of a decentralised exchange that operates without venture capital and is governed by the community.
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