Hyperliquid: The evolution from "on-chain transaction revolution" to "financial super aggregator"

1. Anti-consensus breakthrough: Using "experience first" to tear open the battlefield of exchanges

In the Crypto Winter of 2024, Hyperliquid cut 60% of the perpetual contract market with an on-chain order book performance of 100,000 TPS, and processed more than $2 billion in transactions per day. Behind this number is the team's subversive rebellion against "decentralized fundamentalism". The core proposition anchored by co-founder Jeff Yan (former quantitative expert at Hudson River Trading Company) after the FTX crash was: "What users need is not pure decentralization, but a trading experience that is "as smooth as CEX and as safe as DEX"."

The team spent two years verifying this hypothesis: through the hybrid architecture of "centralized engine + on-chain settlement" (mainnet in 2023), sub-second confirmation was achieved; an "hourly response" mechanism was established on Discord, and the "order cancellation priority" function was launched within 48 hours, narrowing the market maker spread by 30%. This closed loop of "agile development-user verification-fast iteration" allowed Hyperliquid to accumulate 50,000 DAUs before the token was issued, with an NPS of 78 (industry average 45).

Key data: When 31% of HYPE tokens were airdropped in Q4 2024, 72% of the user holding addresses were real traders, and the selling pressure was only 1/3 of that of similar projects - this is the victory of "product PMF first, token economy later".

2. Everything Exchange: Lego-style reconstruction of on-chain liquidity

The "liquidity island" dilemma of traditional exchanges (CME futures, NYSE stocks, and Binance spot separation) has been completely broken on the Hyperchain blockchain. Its vertically integrated "spot + derivatives" single order book design allows market makers to increase capital efficiency by 40% - the same USDC can provide liquidity for BTC spot and perpetual contracts at the same time. Data from Q1 2025 showed that institutional traders accounted for 35%, and institutions such as Grayscale and Jane Street have tried large-scale transactions on the chain, with monthly settlement volume exceeding US$5 billion.

Technological breakthrough: The self-developed Hyperchain adopts "order book on-chain + off-chain matching optimization" to achieve a throughput of 100,000 TPS (Solana 50,000 TPS, Ethereum L2 about 2,000 TPS) while maintaining the auditability of the entire chain. Even in the extreme market of Bitcoin halving in October 2024, it still maintains 99.99% system availability, crushing Coinbase Pro's 17,000 TPS (it crashed 3 times due to overload during the same period).

Market ambition: The spot market has been online for three months, and its trading volume has entered the top ten global DEXs. The Syncracy model predicts that if the spot market accounts for 30% of perpetual contracts (standard for traditional exchanges), it will generate an additional nine-digit revenue in 2025. More radically, Hyperliquid is exploring the tokenization of US stocks (such as TSLA tokens) and the chaining of gold ETFs, aiming at the $500 billion traditional asset tokenization market.

3. HyperEVM Ecosystem: Transition from “Traffic Entrance” to “Value Black Hole”

The deep binding of Hyperliquid and HyperEVM creates a super synergy of "exchange × public chain": 200,000 daily traders (Q1 2025) become the natural flow pool of the ecosystem, and the chain copy trading platform HyperFollow has exceeded 40,000 DAU in March, far exceeding similar applications of Base. 39% of the HYPE incentive pool (about 9 billion US dollars) is released in a dual track of "development milestone + user growth", attracting more than 200 projects to settle in, including market-making agreements for the transformation of traditional quantitative institutions.

Eco-innovation cases:

• Collateral Lego: Users can use LP Tokens to pledge loans and use positions as margin for derivatives, increasing capital efficiency by 200% (similar to the integration of Aave+Pendle+Deribit);
• On-chain structured products: Based on the Hyperliquid vault, the "Bear Market Protection Option" linked to US stocks was issued, attracting 12,000 users within 24 hours;
• Privacy dark pool: Integrates Tornado Cash technology to achieve anonymous order books, with institutional traders accounting for over 60%.

Token economic flywheel: 20% of transaction fees are used for HYPE repurchase (12 million tokens will be destroyed in Q1 2025), 80% of ecological protocols choose HYPE for pledge, and some projects promise to allocate 10% of their income to HYPE - this three-dimensional capture of "transaction-development-reserve" is reshaping the valuation logic of crypto assets.

4. Hyper-financialization: The “on-chain entrance” to the trillion-dollar market

Syncracy's valuation model shows that if Hyperliquid occupies 60% of the on-chain derivatives share (currently reached) + 15% of the spot market (2025 target), and the ecological protocol share is added, the total transaction fee will reach 4.5 billion US dollars in 2026, surpassing Ethereum (3.2 billion in 2024) to become the first on-chain revenue. But this is just the starting point:

• Regulatory breakthrough: After obtaining the Cayman VFSC license, it is negotiating with the US OCC for the qualification of a "special purpose custodian bank" to pave the way for tokenized securities;
• Cross-chain strategy: Launch a cross-chain bridge (supporting Cosmos and Polygon zkEVM) in Q3 2025, aiming to become a "unified settlement layer for multi-chain assets";
• Institutional penetration: co-build a market-making network with Jane Street, test the "on-chain clearing house" model, and plan to introduce traditional funds such as pension funds in 2026. **Risk warning: The validator cluster is concentrated in Tokyo (16 servers), the code is closed source (external contributions are only 12%), and the cross-chain bridge security (refer to the Axie Ronin incident) is still the sword of Damocles hanging on the road to growth.

Conclusion: When Web3 meets "Financial Internet"

Hyperliquid's disruptiveness lies in its use of "Internet product thinking" to rewrite the rules of financial infrastructure: first grab users with the ultimate experience (speed, cost, reliability), and then build barriers through technology iteration (on-chain, cross-asset) and ecological incentives (token economy). This "gradual evolution" not only avoids the mistakes of dYdX's radical on-chain, but is also more synergistic than Binance's "chain-coin separation" model.

At the turning point of the crypto industry from "faith-driven" to "commercial implementation", Hyperliquid is proving that true decentralization should not be a self-imposed limitation of ideology, but a natural result of user value realization . When its on-chain ledger begins to carry global asset flows, and when the HyperEVM ecosystem grows trillion-dollar applications, this revolution that began with trading experience will eventually become the underlying operating system of the "super-financialization" era.

(Data as of March 2025, some scenarios are based on the Syncracy valuation model and Hyperliquid's public roadmap)

Core ideas extraction:

• Anti-consensus path: experience first > decentralized purity, reconstructing financial products with agile development of the Internet;
• Technical moat: 100,000 TPS on-chain order book, single-chain integration of spot/derivatives/tokenized assets;
• Ecological flywheel: exchange traffic × HyperEVM innovation × HYPE token economy, forming a closed loop of "user-developer-value";
• Market ambition: From a crypto trading disruptor to an “on-chain super aggregator” of global financial assets.