Chainfeeds Briefing:
Since its launch near the beginning of this year, HyperEVM possesses all the elements to become a successful universal Layer 1 blockchain and serves as an ideal complement to the perpetual contract platform HyperCore. Unlike other emerging L1 blockchains, HyperEVM does not rely on large-scale incentive programs or disruptive applications to attract users and developers. It naturally connects liquidity and user base, allowing developers to focus on product development and innovation.
Article Source:
https://www.galaxy.com/insights/research/hyperliquids-l1-begins-to-find-its-footing
Article Author:
Lucas Tcheyan
Perspective:
Lucas Tcheyan: Since its launch in February 2025, HyperEVM, an EVM-compatible universal Layer 1 blockchain launched by Hyperliquid, is gradually revealing its potential. Although user activity is currently far lower than its flagship product HyperCore (a perpetual contract trading platform), HyperEVM has achieved steady growth in transaction volume, total value locked (TVL), and application development. This growth has not relied on common funding incentives or airdrop activities, but primarily benefited from continuous infrastructure improvement, DeFi ecosystem maturation, and market speculation about potential airdrops. Hyperliquid adopts a progressive deployment strategy to ensure HyperEVM's operation does not affect HyperCore's stability. Despite early challenges for developers with incomplete tools, over 175 projects have chosen to build applications on HyperEVM. Its native token HYPE is used for gas fees and employs a modified EIP-1559 mechanism for burning, currently having burned 0.006% of the total HYPE supply. As on-chain activities gradually increase, HyperEVM is transitioning from an early experimental platform to a core financial layer, especially after the CoreWriter update in July, which for the first time enabled smart contracts to directly write to HyperCore's state, opening doors for cross-chain interactions and more advanced DeFi construction. HyperEVM's architecture is independent but highly synergistic with HyperCore, sharing the HyperBFT consensus mechanism and validator set. While HyperCore focuses on on-chain perpetual contracts and order book matching, becoming a top derivatives trading platform, HyperEVM takes on the responsibility of unleashing DeFi composability. HyperEVM uses a "dual-block architecture", processing small blocks per second for daily transactions and large blocks per minute for complex contract operations, balancing low latency and high throughput. Although its transaction fees are slightly higher than Ethereum L2, it can still support processing 200,000 orders per second. The CoreWriter module launched in July is a significant update, first allowing HyperEVM contracts to directly write to HyperCore state, including order placement, transfers, and staking. This asynchronous design, while not supporting single-transaction confirmation, greatly expands the range of achievable use cases. Currently, many projects are building new functionalities around CoreWriter, covering automated staking, asset management, cross-chain transaction execution, and more, signaling that HyperEVM is no longer just a side vehicle but gradually transforming into a crucial driving layer of Hyperliquid's financial stack. So far, the HyperEVM ecosystem has attracted over 175 public projects, mostly concentrated in basic DeFi modules like lending, stablecoins, and AMM DEXs. HyperLend is the largest lending protocol with $487 million in TVL, supporting multiple collateral and liquidation modes, and has integrated with HyperCore's cross-chain liquidation mechanism. Felix and HypurrFi rank second and third, contributing their native stablecoins feUSD and USDXL, and plan to further integrate CoreWriter functionality to enhance inter-chain collaboration. Additionally, AMMs like KittenSwap and HyperSwap are preparing to introduce order book fusion routing to improve transaction execution efficiency. The asset cross-chain protocol Unit Protocol has already assisted in transferring over $100 million in BTC and tens of millions in ETH to HyperEVM. Beyond existing protocols, new projects like Kinetiq, Sentiment, Liminal, and Rysk will launch with CoreWriter support, covering staking, lending, arbitrage, options trading, and more. Hyperliquid founder Jeff Yan once stated that HyperEVM to finance is like AMM to trading, indicating it will serve as a core financial layer, collaborating with HyperCore to build a vertically integrated financial system. As tools improve and projects are implemented, HyperEVM is expected to become a new on-chain arena with high-value density without requiring substantial incentives.
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