Hyperliquid celebrated a significant milestone on Friday with the launch of its HYPE token, marking the culmination of its highly anticipated token generation event (TGE).
As the native token of Hyperliquid’s Layer 1 blockchain, HYPE saw an explosive debut, surging 125% within hours of going live.
Hyperliquid TGE Sparks Community Reaction
The TGE, announced in a Friday post on X (formerly Twitter), allocated 31% of the total HYPE supply as part of its initial distribution. Users noted that this was a “perfect airdrop,” citing no downtime, delays, lags, or insider selling.
This sparked a wave of excitement and analysis within the crypto community. Abhi, a prominent crypto analyst, praised Hyperliquid’s airdrop strategy.
“Dear Projects! Study Hyperliquid & understand how airdrop should be done. Literally allocated 31% HYPE TGE airdrop on 1st day of launch. It launched at a $4 billion FDV & $1.5 billion market cap. I believe this will be another successful protocol,” the crypto maxi remarked.
Hyperliquid’s novel approach to the TGE reflects its commitment to decentralization and organic ecosystem growth. The token generation event marks the latest chapter in Hyperliquid’s rapid ascent in decentralized finance (DeFi).
The launch paves the way for significant developments. Among them is a move toward greater decentralization through community governance and a planned expansion of its validator network.
“Congrats to everyone on Hyperliquid right now. Good to know you can believe in something. $22 per point. It looks like the team has cooked already, with only 30% airdropped,” a DeFi explorer noted.
Hyperliquid currently operates with four internal validators. The introduction of HYPE will enable the integration of external validators to enhance operational security and decentralization. Aylo, a researcher at Alpha Please, emphasized the importance of product-market fit (PMF) in the project’s success.
“PMF + airdrop actually works. You just have to identify the protocols/apps that people will continue to use regardless of the airdrop because the product is actually good/solves a problem. Many examples of this cycle: Jito, Kamino, HyperLiquid, Grass, etc,” Aylo noted.
Some experts, however, urged caution. Airdrop researcher FIP Crypto advised investors to be cautious of projects that depend entirely on airdrops to attract users.
“It is an immediate red flag for me,” the researcher expressed.
Notably, HYPE has not held any funding rounds, with its first token unlocking event scheduled for November 2025.
Hyperliquid Plans Ethereum Compatibility, Growth
Nevertheless, Hyperliquid is positioned for sustained growth. At launch, it boasted a market cap of nearly $1.5 billion and plans for Ethereum compatibility. Other plans include community-driven governance and decentralized validators.
The success of its TGE and HYPE’s value surge reflects strong community support and growing interest in its ecosystem. Amidst the TGE, one of the biggest Hyperliquid whales was reportedly granted 508,985 HYPE in the genesis airdrop.
HYPE Price Performance. Source: Hyperliquid DEXElsewhere, Hyperliquid is preparing for the rollout of HyperEVM. The feature will bring Ethereum Virtual Machine (EVM) compatibility to its blockchain. This update will allow Ethereum developers to deploy decentralized applications (dApps) directly on Hyperliquid’s platform. It will leverage the DEX’s gasless trading and rapid transaction speeds.
“Hyperliquid is transitioning from being a specialized appchain to a general-purpose Layer 1, with over 35 teams ready to build on the new HyperEVM ecosystem,” said MONK, a researcher at Messari.
Notable projects, including Felix Protocol and HyperLend, are in the line up to join the ecosystem. They will offer stablecoins, lending platforms, and other DeFi solutions.
As Hyperliquid transitions into its next phase, the launch of HyperEVM and its push toward decentralization will likely solidify its place as a leader in DeFi innovation.
“For perps, the golden standard is a CEX so if Hyperliquid offers better/similar UX and more transparency while getting people off KYC’d CEXes, that’s a net positive congrats if you made money off this today, use it to get more of your friends off CEXes!” Helius Labs CEO Mert Helius quipped.
