Chainfeeds Summary:

In Q4 2024, Syncracy established large positions in HYPE. In Q1 2025, as the Hyperliquid story accelerated beyond expectations, our conviction strengthened, and Syncracy further increased its positions.

Source:

https://mp.weixin.qq.com/s/ANT1jqzrf81Ak9KrmEqFRA

Author:

Ryan Watkins

Perspective:

Ryan Watkins: The rise of Hyperliquid was rooted in its product-first philosophy, where the team did not get bogged down in the ideological purity of decentralization, but prioritized providing users with the best on-chain trading experience. This approach can be understood as progressive decentralization, where the team gradually cedes control after finding the product-market fit, rather than sacrificing user experience for complete decentralization from the start. Hyperliquid has built deep community trust by directly engaging with traders, rapidly responding to their needs, and optimizing platform performance. For example, the team can complete feature updates and bug fixes within hours, enabling an agile development model that has led to the creation of key product features, such as order cancellation priority for market makers to provide tighter spreads, and the Hyperliquid Vault for quickly onboarding new trading pairs with liquidity. This responsive mechanism ensures that Hyperliquid's central limit order book (CLOB) can process transactions at 100,000 TPS with sub-second finality - an order of magnitude improvement over industry peers. Hyperliquid's long-term strategic goal is to build the Universal Exchange, a unified global ledger that integrates liquidity across multiple asset classes. Dominant traditional finance exchanges, such as the CME, NYSE, and Nasdaq, as well as centralized crypto exchanges like Binance, have entrenched their market positions due to liquidity network effects, economies of scale, and regulatory barriers. However, these exchanges still suffer from fragmentation, unable to efficiently integrate trading of diverse asset classes on a single platform. Hyperliquid has built a vertically integrated trading system on its proprietary high-performance blockchain, combining spot and derivatives market liquidity, and offering the inherent advantages of on-chain trading, such as auditability, composability, and self-custody. Its ultimate goal is not just to become the dominant on-chain derivatives market, but to serve as the core infrastructure for the entire financial market, breaking down the silos of traditional exchanges by seamlessly integrating cross-asset trading, and propelling the crypto economy towards broader market adoption. The deep integration between the Hyperliquid exchange and HyperEVM gives its ecosystem a unique competitive edge. Unlike other smart contract platforms that primarily rely on external developers to build their ecosystems, Hyperliquid has created a user traffic funnel through its self-developed exchange, using it as a launchpad to attract developers and asset issuers. For example, its efficient order book and liquidity pools provide a fertile ground for building on-chain financial infrastructure, from structured products and social trading to privacy-preserving transactions. Furthermore, Hyperliquid has deployed multiple levers to drive ecosystem growth, such as its Genesis Incentive Fund (39% of total supply) to provide long-term support for developers, and a buyback program for its HYPE token to enhance demand and facilitate internal capital flows within the ecosystem.