The virtual asset market as a whole has entered a period of adjustment. While Bitcoin and major altcoins weakened simultaneously, the performance of the decentralized derivatives exchange 'Hyperliquid' presented a stark contrast. While major altcoins recorded double-digit declines, the HYPE token surged 28%, capturing the market's attention.
This is not a simple "flash in the pan." Hyperliquid's cumulative fee revenue recently surpassed $1 billion, making it a powerful alternative to centralized exchanges. Market analysts believe this is "the result of actual revenue and institutional funding." Let's analyze the four core reasons why Hyperliquid has been able to stand out even in a declining market.
① "Buy and burn"... a 'buyback and burn' model similar to shareholder returns.
Hyperliquid's most powerful weapon is its transparent and robust token economics. The platform uses 97% of its transaction fee revenue to directly purchase and burn HYPE tokens from the market.
Connection with the real economy: To date, approximately $1 billion worth of HYPE tokens have been permanently removed from the circulating market.
Scarcity value: A structure where the higher the trading volume, the lower the token supply. This creates an effect similar to the stock market's 'buyback and burn of treasury stock,' ensuring downside support for the token price and driving it up.
② "Gold and silver can also be traded 24 hours a day"...breaking down the boundaries between traditional finance and decentralized finance.
The recently implemented 'HIP-3' upgrade will evolve Hyperliquid from a simple cryptocurrency exchange into a comprehensive asset platform.
Gold and silver futures trading volumes have surpassed $1 billion daily, thanks to the ability to list perpetual futures based on physical assets without requiring permission. The infrastructure for 24/7 trading of stock indices and even individual stocks is rapidly absorbing traditional financial capital onto the blockchain.
③ The inflow of 'large funds'... Grayscale Paradigm has already bet on it.
It is also worth noting that it has shed its image as a speculative market dominated by individual investors and has become a 'landing point' for institutional funds.
Institutional Access: In February of this year, accessibility for institutional users was revolutionized through integration with Ripple Prime.
Inclusion in the portfolio: Global venture capital firm Paradigm currently holds $581 million worth of HYPE, and Grayscale's recent initiation of the process to launch a HYPE trust fund has further boosted market confidence.
④ DEX market share 73%... data proves a real battle.
Hyperliquid currently holds a dominant 73% share of the decentralized derivatives market, with daily trading volume exceeding $6 billion.
While ensuring the fast execution speeds and deep liquidity of centralized exchanges, traders seeking to escape regulatory risks and opacity are flocking to Hyperliquid. In a financial market driven by capital logic, traders have chosen Hyperliquid as the 'safest and most efficient infrastructure' for hosting their assets.
The new standard in the post-Bitcoin era
Industry insiders predict that "the era of simply driving up prices based on expectations is over," and that "only 'real utility' models, where actual protocol revenue is directly linked to token value, like the case of Hyperliquid, will become the mainstream in the future market."
Hyperliquid's 'fundamental strength,' which has been validated during market downturns, is attracting considerable attention, with many wondering whether it can become a new valuation benchmark for the cryptocurrency market in the future.
