Efe Crypto Kid

I believe that this is only the beginning for Hyperliquid as a product, and its respective token, $HYPE
What makes Hyperliquid special?
Hyperliquid operates as a real business generating substantial revenue. In 2025, the platform recorded roughly $850 million in revenue, with 99% of that directed toward buying and burning HYPE tokens. This creates a powerful flywheel: more usage drives more burns, reducing supply and supporting price appreciation.
Rapid Rise to Top 10
In less than 18 months since its token launch in November 2024, HYPE has climbed into the top 10 cryptocurrencies by market cap. This rapid ascent stands in stark contrast to the broader crypto market, which faced average major declines over the past 8 months (with $BTC down 42% and $ETH down 57% from their October 2025 peaks). Despite these significant headwinds, HYPE delivered an inspiringly strong performance with a 164% price increase since the start of 2025 while its market capitalization actually shrunk by 24%. This reflects clear market recognition of Hyperliquid’s genuine revenue generation, battle-tested infrastructure, and dominant position in decentralized perpetuals trading.
CoinMarketCap ranking showing HYPE in the top 10 cryptocurrencies (Source: CoinMarketCap via KuCoin News)
In its first 10 trading days, the Bitwise HYPE ETF ($BHYP) and related HYPE products absorbed 1.04% of Hyperliquid’s total market capitalization in net inflows and trading activity. This marked the strongest debut of any spot crypto ETF on record excluding Bitcoin and outperformed the Bitwise Ethereum ETF’s 0.41% and Bitwise Solana ETF’s 0.31% absorption rates in their first 10 days. Notably, this impressive performance occurred during a broader crypto bear market, with Bitcoin and Ethereum down significantly from their all-time highs, in contrast to the bull market conditions when the Ethereum and Solana ETFs launched.
Hyperliquid ETF cumulative flows showing strong early institutional interest (Source: Bitget News)
The more traders use Hyperliquid, the more fees are generated, leading to greater token burns and, theoretically, increased price upside for holders.
Why Choose Hyperliquid for Trading?
Centralized exchanges have frequently encountered major challenges, such as liquidation cascades and user interface failures, due to their reliance on centralized order books. Hyperliquid, by contrast, processed half of all liquidations seamlessly on 10 October, with every liquidation verified transparently on chain so that nobody lost more money than they should have and no one saw unexpected zero balances in their wallets.
Additional benefits include:
- No custodial risk: Users maintain control without entrusting assets to a central party.
- Token utility: Holding HYPE provides discounts on trading fees.
- Privacy: The only information you share with the exchange is your wallet address.
I see Hyperliquid as one of the first examples of a cryptocurrency with a sustainable, revenue-generating business model.
Hyperliquid vs dYdX and Uniswap: Why It Wins
dYdX and Uniswap are two of the most established decentralized exchanges. Hyperliquid stands apart due to its purpose-built Layer-1 blockchain called HyperCore, which is optimized for high-speed orderbook trading. HyperCore runs a custom consensus mechanism that allows the entire orderbook and matching engine to operate fully on-chain. Nodes on the network validate and execute orders and liquidations directly, with every action recorded and verifiable by anyone.
This architecture enables up to 200,000 transactions per second with sub-10 millisecond latency. At peak capacity, the system can theoretically handle hundreds of thousands of trades simultaneously while maintaining full transparency. In contrast, dYdX runs on its own Cosmos-based Layer 1 chain and processes around 2,000 transactions per second. Uniswap, while highly successful for spot trading, relies on an automated market maker model that can result in higher slippage for larger trades. Hyperliquid’s on-chain orderbook and verified liquidation system delivered clear advantages over both platforms.
Hyperliquid also differentiates itself through its token economics. The majority of platform revenue is directed toward buying and burning HYPE tokens, creating direct value for holders. Combined with trading fee discounts for token holders and zero custodial risk, Hyperliquid offers a more scalable and aligned model than either dYdX or Uniswap.
Long-Term Price Potential
If Hyperliquid scales to the trading volumes of Tier-1 exchanges and successfully launches spot trading, its fee revenue would grow substantially. Reaching a market capitalization similar to Robinhood’s current level of roughly $70 billion would already imply a token price well above $300 based on current circulating supply. The token burning mechanism could allow it to soar much further than $300 if volume growth sustains.
Regulatory Developments
The environment is becoming more favorable. With new leadership at the SEC and recent CFTC regulations that enabled perpetual futures trading in the U.S. for the first time last week, DeFi is gaining clearer pathways forward. As one market observer noted on X:
“The CFTC just opened the door for American traders to access perps legally for the first time. This is huge for DeFi.”
I expect Hyperliquid’s offerings to eventually become available to American customers, which would drive substantially more business to the platform from both retail and high-volume trading desks.
Important Caveats
While the outlook for Hyperliquid is compelling, several risks should be considered. A significant portion of the total token supply remains subject to vesting and unlock schedules. At launch, a large share of tokens allocated to the team, early investors, and the foundation were subject to cliffs and linear vesting, with many tranches unlocking monthly over 24 to 36 months following a one-year cliff. As of May 2026, meaningful unlocks are still scheduled through the remainder of 2026 and into 2027, which could create periodic selling pressure if not absorbed by growing demand.
The project’s success also depends heavily on sustaining high trading volumes to support the burn mechanism. Competition in decentralized perpetuals remains intense, and regulatory uncertainty around derivatives trading persists in many regions. Like many early Layer-1 networks, Hyperliquid carries some centralization risk in its current validator set and governance structure. These factors warrant careful evaluation alongside the project’s strengths.
Bottom Line
I do not believe the upside for HYPE has finished yet for the long term. However, I'm not buying in aggressively just yet, due to the bearish divergence currently taking place on HYPEUSDT's 4H timeframe.
From CryptoKid on X, displaying a bearish RSI divergence on HYPE's 4-hourly price chart.
The combination of strong fundamentals, proven infrastructure, supportive regulation, standout ETF performance, rapid rise to top-10 status, and a superior competitive position versus dYdX and Uniswap positions it well for continued growth.