In a stunning move up the DeFi ranks, Hyperliquid has just surpassed dYdX in terms of total value locked (TVL). With $530 million in TVL, this Arbitrum-based decentralized exchange (DEX) is now sitting comfortably in second place among derivatives platforms, right behind GMX, which boasts $542 million. How did this happen, and what’s driving traders to flock to Hyperliquid? Let’s dive into the details.
Hyperliquid’s Meteoric Rise: From 8th to 2nd in Six Weeks!
Hyperliquid has enjoyed an incredible 2024. Just six weeks ago, it was ranked 8th in TVL, but today it’s a powerhouse in the DeFi world. This rapid ascent has left many wondering: What’s the secret sauce behind Hyperliquid’s success?
The New Points Program: A Game-Changer?
The catalyst for Hyperliquid’s recent surge seems to be its new points program, which kicked off on May 29. The program, designed to reward user activity, distributes 700,000 points weekly over four months. Additionally, there are 2 million points per week for activity between May 1 and May 28. This has undeniably attracted a swarm of traders to the platform.
However, not everyone is thrilled. The community’s reaction has been mixed, with some users unhappy about the delay in the token launch and airdrop. Despite this, the influx of traders speaks volumes about the program’s effectiveness.
Hyperliquid vs. The Competition: Who’s Winning?
Here’s a quick look at the top 5 derivatives platforms by TVL:
1. GMX: $542 million
2. Hyperliquid: $530 million
3. Jupiter (Solana-based): $415 million
4. Drift: $365 million
It’s clear that Hyperliquid is a serious contender, now outpacing even the formidable dYdX.
Points Distribution: Early Users Rejoice!
Hyperliquid has been generous with its points distribution, aiming to reward its earliest users. So far, roughly 51 million points have been distributed over four periods. The focus is not just on perpetual DEX features but also on promoting the platform as a Layer 1 solution. This strategic move suggests that Hyperliquid is setting the stage for a bigger play in the DeFi space.
What’s Next for Hyperliquid? Key Goals Before Token Launch
While some users are disappointed about the delayed token generation event (TGE), the Hyperliquid team has a clear plan. Pseudonymous leader Chameleon Jeff outlined three main goals before launching their token:
1. Deploy the native EVM.
2. Seamlessly integrate the EVM with existing native components.
3. Fully decentralize the network (details still under wraps).
Steven, a founding member of Yunt Capital, supports this strategy, believing it will ultimately result in a higher token valuation. “By first proving to the market that HL should be valued like an L1, the token will be priced higher on TGE. Isn’t that what everyone wants at the end of the day?” he remarked.
PURR Token Soars: A Sign of Things to Come?
Interestingly, PURR, Hyperliquid’s first spot token, has surged by 23% following the points program announcement. This could be a hint of the platform’s potential and the benefits awaiting early adopters.
The Big Question: Should You Get Involved?
Hyperliquid’s recent achievements and ambitious plans make it a platform worth watching. If you’re considering diving into the DeFi world, this could be an opportune moment to explore what Hyperliquid has to offer. Keep an eye on their progress towards their key goals and be ready for the potential token launch.
In the fast-paced world of DeFi, staying informed and making timely decisions can be the difference between riding the wave of success or missing out. Hyperliquid’s rise is a testament to the dynamic and ever-evolving nature of decentralized finance. Will Hyperliquid continue its ascent? Only time will tell, but the signs are certainly promising.
