The HYPE token, introduced by the decentralized finance protocol Hyperliquid, has experienced an impressive surge of over 200% since its token generation event (TGE) on November 29. Currently, it is trading at $12.30, reflecting an increase of more than 36% in the last 24 hours. This rapid price escalation has elevated its fully diluted valuation (FDV) beyond $12 billion. With 333 million tokens in circulation out of a total supply of 1 billion, HYPE boasts a market capitalization of approximately $4 billion.
Hyperliquid’s Successful Launch
Hyperliquid, a pioneering decentralized finance (DeFi) protocol, made its debut on November 29, with HYPE initially priced at $3.90. The airdrop event was valued at $1.2 billion, distributing 31% of the total supply to the community. Since its launch, the token price has steadily increased, reaching an all-time high of $12.95 on December 4.
Why Investors Are Excited About HYPE
The excitement surrounding HYPE extends beyond its soaring price. Several factors contribute to the positive sentiment. Notably, the token generation event was executed smoothly, free from technical issues or distribution complaints. Importantly, there was no allocation for venture capitalists (VCs) or private investors, promoting a fairer distribution. The distribution also indicates good decentralization, with only a few large wallets holding significant portions of the supply.
The Time-Weighted Average Price (TWAP) feature is another attraction for users. It divides large orders into smaller ones executed at 30-second intervals, ensuring a maximum slippage of 3%. The robust demand for HYPE is evident from the significant gap between buy and sell orders via TWAP. Additionally, HYPE is deflationary, with about 26% of its supply being burned annually.
HYPE’s Growing Investor Interest
Investor interest in HYPE is clearly on the rise, demonstrated by its 24-hour trading volume exceeding $279 million. Hyperliquid has quickly established itself as a leader in both trading volume and total value locked (TVL) among decentralized perpetual swap platforms. Since its launch, Hyperliquid’s valuation has surged by over 514%, with its current market capitalization surpassing $4.2 billion. This rapid growth has piqued interest in identifying other projects that might replicate Hyperliquid’s success.
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Other Projects with Noteworthy Airdrop Strategies
Several other projects are gaining attention with their innovative airdrop strategies:
Arkham: Recently transitioning from blockchain services to a perpetual exchange, Arkham mirrors Hyperliquid’s strategy by rewarding users who trade and refer new participants.
Grass: Grass distributed 10% of its total token supply in its first airdrop on Solana. Participants earned tokens by contributing computing power and engaging with the network. In its second phase, Grass plans to distribute 17% of the total supply to the community.
LayerZero: LayerZero allocated 15% of its ZRO token supply for future incentivized activities, with an additional 23.8% reserved for users and developers. Analysts suggest engaging with LayerZero’s bridge services and participating in its Discord roles program to earn more tokens.
Wormhole: Known for its multi-chain interoperability, Wormhole’s early airdrop strategy has been successful. While only 6% of its W token supply is reserved for community rewards, its focus on high-value transactions shows potential for growth as adoption increases.
The Future of Decentralized Platforms
Anmol Singh, co-founder of Zeta Markets, highlighted the high trading volumes surrounding HYPE’s launch as an indicator of the growing importance of decentralized exchanges (DEXs) and perpetual platforms. Singh predicts that by 2025, most token launches will occur on DEXs, making them the preferred choice over centralized exchanges (CEXs).
FAQs
Why has HYPE token price surged so much?
The HYPE token’s price surged over 200% post-launch due to a successful token generation event, positive sentiment, and robust demand.
With a strong start and promising growth, the future looks bright for Hyperliquid and its rapidly rising token.
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