The native token of Hyperliquid’s Layer 1 blockchain, HYPE, experienced a sensational debut, witnessing a remarkable surge of 125% just hours after its launch. This explosive growth has captured the attention of the crypto community, establishing HYPE as a noteworthy entity in the digital currency landscape.
The Perfect Airdrop!
The successful airdrop of HYPE has been hailed as the ‘perfect airdrop’ by users and has set a new benchmark for future projects. The event was seamless, with no downtime, delays, lags, or insider trading incidents reported. This flawless execution created a buzz of excitement and analysis among crypto enthusiasts.
Beneficiaries of Hyperliquid’s airdrop took to X to share their experiences and substantial gains. One fortunate user from the decentralized derivatives exchange reported astonishing profits exceeding $300,000 from their airdropped tokens. This impressive price action propelled the fully diluted valuation to approximately $4.2 billion. Currently, over 333 million tokens are in circulation from a total supply of 1 billion, with a market capitalization around $1.4 billion.
Demand Outpaces Supply
The total supply of HYPE tokens is capped at 1 billion. Post-token generation, 31% (or 310 million) of fully unlocked tokens were distributed to eligible community users through the airdrop, offering 5 tokens for each point earned by eligible participants.
While airdropped tokens typically face immediate sell pressure from airdrop hunters seeking to maximize value, HYPE defied this trend. Demand for HYPE appears to have outstripped supply, indicating strong upward momentum. Notably, Hyperliquid distributed no tokens to private investors, centralized exchanges, or market makers. A significant 31% of tokens are earmarked for community airdrops, 24% for core contributors, 39% for future emissions and community rewards, and 6% for the Hyper Foundation.
The token’s launch sparked significant market activity, with one of the largest Hyperliquid whales receiving 508,985 HYPE in the airdrop event. Trading volume surpassed an impressive $250 million over the past 24 hours, showcasing robust demand. This launch sets the stage for substantial developments, including a shift towards greater decentralization through community governance and an expansion of its validator network.
Researcher Praises
The introduction of HYPE facilitates the integration of external validators, enhancing both operational security and decentralization. Aylo, a researcher at Alpha Please, underscored the significance of product-market fit (PMF) in the project’s success. He remarked, “PMF + airdrop actually works. You just have to identify the protocols/apps that people will continue to use regardless of the airdrop because the product is actually good/solves a problem. Many examples of this cycle: Jito, Kamino, HyperLiquid, Grass, etc.”
Expert Urges To Exercise Caution
Despite the enthusiasm, some experts advise caution. Airdrop researcher FIP Crypto warned investors to be wary of projects solely reliant on airdrops for user acquisition. He stated, “If the project keeps shilling their airdrop as the only way to onboard users, it’s an immediate red flag for me.” Notably, HYPE has not conducted any funding rounds, with its first token-unlock event scheduled for November 2025.
Hyperliquid’s Future Plans
The token generation event and HYPE’s impressive surge reflect strong community support and growing interest in its ecosystem. Hyperliquid is gearing up to launch its HyperEVM, which will introduce Ethereum Virtual Machine (EVM) compatibility to its blockchain. This advancement will empower Ethereum developers to deploy decentralized applications (dApps) directly on Hyperliquid’s platform, benefiting from the DEX’s gasless trading and swift transaction speeds.
As Hyperliquid embarks on its next phase, the launch of HyperEVM and its commitment to decentralization are poised to solidify its status as a pioneer in DeFi innovation.
