Hyperliquid, a decentralized exchange (DEX) renowned for its groundbreaking method of on-chain trading, is seeing a newfound wave of activity—largely the work of “whales” making big moves in its native token, $HYPE.
Recent action has involved hefty deposits being funneled into the Hyperliquid platform, prompting guesswork not just about what the money might be for but also about where Hyperliquid as a whole might be headed. Pundits have also begun to speculate on the “underpriced” nature of $HYPE given what seem to be some imminent, transformative developments in the Hyperliquid ecosystem.
Big Whale Moves: $HYPE Surge and Market Interest
In recent days, whales have been actively buying the $HYPE token, expressing strong confidence in Hyperliquid. Address 0xfD7A…Ea8d deposited $3 million in $USDC into Hyperliquid just hours ago and used it to purchase 130,422 HYPE tokens, worth about $2.96 million. This large buy was dwarfed by an even larger purchase made by address 0x3369….ADdF over the past 25 hours. This address has now deposited $6.95 million into Hyperliquid and used most of it to purchase 186,964 $HYPE tokens worth about $4.24 million, leaving some question about what platform these large players are using to take the other side of these trades.
The activity of whales around $HYPE highlights a more widely held belief that the platform is on the cusp of some major breakthroughs that would greatly increase its market cap and the real-world applicability of its various components. It is becoming increasingly evident that, as Hyperliquid innovates, the market is just now starting to comprehend the full breadth of the platform’s and its native token’s potential.
Catalysts Driving Hyperliquid’s Growth
Three main events are set to unlock fresh opportunities for Hyperliquid and its $HYPE token. These catalysts are clear signals to the market that not only should we expect the trading volume of Hyperliquid to increase, but also that the liquidity and user base of the platform should grow alongside the trading volume. Hyperliquid seems to be in a very good place, with a very real chance of becoming widely adopted in its next phase of growth. Here are the three catalysts that have our attention.
1. Expanding the Spot Market
At present, the spot market of the Hyperliquid platform centers on its native token, $HYPE, and offers few, if any, other significant cryptocurrencies. The team at Hyperliquid, however, is in the process of bringing to market a range of major cryptocurrency assets, including Bitcoin ($BTC), Ethereum ($ETH), and Solana ($SOL), for spot trading on the platform. This development and several others represent an overall push for Hyperliquid to become a more competitive DeFi platform, and one that is more reminiscent of its centralized counterparts.
In January, Hyperliquid’s spot trading volumes accounted for only 3.3% of its perpetual contract (perps) volumes, with the vast majority of Hyperliquid’s spot trading tied to $HYPE. The addition of leading crypto assets to the platform—such as $BTC, $ETH, and $SOL—could ramp up trading volumes by 15% to 30%, and for $BTC in particular, this would unfold somewhat as a natural experiment. Hyperliquid’s setup as a highly efficient on-chain central limit order book (CLOB) could lend it an edge in capturing Bitcoin market share from on-chain trading options presently serving the Bitcoin market that are either inefficient, syscall-chained (in the case of state execution from EVM), or fragmented across different services.
2. The Introduction of the HyperEVM
The next game-changing step for Hyperliquid is the launch of HyperEVM, a composable application layer. This will let developers build dApps right on the Hyperliquid platform. Hyperliquid is integrating the EVM into its infrastructure, making it a leading on-chain CLOB that also has the added benefit of a full application layer.
The HyperEVM allows developers to make dApps that hook into Hyperliquid’s native order book and execute with its smart liquidity. These dApps would not use Hyperliquid’s current illiquid order book; instead, they’d use an order book at Hyperliquid in a new manner. Here are two ways in which dApps at Hyperliquid would have a hyper way of using the order book.
3. The Assistance Fund: A Key Player in $HYPE’s Future
One of the most crucial determinants of $HYPE’s value is the Assistance Fund (AF), which has been amassing a substantial portion of the circulating $HYPE supply. Over the last two weeks, the AF has been buying daily to the tune of $1.7 million worth of $HYPE, and if this trend holds, it could mean that there’s $620 million in buying pressure on an annualized basis. The AF’s purchases are key to maintaining the price floor of $HYPE and ensuring that its value continues to appreciate as the platform further develops.
Hyperliquid’s community-aligned value redistribution model guarantees that the AF is contributing in real-time to the platform’s growth, with 100% of the protocol’s revenue being directed into initiatives like the Assistance Fund (AF) and the Hyperliquid Liquidity Pool (HLP). As volumes increase, the way that AF and these further conjointly serve appears in the manner of a long-term support line for the native asset at the instance of the trading prices. Insofar as this effect serves, it also shines on the reputation of this platform.
Looking Ahead: Hyperliquid’s Path to Dominance
Hyperliquid and its $HYPE token have an extremely bright future, with a number of catalysts likely to drive adoption and volume their way. They plan to expand the spot market, introduce the HyperEVM, and leverage the buying power of the Assistance Fund, among other initiatives. All these steps are likely to push them way up in the DeFi ranks and down toward the trades of those enjoying an immersive experience in the Hyperliquid space.
Both investors and traders have begun to notice Hyperliquid’s recent whale activity and the ongoing innovations of the platform, presenting what could be a unique opportunity to get in early on one of the most exciting developments in the DeFi space for 2025.
If the currents that have already carried Hyperliquid’s user base to new heights continue to do so, here are three reasons why the platform might soon find itself attracting a wide swath of on-chain trading users in 2025.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.