DWF Ventures, the venture division of Web3 investor and market maker DWF Labs, has released an analysis breaking down Hyperliquid and its layer-1 network, HyperEVM. The review covers the growth of Hyperliquid’s perpetual exchange (PerpDEX) and its rapidly increasing market share against centralized exchanges (CEXs).
Hyperliquid's start
Hyperliquid started out as an Arbitrum-based PerpDEX before switching to HyperEVM and holding an airdrop to introduce the HYPE token. DWF Ventures claims that by choosing not to pursue early-stage venture capital funding, the platform was able to give community development and product development top priority.
As a result of this strategy, early users received 31% of the entire HYPE supply. Hyperliquid set new records in July, with $320 billion in perpetual trading volume and $87 million in revenue after switching to its own layer-1 chain. The network had the largest share of any single chain that month, accounting for 35% of all blockchain revenue. In relation to Bybit and OKX market share, it hit all-time highs reaching 6.1% against CEXes.
HYPE's tokenomics
The tokenomics of HYPE, which devotes 97% of all trading fees to buybacks, has also been thoughtfully covered in the analysis. The Hyperliquid Assistance Fund has bought almost $1.33 billion worth of the tokens to the open market. Proposals to create perpetual markets without centralized approval are among the governance developments.
DWF Ventures credited Hyperliquid's success to its product execution, community involvement and airdrop distribution strategy, which fueled its growth. According to the report, sustained market share growth may result in larger buyback volumes, which could eventually increase buying pressure on HYPE. Operating as a Wweb3 investor and market maker, DWF Labs trades on more than 60 cryptocurrency exchanges globally, engaging in both spot and derivatives trading.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team