Blockchain network Hyperliquid has recorded over $1 billion in net inflow of USDC stablecoin since its airdrop on November 29. According to data from SpotOnChain, the number of USDC within the network deposit bridge doubled over the last 17 days, increasing to $2.09 billion USDC.
The massive inflow of stablecoins into the L1 network, which is also a decentralized perpetual swap trading platform with its own L1 network, highlights the massive trading activity since its token generation event (TGE).
Hyperliquid cumulative USDC flows (Source: SpotOnChain)
Unlike many decentralized exchanges, Hyperliquid has distinguished itself with its order book solution, which is similar to centralized exchanges. This makes it possible to eliminate the risk of high slippage, a major issue that has plagued DEXs, which usually rely on automated market makers and liquidity providers.
Interestingly, Hyperliquid’s significant growth in three weeks has made it one of the largest decentralized perpetual trading platforms in terms of total value locked (TVL) and trading volume.
According to Defillama, the network TVL increased by more than 1000% in the past month to make it second-highest among all DEX platforms with $2.78 billion, only behind Uniswap, which has $6.8 billion and ahead of Solana-based Raydium. The network recorded the third-highest TVL changes behind Bitcoin and Ethereum in the last seven days.
Beyond its TVL, trading activity on the platform has also been explosive. Hyperliquid recently surpassed $10 billion in 24-hour trading volume and reached an all-time high open interest of $4.3 billion. However, it has come under some criticism from some quarters, with many noting that its activity is not verifiable as it does not have an API.
HYPE token reaches new ATH after 700% gains in 30 days
Meanwhile, the high volume of activity on Hyperliquid has caused its HYPE token to soar in value significantly. The token, worth around $4 at the time of the airdrop, has now been up more than 700% and trading at $26.12.
Its current value follows a brief period at an all-time high of $27.25 when Bitcoin climbed to $106,000. Despite the retracement, HYPE is still up 16% in the last 24 hours and looks poised to see further growth.
Unsurprisingly, whales within the crypto ecosystem have made significant profits trading within the Hyperliquid ecosystem.
According to Spotonchain, one wallet attributed to popular crypto trader GCR has made over $12.58 million in profit on Hyperliquid after a 397% gain. The wallet used 3.16 million USDC to acquire HYPE, HFUN, and PURR while allocating 53.7% of the funds to HYPE tokens.
However, trading on the network has been mixed. Another whale, 0x9b4, lost $4.11 million, a 39% loss trading tokens on the platform. The trader’s portfolio is currently worth only $282,000, with 91.1% allocation to HFUN, 6.7% to FLASK, and 2.2% to FATCAT.
What is driving Hyperliquid growth?
The massive trading activity on the Hyperliquid network and its token performance are mostly due to the positive sentiment surrounding the project. Compared to the most recent airdrops, Hyperliquid’s decision to allocate 31% of the token supply to users for the first airdrop has been viewed as very generous and a sign of its community-first approach.
This has translated into increased mindshare for the project within the crypto community, with many stakeholders promoting it. The HYPE token rally has also allowed many users to make millions off the airdrops, boosting its profile and value.
Meanwhile, the likelihood of future airdrops also attracts more users to the network. Hyperliquid tokenomics shows that 38.88% of its supply has been set aside for future emissions, leading many to believe that there will be other airdrops and that activity on the network has increased significantly. This contrasts with most crypto projects, where airdrop events usually lead to declining activity and prices.
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