Written by: A Ray's New World
With high FDV projects like Magic Eden and Movement launching one after another on international top exchanges, the rhythm of listings has resonated similarly to April this year. Often at this time, the market will generate redundancy on the supply side, leading to a divergence where the price of Bitcoin continues to rise while altcoins on CEX remain sluggish. These altcoins that have been listed on CEX are expected to welcome the 'bear market' as Bitcoin approaches $100,000.
Image from the internet
In this awkward moment where BTC and altcoins are side-eyeing each other, the Hyperliquid ecosystem has a beautiful landscape. Even yesterday, the newly launched memecoin HYENA has already surged to the extent that it crashed the Hypurr Fun Bot.
The Hyper ecosystem is seeing a broad rise, with major funds accelerating their entry.
Just today, HYPE broke through $28. HYPE has launched a main upward wave with almost no pullbacks since opening at $6 on November 29, smoothly surpassing Layer1s like Fantom and Aptos, reaching about $9 billion in circulating market cap and $27 billion in FDV, directly entering the top 30 of crypto asset market capitalization.
Image source: CoinGecko
The epic airdrop of HYPE marks the biggest turning point in the Hyperliquid ecosystem. Before the TGE, while Hyperliquid had a strong wealth creation effect, discussions in the Chinese-speaking community about the Hyper ecosystem were rare, with most still simply categorizing Hyperliquid as a PerpDEX like dYdX. However, after the airdrop was completed, the market was attracted by the rise of HYPE 'standalone coin', and Hyperliquid had already transitioned from PerpDEX to a high-performance trading public chain in the public eye. This is also why the valuation ceiling of Hyperliquid continues to rise (shifting from DEX valuation logic to public chain valuation logic).
In addition, blue-chip assets and newly listed tokens on Hyperliquid have also attracted the attention of major market funds.
Blue-chip assets continue to reach new highs.
Recently, although Hyperliquid has generally welcomed a spring of liquidity, the assets that have increased above the average are still some leading assets in the Hyper ecosystem, besides HYPE, including PURR, HFUN, and JEFF.
PURR
PURR is a memecoin airdropped by Hyperliquid to early users; it has now become the strongest meme of PURR consensus, with no rivals. PURR is also regarded as Hyperliquid's official mascot. Since December 11, it has increased by over 200%, reaching a market cap of 370 million.
The K-line chart of PURR
HFUN
Hypurr Fun is the fastest Telegram trading bot on Hyperliquid, while HFUN is the platform token of Hypurr Fun. After being discovered for its value on December 5, it has reached new highs, increasing by 1500% in 10 days.
The K-line chart of HFUN
At the same time, according to on-chain tracking by blogger Arthur, GCR purchased $HYPE at $10, $PURR at $0.30, $JEFF at $19, and $HFUN at $39.
Stunning listing effects
Unlike the opaque listing rules of CEX, Hyperliquid adopts a Dutch auction system. The starting price of a Dutch auction starts higher than the market expectation and then continues to decrease until the first person accepts that price.
Firstly, it will continually increase the auction prices for Ticker. For instance, after SOLV sold for $128,000, the next auction will start at a price higher than $128,000. If it starts lower than the previous auction price, it will likely be immediately accepted, thus incentivizing the starting auction price to keep rising.
Historical listing auctions on Hyperliquid.
Indeed, following the $128,000 sale of SOLV, subsequent auctions saw FARM at $180,000, and recently MON sold for an astronomical $480,000. The auction prices and the market value trajectory of HYPE both quadrupled in 10 days, reaching new highs.
Secondly, such an auction mechanism will filter out higher quality projects. The project party will enhance the listing effect significantly to recover the cost of listing.
The latest auction tokens like SOVRN and MON are noteworthy because these tokens were not launched on Hyperliquid but had pools on other chains. After the auction for SOVRN was completed on December 14 at 10 AM, its price increased over 100%. Coincidentally, MON also saw a 50% increase after its coin auction was completed on December 15 at 2 PM.
Both SOVRN and MON saw significant price increases after their auctions.
With the market's purchasing power bustling in, how should we take our seat at the table?
What gameplay should you understand to stay at the table?
Dealing Cards: Preparation before entering.
First, before the troops move, provisions must be prepared. If you are a newbie encountering this for the first time, you need to register an account and familiarize yourself with Hyperliquid's trading mechanisms.
Register an account
After entering the Hyperliquid official website, click on the 'connect' link to link your wallet. Then click on 'Portfolio' and select 'Deposit' to switch your wallet to the Arbitrum chain, then deposit USDT/USDC from your wallet into Hyperliquid. Note that you need to leave a small amount of ETH for GAS.
Conduct trading
After registering and depositing, you can start trading. The main trading assets on Hyperliquid are divided into 'Perp' (contracts) and 'Spot' (spot trading), with spot trading further selectable as 'Strict' or 'All'. The Strict type of spot trades mainly consists of blue-chip assets within the Hyperliquid ecosystem, such as PURR, JEFF, HFUN, CATBAL, etc. It is worth noting that GCR also purchased these core assets.
GCR address for purchasing Hyper ecosystem blue-chip assets
If you are sufficiently Degen, you can participate in Hyperliquid's HLP. HLP allows all users to participate by providing liquidity for all assets listed on the exchange by depositing USDC. Participants can earn a portion of trading fee revenue and profit through market-making strategies in the HLP market.
View tokens
In addition to the already soaring blue-chip assets, a significant source of wealth creation in Hyperliquid comes from its listing effect. Readers can learn about the detailed auction process through Hyperliquid's official auction website and follow the latest listing auction dynamics via the Hyperliquid blockchain explorer introduced later.
Bidding: How to efficiently participate.
Secondly, to do a good job, one must first sharpen their tools. Just as playing Sol meme cannot do without GMGN, unlocking various gameplay in the Hyperliquid ecosystem also requires a series of tools.
Investment Research Analysis
Before participating in trading within the Hyperliquid ecosystem, efficient investment research and analysis is essential.
(1) ASXN: ASXN is a data dashboard for the Hyperliquid ecosystem, similar to Dune in Hyperliquid. You can query relevant data through ASXN, such as recently auctioned tokens, Ticker and price, trading volume ratios, and other information. After opening the website, you will see the collection of Hyperliquid data dashboards in the lower left corner.
Meanwhile, ASXN's official Twitter account @asxn_r will continuously update some key data regarding the Hyperliquid ecosystem. If you don’t want to struggle to dig up information directly using ASXN, you can also follow their official Twitter. Personally, I believe ASXN's UI is well-designed and provides a smooth and comfortable experience.
Image source: ASXN
(2) Velo: Velo is also a data visualization dashboard website but can be used to query other data, not specifically for Hyperliquid-related data. I often use it to compare the differences between Hyperliquid and CEX data.
Image source: Velo
(3) Hyperdash: Hyperdash is a trading analysis dashboard. Users can track addresses in Hyperliquid that have a higher win rate or ROI based on Hyperdash, essentially identifying smart money on Hyperliquid.
Image source: Hyperdash
(4) HypurrScan: HypurrScan is the Layer1 block explorer on Hyperliquid, allowing users to query all first-hand data related to Hyperliquid through this explorer.
Image source: Hypurrscan
Trading Bot
After completing the investment research and analysis, we can start charging ahead!
(1) Hypurr Fun Bot: Hypurr Fun Bot is specifically designed for trading in the Hyperliquid ecosystem. Within the Hyperliquid ecosystem, it is also divided into internal and external markets. The tokens we can trade directly on Hyperliquid are external, and external token listings need to be competed for through auctions. Many tokens that are not directly listed on Hyperliquid can be traded through internal markets. Users just need to recharge USDC from their Hyper accounts into the Bot, and its usage is similar to other pump series bots.
However, it should be noted that the auction prices on Hyperliquid's external market are ridiculously high, with the most recent auction reaching as high as $480,000. The difficulty of subsequent tokens being listed on the internal market will sharply increase, and risks must be considered when participating in the internal market.
Image source: Hypurr Fun Bot
(2) Hypercopy: Hypercopy is a follow trading robot within Hyperliquid. Users can input the addresses of Top Traders to choose which smart money to follow.
Image source: Hypercopy
(3) PVP BOT: PVP BOT is a Telegram trading bot within the Hyper ecosystem. After entering the Telegram group, it will synchronize member openings in real-time, allowing for pvp battles within the group.
Information Dynamics
Hyperliquid News: If you want to keep up with the latest Hyperliquid information, such as the latest auction prices, timely listing information, and quickly track ecosystem trends, following @HyperliquidNews is your best choice. This Twitter channel will promptly push any information related to the Hyperliquid ecosystem, which can be understood as Hyper's Blockbeats!
Following Cards: Subsequent gameplay in the Hyper ecosystem.
Finally, based on the present, we look to the future. The spot prices on Hyperliquid have already soared, with the core basket of Hyper system tokens such as HYPE reaching a market cap of $8 billion, PURR nearly $400 million, and HFUN reaching $250 million. If you feel that even according to Layer1 valuations, the space for profit and loss upon entering now is relatively limited, we can opt not to eat the fish head but the fish body.
The opportunities in Hyperliquid's fish body also lie in the upcoming launch of 'HyperEVM'. Hyperliquid's technical architecture is very unique, consisting of two chains: Hyperliquid L1 and HyperEVM (EVM). These two chains exist as a unified state under the same consensus mechanism (HyperBFT) but operate in separate execution environments. Hyperliquid L1 is a permissioned chain specifically for high-performance trading, such as perpetual contracts and spot order books. All high TPS native components can be achieved through L1. HyperEVM is an EVM-compatible chain that supports common Ethereum tools and allows developers to deploy smart contracts. The smart contracts deployed on HyperEVM can directly access perpetual contracts and spot trading on L1, with a specific launch date yet to be determined.
Hyperliquid Technical Architecture Diagram, image from the internet.
When HyperEVM goes live, Hyperliquid will no longer follow the current PerpDEX logic but will become an 'application + trading platform'. At that time, various EVM applications and ecosystems will flourish, and new financial gameplay emerging around perp and HLP will inevitably continue to appear. Below are some of the ecosystem projects I have summarized:
HyperSwap: The native DEX of Hyperliquid EVM, which is now live on the testnet.
Kinetiq: An LSD project that provides liquidity staking support for Hyperliquid.
HyperLendX: This project is the first lending platform on Hyperliquid and is now live on the testnet.
Keiko Finance: A permissionless lending protocol with dynamic interest rates and liquidation ratios.
HyBridge: A cross-chain application of HyperLiquid that can quickly and seamlessly bridge EVM and SOL networks. (Note that this project name does not include 'per')
Hyperliquid Names: A domain name project within the Hyperliquid ecosystem.
Felix Protocol: A stablecoin project within the Hyperliquid ecosystem that allows borrowing of feUSD against HYPE and mainstream assets.
Vegas GamebleFi: The first GamebleFi project that combines utility and gaming through a fairness proof system.
Due to the length of the article, readers can refer to the more detailed tools and panorama of the Hyperliquid ecosystem organized below for more in-depth research.
Panorama of the Hyperliquid ecosystem, image from the internet.
Amidst FOMO, how can we manage risk effectively?
Although the Hyperliquid ecosystem is developing vigorously and is quickly catching up to 'SUI surpassing SOL', there are still some potential risks. For instance, centralization risk, often referred to as 'machine room chains'. According to ASXN data, Hyperliquid currently has 76 validators, but only 23 are active, and the sorter is also quite centralized; however, this issue will gradually improve in the future. Meanwhile, HYPE has low circulation and high FDV. Currently, HYPE's circulating market cap has reached about $9 billion, while FDV has soared to about $27 billion.
Nevertheless, instead of picking up the tokens that are flooding onto the market, it is better to give yourself an opportunity to embrace the new ecosystem.
