Hyperliquid’s HYPE TGE Sets New Standards for DeFi with 31% Allocation
November 29, 2024
Hyperliquid celebrated a major milestone on Friday with the launch of its HYPE token, marking the culmination of its long-awaited token generation event (TGE).
As the native token of Hyperliquid’s layer 1 blockchain, HYPE has seen an incredible start, surging 125% within hours of starting trading.
Hyperliquid TGE Launch Sparks Community Reaction
TGE was announced in a post on Friday on X (formerly Twitter), where 31% of the total HYPE supply was allocated as part of the initial distribution. Users noted that this was a “perfect airdrop,” noting that there were no downtime, delays, slowdowns, or insider selling.
This sparked a wave of excitement and analysis within the crypto community. Abe, a prominent crypto analyst, praised Hyperliquid’s airdrop strategy.
“Dear projects! Study Hyperliquid & understand how airdrops should be done. 31% of HYPE TGE was allocated on the first day of launch. Launched with $4B & $1.5B FDV market cap. I believe this will be another successful protocol,” commented Maximalist for cryptocurrencies.
Hyperliquid’s new approach to TGE reflects its commitment to decentralization and organic ecosystem growth. The token generation event represents the latest chapter in Hyperliquid’s rapid rise in decentralized finance (DeFi).
The launch paves the way for major developments, including a move towards greater decentralization through community governance and the planned expansion of its validator network.
“Congrats to everyone at Hyperliquid now. It’s good to know you can believe in something. $22 per point. Looks like the team is already set, with only 30% distributed,” the DeFi explorer noted.
Hyperliquid currently operates with four internal auditors. The introduction of HYPE will enable the integration of external auditors to enhance operational security and decentralization. AlphaBlaze researcher Aiello emphasized the importance of product-market fit (PMF) for the success of the project.
“PMF+Airdrop already works. You just have to identify protocols/applications that people will continue to use regardless of Airdrop because the product is already good/solves a problem. There are many examples of this cycle: Gito, Camino, Hyperliquid, Grass, etc,” Aiello noted.
The success of TGE and the rise in HYPE’s value reflects strong community support and growing interest in its ecosystem. Amidst TGE, one of the largest Hyperliquid whales was reported to have awarded 508,985 HYPE in a founding airdrop.
Elsewhere, Hyperliquid is preparing to launch HyperEVM. This feature will bring Ethereum Virtual Machine (EVM) compatibility to its blockchain. This update will allow Ethereum developers to deploy decentralized applications (dApps) directly to the Hyperliquid platform. They will benefit from gas-free trading and fast transaction speeds on DEXs.
“Hyperliquid is transitioning from a niche application chain to a multi-purpose layer 1, with over 35 teams ready to build on the new HyperEVM ecosystem,” said MONK, a researcher at Messari.
Notable projects, including Felix Protocol and HyperLend, are lined up to join the ecosystem. They will offer stablecoins, lending platforms, and other DeFi solutions.
As Hyperliquid moves into its next phase, the launch of HyperEVM and its push towards decentralization will likely cement its position as a leader in DeFi innovation.
“For perpetual contracts, the gold standard is CEX so if Hyperliquid provides a better/similar user experience and greater transparency while getting people off CEXes that require KYC, that’s a net positive. Congrats if you made money from this today, use it to get more of your friends off CEXes!” Helius Labs CEO Mert Helius joked.
