As projects with high FDV like Magic Eden and Movement have successively launched on international first-tier exchanges, the rhythm of listings in the market has shown a resonance similar to April of this year. Often at this time, the market generates supply-side redundancies, with altcoins becoming scarce, leading to a phenomenon where Bitcoin and Ethereum reach new highs while altcoins on CEX languish, leading to the anticipated 'bear market' of Bitcoin hitting 100,000 USD.
Image from the internet
At this awkward moment when BTC and altcoins are eyeing each other, the Hyperliquid ecosystem is thriving. Even the newly launched memecoin HYENA has surged to a level that caused the Hypurr Fun Bot to crash.
Hyper ecosystem is experiencing a general surge, with major funds accelerating their entry.
Today, HYPE broke through 28 USD. Since opening at 6 USD on November 29, HYPE has almost had no retracement and has smoothly surpassed Layer 1s like Fantom and Aptos, reaching a circulating market value of about 9 billion USD and an FDV of 27 billion USD, directly entering the top 30 of crypto asset market values.
Image Source: CoinGecko
The epic airdrop of HYPE is the biggest turning point for the Hyperliquid ecosystem. Before the TGE, although Hyperliquid had a strong wealth creation effect, there was little discussion about the Hyper ecosystem in the Chinese community, and most people simply categorized Hyperliquid as a PerpDEX like dYdX; however, after the airdrop was completed, the market was attracted by the rise of HYPE as a 'single coin', and Hyperliquid had already achieved a transformation 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 coins on Hyperliquid have also attracted the attention of top market funds.
Blue chip assets are hitting new highs repeatedly
Recently, although Hyperliquid has overall welcomed a spring of liquidity, the assets in the Hyper ecosystem that have outperformed are still some leading assets, apart from HYPE, there are PURR, HFUN, and JEFF among others.
PURR
PURR is a memecoin airdropped by Hyperliquid to early users, which has now become the strongest meme of PURR consensus, bar none. PURR is also seen as the official mascot of Hyperliquid. Since December 11, its increase has exceeded 200%, reaching a market value of 370 million.
HFUN's K-line chart
HFUN
Hypurr Fun is the fastest Telegram trading bot on Hyperliquid, and HFUN is the platform token of Hypurr Fun. After being discovered for its value on December 5, it has since hit new highs with a 1500% increase in 10 days.
HFUN's K-line chart
At the same time, according to on-chain tracking by blogger Arthur, GCR purchased $HYPE at a price of 10 USD, $PURR at 0.30 USD, $JEFF at 19 USD, and $HFUN at 39 USD.
Stunning Listing Effect
Unlike the inscrutable listing rules of CEX, Hyperliquid adopts a Dutch auction rule. The starting price of the Dutch auction will begin at a price above market expectations, then continuously decrease and complete the transaction upon the first acceptance of that price. The project side competes for listing rights on Hyperliquid through the auction format. This Dutch auction listing mechanism has many benefits.
Firstly, it will continuously raise the auction price of Ticker. For example, after SOLV was sold for 128,000 USD, the next auction will start at a price higher than 128,000 USD. If it starts below the last price, it is likely to be completed immediately, thereby incentivizing the starting price to continuously rise.
History of Token Auctions on Hyperliquid
This is indeed the case. Following the transaction price of 128,000 USD for SOLV, there was a subsequent auction price of 180,000 USD for FARM, and recently, MON was sold for a staggering price of 480,000 USD. The auction prices and the market value trend of HYPE are similar, quadrupling in 10 days, reaching new heights.
Secondly, such an auction mechanism will filter out higher quality projects. To recover the cost of listing, the listing effect will be significantly enhanced.
Recent auctioned tokens like SOVRN and MON are worth noting that these tokens did not debut on Hyperliquid, but already had pools on other chains. After SOVRN's auction ended at 10:00 on December 14, its increase exceeded 100%. Coincidentally, MON also saw a 50% increase after its auction on December 15 at 14:00.
SOVRN and MON both saw significant increases after the auction
The market's purchasing power is bustling in entry, so how should we get to the table?
To stay at the table, what gameplay should you understand?
Dealing: Preparations Before Entry
First, before the troops move, the logistics must be in place. If you are a newcomer, you need to register an account and familiarize yourself with Hyperliquid's trading mechanism.
Register Account
After entering the Hyperliquid official website, click 'connect' to link your wallet. Then click 'Portfolio' and 'Deposit', switching your wallet to the Arbitrum chain, and deposit USDT/USDC from your wallet into Hyperliquid. Note that you need to leave a small amount of ETH for GAS.
Conduct Transactions
You can start trading once you register and deposit. The main trading assets on Hyperliquid are divided into 'Perp' (contracts) and 'Spot' (spot). Among them, spot can be further divided into 'Strict' and 'All'. Strict type spots are mostly blue chip assets in the Hyperliquid ecosystem, such as PURR, JEFF, HFUN, CATBAL, etc. Notably, GCR has also purchased these core assets.
GCR Address Purchase Status of Hyper Ecosystem Blue Chip Assets
If you are sufficiently Degen, you can also participate in Hyperliquid's HLP. HLP allows all users to participate by depositing USDC to provide liquidity for all assets listed on the exchange. Participants can earn a portion of trading fee income and profit through market-making strategies in the HLP market.
View Tokens
Aside from the already surging blue chip assets, a significant wealth creation myth of Hyperliquid comes from its listing effect. Readers can learn about the detailed auction process through Hyperliquid's official auction website and keep up with the latest listing auction dynamics through the Hyperliquid blockchain explorer introduced later.
Bidding: How to Efficiently Participate
Secondly, to do well in one's work, one must first sharpen one's tools. Just as playing Sol meme cannot do without GMGN, unlocking various gameplay in the Hyperliquid ecosystem also requires assistance from a series of tools.
Investment Research and Analysis
Before participating in trading in the Hyperliquid ecosystem, efficient investment research and analysis are essential.
(1) ASXN: ASXN is a data dashboard for the Hyperliquid ecosystem, similar to Dune in Hyperliquid. You can use ASXN to query related data, such as recently auctioned tokens Ticker and prices, transaction volume ratios, and other information. After opening the website, the Hyperliquid data dashboard collection will appear in the lower left corner.
At the same time, ASXN's official Twitter account @asxn_r will continuously update key data related to the Hyperliquid ecosystem. If you don't want to directly use ASXN to painstakingly dig for information, you can follow their official Twitter. Personally, I think ASXN's UI is very well designed, and it is smooth and comfortable to use.
Image Source: ASXN
(2) Velo: Velo is also a data visualization dashboard website, but it can be used to query other data and is not a vertical data site specifically for Hyperliquid. I often use it to compare various data between Hyperliquid and CEX.
Image Source: Velo
(3) Hyperdash: Hyperdash is a trading analysis dashboard. Users can track trading addresses with high win rates or yields in Hyperliquid through Hyperdash, which represent smart money on Hyperliquid.
Image Source: Hyperdash
(4) HypurrScan: HypurrScan is the Layer1 blockchain explorer on Hyperliquid, allowing users to query all firsthand data related to Hyperliquid through this explorer.
Image Source: Hypurrscan
Trading Bot
After conducting thorough investment research and analysis, we can begin to charge ahead!
(1) Hypurr Fun Bot: Hypurr Fun Bot is specifically designed for trading in the Hyperliquid ecosystem. Within the Hyperliquid ecosystem, there are also internal and external markets. The tokens that we can directly trade on Hyperliquid are external market tokens, and external tokens require auctions to compete for listing rights. Many tokens 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 the usage method is similar to the pump series of bots.
However, it should be noted that the current auction prices for external markets on Hyperliquid are outrageously high; the most recent auction reached as high as 480,000 USD. The difficulty of launching internal market tokens will increase sharply, and risks need to be considered when entering the internal market.
Image Source: Hypurr Fun Bot
(2) Hypercopy: Hypercopy is a copy trading bot on Hyperliquid, allowing users to input the addresses of Top Traders to choose specific smart money to copy.
Image Source: Hypercopy
(3) PVP BOT: PVP BOT is a Telegram trading bot in the Hyper ecosystem, which will synchronize member trades in real time after entering the Telegram group, 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 updates on listing information, and rapid tracking of ecosystem trends, following @HyperliquidNews is your best choice. This Twitter channel will timely push any information related to the Hyperliquid ecosystem, which can be understood as Hyper's Blockbeats!
Follow-up Play: Hyper Ecosystem's Subsequent Gameplay
Lastly, based on the present, look to the future. The spot assets on Hyperliquid have already skyrocketed, with the most core Hyper ecosystem assets like HYPE reaching a market value of 8 billion, PURR nearly reaching 400 million, and HFUN also reaching 250 million. If you feel that even according to Layer 1 valuations, the risk-reward ratio for entering now will be relatively limited, we can opt not to go for the fish head but rather the fish body.
The opportunity for Hyperliquid lies 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 independent execution environments. Hyperliquid L1 is a permissioned chain designed for high-performance trading, such as perpetual contracts and spot order books. All high TPS native components can be implemented via L1. HyperEVM is an EVM-compatible chain that supports common Ethereum tools and allows developers to deploy smart contracts. Smart contracts deployed on HyperEVM can directly access perpetual contracts and spots on L1, but the specific launch date is yet to be determined.
Hyperliquid Technical Architecture Diagram, image from the internet.
After HyperEVM goes live, Hyperliquid will no longer follow the current PerpDEX logic, but rather become an 'application + trading platform'. At that time, various EVM applications and ecosystems will flourish, and new financial gameplay arising around perp and HLP will undoubtedly continue to emerge. Here are some ecosystem projects summarized by the author:
HyperSwap: It is Hyperliquid's EVM-native DEX, which has now been launched 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 it has now gone 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: Hyperliquid ecosystem domain name project.
Felix Protocol: A stablecoin project in the Hyperliquid ecosystem that allows borrowing feUSD using HYPE and mainstream assets as collateral.
Vegas GamebleFi: The first GamebleFi project that combines utility and gameplay using fairness proof systems.
Due to the limited length of the article, readers can refer to the more detailed and organized overview of Hyperliquid tools and ecosystem for deeper research.
Panorama of the Hyperliquid Ecosystem, image from the internet
Amidst FOMO, how to effectively manage risk?
Although the development of the Hyperliquid ecosystem is flourishing and rapidly advancing towards 'catching up SUI and surpassing SOL', there are some potential risks. For instance, there is a centralization risk, commonly referred to as 'machine room chain'. According to ASXN data, there are currently 76 validators in Hyperliquid, but only 23 are active, and the sorters are relatively centralized. However, this issue will gradually improve in the future. At the same time, HYPE has low circulation and high FDV. Currently, HYPE's circulating market value has reached about 9 billion USD, while FDV has reached about 27 billion USD.
Nevertheless, instead of chasing after the tokens that are rapidly launched, it is better to give oneself an opportunity to embrace the new ecosystem.
*This article does not involve any investment advice
Related Materials:
(60 billion USD market value behind, Hyperliquid attempts to reconstruct the listing pattern of the crypto industry)
(EVM is not yet online, how to evaluate Hyperliquid's future?)
