Today we continue to look at new projects; new projects emerge endlessly in the bull market. Over the weekend, many friends asked me about this HYPE project, so this issue discusses it. The current popularity is still relatively high because an airdrop occurred on November 29 (reportedly up to 20,000 USD per address), and the amount of the airdrop is also very high, not a VC play. Currently, the highest token price on its own exchange has reached 9 USD. Based on this price, the initial circulating market value has exceeded 3 billion, and the overall FDV has reached 9 billion. What kind of amazing project has piqued my curiosity? Let's explore this project together today.
Introduction
Hyperliquid is a high-performance L1 optimized from the ground up. Its vision is to create an entirely on-chain open finance system where user-built applications can interact with high-performance native components without affecting the end-user experience.
Hyperliquid L1's performance is sufficient to run an entire permissionless financial application ecosystem—every order, cancellation, trade, and settlement is transparently conducted on-chain, with block delays of less than 1 second. The chain currently supports 100,000 orders per second.
Hyperliquid L1 uses a custom consensus algorithm called HyperBFT, which is inspired by Hotstuff (HotStuff is a modular and efficient Byzantine Fault Tolerance (BFT) consensus protocol, particularly suitable for blockchain networks and distributed systems. It aims to optimize performance and simplify design, providing high flexibility and security). The algorithm and network stack have been optimized from scratch to support L1.
The flagship native application is a fully on-chain order book perpetual contract exchange (supporting up to 50X leverage) Hyperliquid DEX. Further developments include native token standards, spot trading, permissionless liquidity, etc.
Features
1. Latency
The consensus currently uses an optimized consensus algorithm called HyperBFT, which is optimized for end-to-end latency. End-to-end latency refers to the duration from sending a request to receiving a commitment response.
For orders placed by clients from the same geographic location, the median end-to-end latency is 0.2 seconds, with the 99th percentile at 0.9 seconds. This performance allows users to transplant automated strategies from other cryptocurrency venues with minimal changes and provides retail users with immediate feedback through the UI.
2. Throughput
The mainnet currently supports about 100,000 orders/second. The current bottleneck is execution. Once execution keeps up, the consensus algorithm and network stack can scale to millions of orders per second. When necessary, we plan to further optimize the execution logic.
3. Dual Virtual Machine Architecture:
Hyperliquid combines HyperVM and HyperEVM, offering higher performance while being compatible with Ethereum applications. This architecture ensures asset bridging and composability across ecosystems.
Ecosystem Development:
The project currently has over 230,000 active users and has created a daily trading volume record of over 3.3 billion USD, with an average block time of 0.2 seconds. TPS reaches up to 200,000.
Token Economy
The total token supply is 1 billion, with an initial circulation of 31%, only the airdrop portion, and then the team locks for one year, with no part for any VC.
The specific allocation rules are as follows:
Community Airdrop: 310 million tokens were allocated, accounting for 31% of the total supply, rewarding users who earned points on the platform.
Future Community Rewards: 388 million tokens (38.8%) have been reserved to incentivize continued community participation and ecosystem development.
Core Contributors: 238 million tokens (23.8%) were allocated to reward core contributors. This portion of tokens will be locked for one year after release.
Operational Needs: 60 million tokens (6%) were allocated, managed by the Hyper Foundation, for the platform's operating expenses.
Currently, the TVL is still rising rapidly, nearly increasing by 1.3 billion USD this year, especially in the past month, where it has almost doubled. Of course, after this round of airdrops ends, I estimate it will drop somewhat, but it still depends on its subsequent performance.
Key Reminders
Currently, Sesame has opened a pre-market trading that is very problematic. First, Hype is originally an exchange. If you want to buy Hype, you can purchase it on the official website's exchange. Second, the price on Gate is incorrect; you must pay close attention to the prompt above. It states that the points are based on 100 billion issued, but Hype itself is 1 billion, meaning it has been expanded 100 times on Gate. Why do this?
It simply makes people feel that this coin is very cheap, and the introduction page only states that the market value is only 80 million USD. I was almost tricked, because we have mentioned many times before that the DEX's TVL and market value are roughly around 1:1. So according to the current 1.3 billion TVL, isn't that seriously underestimated? I was still preparing to buy, and then I logged into the official platform and saw it was 9 USD, only to find that Sesame was wrong. Based on 9 USD, the FDV reaches 9 billion, the same as UNI, which is definitely incorrect. A newly launched DEX should not have the same market value as UNI; there must be a huge bubble.
In summary, currently, the HYPE project from a technical perspective does not show significant innovation compared to a derivative DEX based on order books and currently mainstream DEXs; its main selling point is speed. However, it is currently based on Ethereum, so settlements are naturally a bit slower, but still acceptable. From the user and TVL perspective, the current coin price is absolutely overvalued; a reasonable price should be around 1 USD.
