Author: A Ray's New World, BlockBeats
With high FDV projects like Magic Eden and Movement continuously launching on top international exchanges, the pace of token listings in the market has shown a similar resonance to that of April this year. At times like this, the market often produces supply-side redundancy, with altcoins being in short supply, leading to a divergence where Bitcoin and Ethereum reach new highs while altcoins in CEX languish—the altcoins that have already launched on CEX are expected to welcome the 'bear market' of Bitcoin reaching $100,000.
Image sourced from the internet
At this embarrassing moment when BTC and altcoins are eyeing each other, the Hyperliquid ecosystem shines brightly. Even yesterday, the newly launched memecoin HYENA surged to a level that caused the Hypurr Fun Bot to crash.
The Hyper ecosystem is surging, with major funds accelerating their entry.
Just today, HYPE broke through $28. HYPE has been on a nearly uninterrupted upward trend since opening at $6 on November 29, smoothly surpassing Layer 1s such as Fantom and Aptos, reaching approximately $9 billion in circulating market cap and $27 billion in FDV, directly entering the top 30 in cryptocurrency market cap.
Image source: CoinGecko
The epic airdrop of HYPE is the biggest turning point for the Hyperliquid ecosystem. Before the TGE, although Hyperliquid also had a strong wealth creation effect, there was little discussion about the Hyper ecosystem in the Chinese community, with most people simply categorizing Hyperliquid as a PerpDEX like dYdX; however, after the airdrop was completed, the market was attracted by the rise of HYPE as a 'single currency', and Hyperliquid had already shifted from a PerpDEX to a high-performance trading public chain in the public eye. This is also the reason why the valuation ceiling for Hyperliquid keeps increasing (shifting from DEX valuation logic to public chain valuation logic).
In addition, blue-chip assets on Hyperliquid and new coins listed have also attracted the interest of major market funds.
Blue-chip assets are hitting new highs repeatedly.
Recently, although Hyperliquid as a whole has welcomed a spring of liquidity, the assets that have risen significantly above average are still some leading assets in the Hyper ecosystem, besides HYPE, including PURR, HFUN, and JEFF.
PURR
PURR is the memecoin airdropped by Hyperliquid to early users, and it has now become the strongest meme of PURR consensus, bar none. PURR is also regarded as the official mascot of Hyperliquid. Since December 11, it has increased by over 200%, reaching a market cap of $370 million.
K-line chart of PURR
HFUN
Hypurr Fun is the fastest trading bot on Hyperliquid, while HFUN is the platform token of Hypurr Fun. After being valued on December 5, it has reached new highs, with a 10-day increase of up to 1500%.
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.
Astonishing coin listing effects
Unlike the opaque listing rules of CEX, Hyperliquid adopts a Dutch auction rule. The starting price of a Dutch auction begins higher than the market expectation, then continuously decreases until it is accepted at the first price. The project party competes for the listing rights on Hyperliquid through auctions. This Dutch auction listing mechanism has many benefits.
Firstly, the auction price for Ticker will continuously increase. For example, after SOLV sold for $128,000, the next auction will start at a price higher than $128,000. If it starts below the previous price, it is likely to be sold immediately, incentivizing the starting price to keep rising.
History of token auctions on Hyperliquid
And indeed, following the $128,000 transaction of SOLV, there were subsequent auction prices of $180,000 for FARM, and recently MON sold for a staggering $480,000. The auction prices and the market cap trends of HYPE have both quadrupled in 10 days, reaching new highs.
Secondly, this auction mechanism screens for higher quality projects. The project party significantly enhances the listing effect to recover listing costs.
The latest auctioned tokens like SOVRN and MON are noteworthy as these tokens were not first launched on Hyperliquid, but have pools on other chains. SOVRN saw a surge of over 100% after completing its auction on December 14 at 10 AM. Coincidentally, MON also had a 50% increase after its coin auction on December 15 at 2 PM.
Both SOVRN and MON showed significant increases after the auction.
The purchasing power in the market is bustling, so how should we get to the table?
What gameplay should you understand to stay at the table?
Dealing: Preparation before entering the table
First, before the troops move, the supplies must be prepared. If you are a newcomer, you need to register an account and familiarize yourself with Hyperliquid's trading mechanism.
Register an 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 into Hyperliquid. Note that you need to leave a small amount of ETH for GAS.
Conduct trading
You can start trading after registering and depositing. The main trading assets on Hyperliquid are divided into 'Perp' (contracts) and 'Spot' (spot), with spot being further categorized into 'Strict' and 'All'. Strict type spots mostly consist of blue-chip assets within the Hyperliquid ecosystem, such as PURR, JEFF, HFUN, CATBAL, etc. It is also worth noting that GCR has purchased these core assets.
GCR address purchasing status of Hyper ecosystem blue-chip assets
If you are Degen enough, 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 share of trading fees and profits through market-making strategies in the HLP market.
View token
In addition to the already surging blue-chip assets, a significant wealth creation myth of Hyperliquid comes from its listing effect. Readers can understand the detailed auction process through Hyperliquid's official auction website and keep up with the latest listing auction dynamics via the Hyperliquid blockchain explorer introduced later.
Calling: How to participate efficiently
Secondly, to do a good job, one must first sharpen their tools. Just as playing Sol memes cannot be separated from GMGN, we also need a series of tools to unlock various gameplay in the Hyperliquid ecosystem.
Analysis and research
Before participating in trading in the Hyperliquid ecosystem, efficient research and analysis are essential.
(1) ASXN: ASXN is a data dashboard for the Hyperliquid ecosystem, similar to Dune in Hyperliquid. You can query related data such as recent auctioned token tickers and prices, trading volume ratios, etc., through ASXN. After opening the website, the data dashboard collection for Hyperliquid will appear in the lower left corner.
At the same time, the official Twitter account of ASXN @asxn_r will continuously update some key data related to the Hyperliquid ecosystem. If you do not want to use ASXN directly to dig for information, you can also follow their official Twitter. Personally, I believe ASXN's UI is very well done, providing a smooth and comfortable experience.
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 dedicated Hyperliquid-related data website. 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 trading addresses with higher win rates or return rates in Hyperliquid using Hyperdash, essentially tracking the smart money on Hyperliquid.
Image source: Hyperdash
(4) HypurrScan: HypurrScan is a Layer1 blockchain explorer on Hyperliquid, allowing users to query all first-hand data related to Hyperliquid.
Trading Bot
After completing the research and analysis, we can start the rush!
(1) Hypurr Fun Bot: Hypurr Fun Bot is a bot specifically for trading in the Hyperliquid ecosystem. There are also internal and external markets within the Hyperliquid ecosystem. The tokens that we can currently trade directly on Hyperliquid are from the external market, where external tokens need to compete for listing rights through auctions. Many tokens that are not directly listed on Hyperliquid can be traded through the internal market. Users only need to deposit USDC from their Hyper accounts into the bot, using it similarly to pump series bots.
However, it is important to note that the auction prices outside of Hyperliquid are absurdly high, with the most recent auction reaching $480,000. The difficulty of tokens listed on the inner market will increase sharply, and risks must be considered when entering the inner market.
Image source: Hypurr Fun Bot
(2) Hypercopy: Hypercopy is a follow-trading bot in Hyperliquid, allowing users to input the addresses of top traders to select specific smart money to follow.
Image source: Hypercopy
(3) PVP BOT: PVP BOT is a Telegram trading robot for the Hyper ecosystem, which will synchronize members' orders 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 token listings, and rapid tracking of 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 the game: Subsequent gameplay in the Hyper ecosystem
Finally, looking at the present and anticipating the future. The spot assets on Hyperliquid have skyrocketed, with the core Hyper series tokens such as HYPE reaching a market cap of $8 billion, PURR nearing $400 million, and HFUN reaching $250 million. If you feel that entering the market now might limit your profit-loss ratio even from a Layer 1 valuation perspective, we can choose to take the body of the fish rather than the head.
The opportunity for Hyperliquid's fish body also lies in the upcoming launch of 'HyperEVM'. Hyperliquid's technical architecture is quite unique, with its stack consisting of Hyperliquid L1 and HyperEVM (EVM) chains. These two chains exist as a unified state under the same consensus mechanism (HyperBFT) but run in independent execution environments. Among them, Hyperliquid L1 is a permissioned chain specifically designed for running high-performance trading applications such as perpetual contracts and spot order books. All high TPS native components can be implemented through L1. HyperEVM is an EVM-compatible chain that supports commonly used Ethereum tools and enables developers to deploy smart contracts. Smart contracts deployed on HyperEVM can directly access perpetual contracts and spots on L1, but the specific launch date has yet to be determined.
Hyperliquid technical architecture diagram, image sourced from the internet.
Once HyperEVM goes live, Hyperliquid will no longer follow the logic of the current PerpDEX but will transform into an 'application + trading platform'. At that time, various EVM applications and ecosystems will bloom, and new financial playtypes generated around perp and HLP will continuously emerge. Below are some of the projects summarized by the author.
HyperSwap: A DEX native to Hyperliquid EVM, now live on the testnet.
Kinetiq: A LSD project that provides liquid 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 for HyperLiquid, enabling fast and seamless bridging between EVM and SOL networks. (Note that this project name does not include 'per')
Hyperliquid Names: A domain project in the Hyperliquid ecosystem.
Felix Protocol: A stablecoin project in the Hyperliquid ecosystem, allowing users to borrow feUSD by collateralizing HYPE and mainstream assets.
Vegas GamebleFi: The first GamebleFi project that combines utility and gameplay using a fairness proof system.
Due to the limited length of the article, readers can refer to the more detailed tools and panoramic view of the Hyperliquid ecosystem organized below for more in-depth research.
A panoramic view of the Hyperliquid ecosystem, image sourced from the internet.
Amidst FOMO, how to ensure effective risk control?
Although the Hyperliquid ecosystem is developing rapidly, striving to 'catch up with SUI and surpass SOL', there are still some potential risks. For instance, there is centralization risk, often referred to as 'machine room chains'. According to ASXN data, there are currently 76 validators for Hyperliquid, but only 23 are active, and the ordering is quite centralized, although this issue will gradually improve in the future. Meanwhile, HYPE has low circulation but high FDV. Currently, HYPE's circulating market cap is around $9 billion, while FDV has reached around $27 billion.
Nevertheless, rather than jumping into the fray to take on newly launched tokens, why not give yourself a chance to embrace the new ecosystem?
* This article does not constitute any investment advice.
