Written by: A Ray's New World
With high FDV projects like Magic Eden and Movement continuously launching on international exchanges, the pace of listings in the market has shown a resonance similar to that in April of this year. Often at this time, the market will produce redundant supply on the supply side, leading to a mismatch where altcoins are in short supply while major coins like Bitcoin and Ethereum continue to reach new highs, resulting in a divergence from those altcoins that have already listed on CEX, anticipating the 'bear market' of Bitcoin hitting 100,000 USD.
Image sourced from the internet
At this awkward time when BTC and altcoins are eyeing each other, the Hyperliquid ecosystem is flourishing. Even yesterday, the newly launched memecoin HYENA has surged to a level that caused the Hypurr Fun Bot to crash.
The Hyper ecosystem is experiencing a broad surge, with top funds accelerating their entry.
Just today, HYPE broke through 28 USD. Since HYPE opened at 6 USD on November 29, it has experienced almost no pullback, smoothly surpassing Layer1s like Fantom and Aptos, reaching a current circulating market cap of about 9 billion USD and FDV of 27 billion USD, directly entering the top 30 of crypto asset market caps.
Image source: CoinGecko
The epic airdrop of HYPE is the biggest turning point in the Hyperliquid ecosystem. Before the TGE, although Hyperliquid had a strong wealth effect, there was little discussion about the Hyper ecosystem in the Chinese community, and most people still 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 machine coin', and Hyperliquid had already transformed from a PerpDEX to a high-performance trading public chain in the public eye. This is also the reason why Hyperliquid's valuation ceiling continues to rise (shifting from DEX valuation logic to public chain valuation logic).
In addition, blue-chip assets on Hyperliquid and newly listed tokens have also attracted the interest of top market funds.
Blue-chip assets continue to hit new highs
Recently, although Hyperliquid has welcomed a spring of liquidity overall, the assets that have risen above the average are still some leading assets in the Hyper ecosystem, including PURR, HFUN, and JEFF, in addition to HYPE.
PURR
PURR is the memecoin airdropped to early users by Hyperliquid, and it has now become the strongest meme consensus of PURR, without exception. PURR is also regarded as the official mascot of Hyperliquid. Since December 11, its rise has surpassed 200%, reaching a market cap of 370 million.
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 reached new highs, with a rise of up to 1500% in 10 days.
K-line chart of HFUN
At the same time, according to on-chain tracking by blogger Arthur, GCR purchased $HYPE at a price of 10 USD, bought $PURR at 0.30 USD, purchased $JEFF at 19 USD, and bought $HFUN at a price of 39 USD.
The astonishing listing effect
Unlike the inscrutable listing rules of CEX, Hyperliquid adopts a Dutch auction rule. The starting price of a Dutch auction begins above market expectations, then continuously lowers until the first to accept that price is sold. Project parties compete for the right to list on Hyperliquid through auctions. This Dutch auction listing mechanism has many benefits.
Firstly, the auction price of the Ticker will constantly increase. 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 previous price, it is very likely to be sold immediately, so this will incentivize the starting price to keep rising.
Token auction history on Hyperliquid
This is indeed the case. Following the sale of SOLV for 128,000 USD, there was a subsequent auction price of 180,000 USD for FARM, and recently MON was sold for an astronomical price of 480,000 USD. The auction price and the market cap trend of HYPE have both quadrupled in 10 days, reaching new highs.
Secondly, this auction mechanism will filter out higher quality projects. The project parties will enhance the listing effect significantly to recover listing costs.
The latest auction tokens such as SOVRN and MON are worth noting that these tokens did not debut on Hyperliquid but already had pools on other chains. After the auction of SOVRN completed at 10 AM on December 14, it saw a rise of over 100%. Coincidentally, MON also experienced a 50% rise after its token auction completed at 2 PM on December 15.
SOVRN and MON both saw significant increases after the auction.
With the market's purchasing power bustling into the scene, how should we take a seat at the table?
To stay at the table, what gameplay should you understand?
Preparation work before entering the arena
First, before the army moves, the provisions must be ready. If you are a beginner encountering this for the first time, you need to register an account and familiarize yourself with Hyperliquid's trading mechanism.
Register an account
After entering the Hyperliquid official website, click the 'connect' link to link your wallet. Then click 'Portfolio' and select 'Deposit' to deposit USDT/USDC into Hyperliquid while switching your wallet to the Arbitrum chain. Note that you need to leave a small amount of ETH for GAS.
Conduct transactions
After registering and depositing, you can start trading. The main trading assets on Hyperliquid are divided into 'Perp' (contracts) and 'Spot' (spot), with spot further selectable as 'Strict' and 'All'. Strict type spots are mostly blue-chip assets within the Hyperliquid ecosystem, such as PURR, JEFF, HFUN, CATBAL, etc. It is worth noting that GCR has also purchased these core assets.
GCR's address for purchasing Hyper ecosystem blue-chip assets
If you're degenerate 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 portion of the trading fee revenue and profit through market-making strategies in the HLP market.
View Tokens
In addition to the already surging blue-chip assets, a major wealth myth of Hyperliquid comes from its listing effect. Readers can visit Hyperliquid's official auction site to understand the detailed auction process and follow the latest listing auction dynamics through the subsequently introduced Hyperliquid blockchain explorer.
Bidding: How to participate efficiently
Secondly, to do a good job, you must first sharpen your tools. Just as playing Sol meme cannot be separated from GMGN, unlocking various gameplay in the Hyperliquid ecosystem also requires a series of tools.
Analysis and Research
Before participating in trading within the Hyperliquid ecosystem, efficient research and analysis are essential.
ASXN: ASXN is a data dashboard for the Hyperliquid ecosystem, similar to Dune within Hyperliquid. You can query relevant data through ASXN, such as the latest auction tokens, tickers, prices, trading volume ratios, and other information. After opening the website, the Hyperliquid data dashboard collection will appear in the bottom left corner.
At the same time, ASXN's official Twitter account @asxn_r will continuously update some key data about the Hyperliquid ecosystem. If you do not want to use ASXN directly to painstakingly mine information, you can follow their official Twitter. Personally, I think ASXN's UI is well designed, and it feels very smooth and comfortable to use.
Image source: ASXN
Velo: Velo is also a data visualization dashboard website but can be used to query other data, not exclusively for Hyperliquid-related data. I often use it to compare the differences between Hyperliquid and CEX data.
Image source: Velo
Hyperdash: Hyperdash is a trading analysis dashboard. Users can track trading addresses with high win rates or returns in Hyperliquid based on Hyperdash, which represents the smart money on Hyperliquid.
Image source: Hyperdash
HypurrScan: HypurrScan is the Layer1 blockchain explorer on Hyperliquid, where users can query all first-hand data related to Hyperliquid through this explorer.
Image source: Hypurrscan
Trading Bot
After completing research and analysis, we can begin our venture!
Hypurr Fun Bot: Hypurr Fun Bot is specifically designed for trading within the Hyperliquid ecosystem. It is also divided into internal and external markets. The tokens we can trade directly on Hyperliquid are external market tokens, which need to be auctioned for the right to list. 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, and the usage is similar to the pump series of bots.
However, it should be noted that the auction prices on Hyperliquid's external market are outrageously high, with the recent auction reaching as high as 480,000 USD. The difficulty of later internal market token listings will sharply increase, and risks need to be considered when entering the internal market.
Image source: Hypurr Fun Bot
Hypercopy: Hypercopy is a copy trading robot in Hyperliquid, where users can input the addresses of Top Traders to choose to follow specific smart money.
Image source: Hypercopy
PVP BOT: PVP BOT is a Telegram trading bot for the Hyper ecosystem. After entering the Telegram group, it will synchronize members' trades 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 updates on listing information, 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 bid: Subsequent gameplay in the Hyper ecosystem
Finally, grounded in the present, we look to the future. The spot assets on Hyperliquid have already soared, with the most core bundle of Hyper-related assets such as HYPE reaching a market cap of 8 billion, PURR approaching 400 million, and HFUN also reaching 250 million. If you feel that even considering Layer 1 valuation, the space for entering the market now will be relatively limited, we can choose to eat the fish body instead of the fish head.
The opportunity for fish body in Hyperliquid also lies in the upcoming launch of 'HyperEVM'. Hyperliquid's technical architecture is very unique, with its stack consisting of Hyperliquid L1 and HyperEVM (EVM) as two chains. 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 specifically for running high-performance transactions like perpetual contracts and spot order books. All high TPS native components can be implemented via L1. HyperEVM is an EVM-compatible chain that can support commonly used Ethereum tools and enable developers to deploy smart contracts. Smart contracts deployed on HyperEVM can directly access perpetual contracts and spots on L1, with the specific launch time yet to be determined.
Technical architecture diagram of Hyperliquid, image sourced from the internet.
When HyperEVM goes live, Hyperliquid will no longer follow the current PerpDEX logic but will be an 'application + trading platform'. At that time, various EVM applications and ecosystems will flourish, and new financial gameplay around perp and HLP will undoubtedly emerge continuously. Below are some of the ecological projects summarized by the author:
HyperSwap: The native DEX of Hyperliquid EVM, which has now launched the testnet.
Kinetiq: A LSD project that provides liquidity staking support for Hyperliquid.
HyperLendX: This project is the first lending platform on Hyperliquid, now launched 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 have 'per').
Hyperliquid Names: A domain name project within the Hyperliquid ecosystem.
Felix Protocol: A stablecoin project in the Hyperliquid ecosystem that allows using HYPE and mainstream assets as collateral to borrow feUSD.
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 overview of the Hyperliquid ecosystem summarized below for deeper research.
Overview of the Hyperliquid ecosystem, image sourced from the internet.
In addition to FOMO, how to manage risk effectively?
Although the development of the Hyperliquid ecosystem is booming, rapidly striving to 'catch up SUI and surpass SOL', there are still some potential risks associated with Hyperliquid. For instance, centralization risk, commonly referred to as 'machine room chain'. According to ASXN data, there are currently 76 validators for Hyperliquid, but only 23 are active, and the sorters are also relatively centralized; however, this issue will gradually improve in the future. Additionally, HYPE has low circulation but high FDV. Currently, HYPE's circulating market cap has reached around 9 billion USD, while FDV has soared to around 27 billion USD.
Despite this, instead of just picking up the newly listed tokens, it is better to give yourself a chance to embrace the new ecosystem.
