**Hyperliquid's Meteoric Rise and Challenges Ahead**

Hyperliquid, a Layer-1 blockchain, has seen its HYPE token soar over 500% since a November airdrop, reaching a market cap of around $25 billion. Despite its rapid growth, asset manager VanEck warns that Hyperliquid's success hinges on building a strong developer community.

The platform's perpetual futures exchange now dominates 70% of the market, reflecting a broader surge in decentralized exchange volumes. However, with plans to launch an Ethereum Virtual Machine smart contract platform in 2025, Hyperliquid faces the challenge of sustaining its growth and justifying its high valuation.