Decentralized crypto exchange HyperLiquid recently launched its native token, HYPE, which quickly gained traction in the market. The token’s price surged from its initial value of $3.2 to $4.18, significantly boosting the fully diluted value (FDV) of the token to $4.2 billion. Following an airdrop, there are currently 333 million of the planned 1 billion tokens in circulation, resulting in a market cap of approximately $1.4 billion. The trading volume surpassed $165 million within the first hour of trading, indicating strong demand for the token.
A significant portion of the total token supply has been allocated for future emissions and community rewards, with 38.88% reserved for this purpose. Additionally, 23.8% of the supply is earmarked for current and future core contributors to the platform. HYPE can be staked to secure HyperBFT, the proof-of-stake consensus algorithm that powers the exchange, as well as used to pay transaction fees and develop decentralized finance (DeFi) applications.
Eligibility for the airdrop was based on users earning “points” over a six-month period leading up to May. While airdropped tokens often face immediate selling pressure as recipients seek to maximize their value, demand for HYPE appears to be surpassing supply. The token has shown strong upward momentum in the market, with the HYPE/USDC order book maintaining significant liquidity and a 5% market depth of around $4 million on both sides.
Overall, the launch of the HYPE token on HyperLiquid’s decentralized exchange has marked a successful start, with the token quickly gaining value and attracting significant trading volume. The allocation of token supply for future emissions, community rewards, and core contributors highlights a focus on long-term sustainability and growth in the ecosystem. By allowing users to stake HYPE for various purposes within the platform, HyperLiquid aims to increase user engagement and create a vibrant DeFi ecosystem. The strong market demand for HYPE following the airdrop indicates positive sentiment and potential for further growth in the future.
