Hyperliquid has quickly made a name for itself as a dominant player in the on-chain perpetual and spot markets since the successful Token Generation Event (TGE).
Although its token, HYPE, has seen some price leveling off in recent weeks, the long-term appearance is nothing but thumbs up. Hyperliquid’s performance and its march toward 2025 typify the platform’s capacity to grow and to impress in a tough competitive scene.
HYPE Token: Strong Foundations for Continued Growth
The period of time post-TGE that Hyperliquid has occupied since launching has been marked by several key drivers that indicate the platform’s long-term success potential. The standout metric that we’ve seen arise since launch has been the increase in trading revenue, where we’re seeing not just trading volume, but also open interest, increase consistently. At the same time, there’s been virtually no user attrition, which is to say that traders have been sticking around and are engaged in trading on the platform.
The platform’s capacity for rapid execution and matching of trades to market demand has solidified its competitive standing. A recent instance of this is the listing of the TRUMP token, which has brought even more attention to Hyperliquid. The platform’s ability to seamlessly integrate new trading pairs and listing assets into its growing ecosystem has turned a big, even, influx of users and trading activity.
Anticipation surrounds the planned release of HyperEVM, an upgrade expected to drive even more trading volume on the platform. With HyperEVM, several new features are supposed to roll out, and these are expected to increase the platform’s functionality. Currently, the top feature that new users might notice is the inclusion of transaction fees. Another feature HYPE will serve as the gas token. And you might be asking: What’s a gas token?
Diversified Revenue Streams and a Strong Tokenomics Model
One of the main reasons Hyperliquid has been successful since its Token Generation Event is that it has begun pulling in revenue from several different sources. The primary new source is listing tokens through Dutch auctions. This has evolved into a fairly core part of the Hyperliquid revenue model. That means when you see a new token in a listing on the platform, it’s probably been put there via an auction. And when that happens, there’s a transactional fee attached that goes into the Hyperliquid wallet.
Integrating HyperEVM will also bring in transaction fees, adding to Hyperliquid’s already diversified revenue streams. Those fees will be paid in HYPE, which not only boosts demand for the token but also gives it more utility in the ecosystem. Because of that, you can expect the tokenomics behind HYPE to improve, giving the community even more reasons to hold and stake the token.
At present, around 43% of the circulating HYPE supply is staked, receiving an annual percentage yield (APY) of 2.3%. This staking program not only offers rewards in the form of token returns but also provides a real opportunity for participating in future airdrops associated with upcoming HYPE-based projects. Of course, these incentives are intended to help drive further staking interest, but they also create a positive feedback loop that benefits both the stakers and the platform.
Hyperliquid is also employing trading fees and token listing revenues for HYPE buybacks, which means there’s now consistent buy-side pressure and, as a result, greater price stability for the token. So what does all this mean for HYPE holders? Well, in addition to a growing “use case” for the token, which now serves as the utility backbone for the Hyperliquid trade settlement layer, there’s also the opportunity, through potential future governance participation or airdrops, to reap even larger rewards from HYPE’s hyperliquid ecosystem.
Hyperliquid Post-TGE According to Nansen Research
Hyperliquid has continued to grow post-TGE, solidifying itself as a dominant force in the on-chain perpetual and spot markets. While the price has been sideways or slightly declining in recent weeks, the long-term growth… pic.twitter.com/ajvPC76RmS
— JUN.hl (@KORypto_JUN) February 18, 2025
HYPE Token Valuation and Growth Outlook: A Bright Future
When we consider HYPE’s valuation, the token is still seen as being undervalued next to centralized exchanges (CEXs) and layer 1 (L1) blockchains it’s competing against. The fully diluted valuation (FDV) of HYPE is quite low, which means it has plenty of room to not just grow, but potentially moon, especially since Hyperliquid has all these revenue streams coming in now and seems to be doing everything right from an infrastructural and business development standpoint.
In a bullish market scenario, plenty of analysts reckon that HYPE could double, moving back toward its previous all-time high (ATH) of $35. That would be about a 48% increase from current levels. Nevertheless, some market watchers caution that a 4x increase, bringing the ether’s FDV to $100 billion or more, might be a little too enthusiastic, especially in light of our present conditions.
While the potential for Hyperliquid and HYPE to grow massively exists, they’re much more likely, in my estimation, to take on a kind of Web3 value proposition and see kind of gradual but sustainable appreciation.
It is clear that Hyperliquid is a growing competitor for centralized exchanges, providing a robust on-chain trading alternative. The platform is focused on the on-chain perpetual and spot markets and appears to be continuing its path toward expansion and improvement. The offerings seem top-notch, and the user base is expanding.
Looking Ahead: Hyperliquid’s Path to Continued Dominance
Hyperliquid’s growth since its Token Generation Event has laid a solid groundwork for ongoing success in 2025 and later. As the platform not only gains users but also diversifies what it offers those users, the HYPE token looks increasingly likely to keep rising in value over the long haul.
The reasons are many, and they’re pretty straightforward:
– The launch of HyperEVM means that many more trading pairs can now be accessed by HYPE token holders.
Hyperliquid is well-positioned to cement its status as a key player in the on-chain perpetual and spot markets. Its diverse revenue model, solid tokenomics, and growth-oriented development ecosystem make HYPE a token to watch in the coming months. With all that in mind, let’s take a closer look at Hyperliquid and its native token, HYPE.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/hyperliquids-strong-post-tge-growth-a-closer-look-at-hype-tokens-long-term-prospects/