As high FDV projects like Magic Eden and Movement continue to launch on major global exchanges, the pace of token listings mirrors the resonance seen in April this year. During such periods, the market often experiences supply-side redundancy, with altcoins in short supply. This causes Bitcoin and Ethereum prices to climb steadily, while altcoins listed on centralized exchanges (CEX) languish, leading to a divergence where listed altcoins seemingly enter a “bear market” as Bitcoin surges toward $100,000.

Image credit: Cha Busi community member.

Amid this awkward standoff between Bitcoin and altcoins, the Hyperliquid ecosystem stands out as a unique bright spot. Yesterday, the newly launched memecoin HYENA surged so much that it caused the Hypurr Fun Bot to crash.

Hyper Ecosystem Soars as Major Funds Accelerate Entry

Today, HYPE broke through $28. Since opening at $6 on November 29, HYPE has experienced a near-constant upward trajectory, surpassing Fantom, Aptos, and other Layer1 projects. It now boasts a circulating market value of approximately $9 billion and an FDV of $27 billion, ranking among the top 30 crypto assets by market cap.

Source: CoinGecko

HYPE’s epic airdrop was a major turning point for the Hyperliquid ecosystem. Before the TGE, Hyperliquid already had a strong wealth creation effect, but discussions about the ecosystem were scarce in the Chinese-speaking community. Most people still classify Hyperliquid as a PerpDEX like dYdX. However, after the airdrop, HYPE’s meteoric rise reshaped the public perception of Hyperliquid from a PerpDEX to a high-performance trading blockchain. This shift in valuation logic—from DEX to blockchain—has continuously raised Hyperliquid’s ceiling.

In addition to HYPE, Hyperliquid’s blue-chip assets and newly listed tokens have also attracted the attention of major funds.

Blue-Chip Assets Hit New Highs

Despite Hyperliquid’s overall liquidity spring, some flagship assets in its ecosystem have outperformed averages. Apart from HYPE, notable examples include PURR, HFUN, and JEFF.

PURR

PURR is a memecoin airdropped to early users of Hyperliquid and has now become the undisputed mascot of the ecosystem. Since December 11, PURR’s value has risen over 200%, reaching a market cap of $370 million.

The K-line chart of PURR.

HFUN

Hypurr Fun is the fastest Telegram trading bot on Hyperliquid, and HFUN is its platform token. After gaining recognition on December 5, HFUN’s price skyrocketed, achieving a 1,500% increase in 10 days.

The K-line chart of HFUN

Meanwhile, according to blogger Arthur‘s on-chain tracking, GCR purchased HYPE at $10, PURR at $0.30, JEFF at $19, and HFUN at $39.

Stunning Token Listing Effects

Unlike the inscrutable token listing rules of CEXs, Hyperliquid adopts a Dutch auction system. In this system, the starting price is set higher than market expectations and gradually decreases until the first bid is made at an acceptable price. Projects compete for the right to list on Hyperliquid through this auction mechanism. This Dutch auction listing mechanism offers several advantages.

First, it continuously drives up the auction prices for tickers. For instance, after SOLV was sold for $128,000, the next auction began at a price higher than $128,000. If the starting price were set lower than the previous auction, it would likely be immediately accepted, incentivizing a continuous increase in starting prices.

Hyperliquid Token Listing Auction History

This has indeed been the case. Following the $128,000 sale of SOLV, subsequent auctions saw FARM sold for $180,000, and most recently, MON reached a staggering $480,000. The auction prices, like HYPE’s market cap, quadrupled in just 10 days, consistently setting new highs.

Second, this auction mechanism helps filter for higher-quality projects. To recoup listing costs, project teams are incentivized to ensure their tokens perform well post-listing.

The latest auctioned tokens, such as SOVRN and MON, are noteworthy because they were not first launched on Hyperliquid but already had liquidity pools on other chains. SOVRN, for example, surged by over 100% after its auction concluded at 10:00 AM on December 14. Similarly, MON saw a 50% increase after its auction was completed at 2:00 PM on December 15.

SOVRN and MON Both Showed Significant Gains Post-Auction

With market participants flocking to Hyperliquid, how can we secure a seat at the table?

How to Stay at the Table: What You Need to Know

Dealing the Cards: Preparations Before Entering

First, as the saying goes, “Before soldiers move, provisions must go first.” If you’re new to this space, you’ll need to register an account and familiarize yourself with Hyperliquid’s trading mechanisms.

Registering an Account

Visit the official Hyperliquid website and click “Connect” to link your wallet. Then, go to the “Portfolio” section, click “Deposit,” and switch your wallet to the Arbitrum network to deposit USDT/USDC into Hyperliquid. Be sure to leave a small amount of ETH in your wallet for GAS fees.

Trading

Once your account is registered and funded, you can start trading. Hyperliquid primarily offers “Perp” (perpetual contracts) and “Spot” trading. Within Spot trading, you can choose “Strict” or “All.” Strict Spot includes blue-chip assets from the Hyperliquid ecosystem, such as PURR, JEFF, HFUN, and CATBAL. It’s worth noting that GCR has also invested in these core assets.

GCR’s Purchases of Hyper Ecosystem Blue-Chip Assets

If you’re more of a degen, you can also participate in Hyperliquid’s HLP. HLP allows all users to contribute by depositing USDC to provide liquidity for all listed assets on the exchange. Participants can earn a share of trading fee revenues and profits through HLP’s market-making strategies.

Checking Tokens

Aside from the already booming blue-chip assets, one of Hyperliquid’s major wealth-generation narratives stems from its listing effects. Readers can visit Hyperliquid’s official auction website to learn about the auction process and track the latest auction activity through the Hyperliquid Blockchain Explorer introduced later.

Calling the Play: How to Participate Efficiently

Second, as the saying goes, “A workman must first sharpen his tools if he is to do his work well.” Just as playing Sol memes requires GMGN, unlocking Hyperliquid’s ecosystem features also requires the help of a range of tools.

Research and Analysis

Effective research and analysis are essential before engaging in the Hyperliquid ecosystem.

（1）ASXN: ASXN is a data dashboard for the Hyperliquid ecosystem, similar to Dune for Hyperliquid. You can use ASXN to view relevant data, such as recently auctioned tokens, tickers, prices, and trading volume ratios. The Hyperliquid dashboard collection appears in the lower-left corner after opening the website. ASXN’s official Twitter account, @asxn_r, also updates key Hyperliquid ecosystem data. If you prefer not to search for information yourself, you can follow their Twitter account. ASXN’s user interface is well-designed and smooth to use.

Image Source: ASXN

（2）Velo: Velo is another data visualization dashboard that can be used to compare data between Hyperliquid and CEXs.

Image Source: Velo

（3）Hyperdash: Hyperdash is a trading analysis dashboard that tracks high-yield or high-win-rate trading addresses within Hyperliquid, essentially identifying “smart money” on the platform.

Image Source: Hyperdash

（4）HypurrScan: HypurrScan is Hyperliquid’s Layer1 blockchain explorer, allowing users to query all Hyperliquid-related data firsthand.

Image Source: Hypurrscan

Trading Bots

Once you’ve completed your research, it’s time to take action!

（1）Hypurr Fun Bot: This bot is specifically designed for trading in the Hyperliquid ecosystem. Hyperliquid divides tokens into “external” and “internal” listings. Tokens directly tradable on Hyperliquid are external listings, which require auction participation for listing rights. Internal tokens, not directly listed on Hyperliquid, can still be traded. To use the bot, users deposit USDC into their Hyperliquid account and fund the bot.

However, external token auctions have become extremely expensive, with the latest auction reaching $480,000. Internal tokens face increased listing challenges, so consider the risks before diving in.

Image Source: Hypurr Fun Bot

（2）Hypercopy：Hypercopy is a copy-trading bot within Hyperliquid. Users can input the addresses of top traders to mirror the actions of “smart money.”

Image Source: Hypercopy

（3）PVP BOT: PVP BOT is a Telegram trading bot for the Hyperliquid ecosystem. After joining a Telegram group, it syncs members’ trades in real-time, allowing PVP battles within the group.

Information and Updates

For the latest updates on Hyperliquid, such as auction prices, new listings, and ecosystem developments, following @HyperliquidNews on Twitter is your best option. This channel provides timely updates on everything in the Hyperliquid ecosystem and can be seen as Hyper’s version of Blockbeats!

Following the Play: Future Opportunities in the Hyper Ecosystem

Seizing the Present and Looking to the Future

Currently, Hyperliquid’s spot trading tokens have skyrocketed. The most core assets in the Hyper system, such as HYPE with a market cap of $8 billion, PURR at nearly $400 million, and HFUN at $250 million, are leading the charge. If you feel that jumping in now—given the valuation benchmarks of Layer1 projects—may have limited profit margins, you can aim for the “middle cut” rather than the “head of the fish.”

The middle-cut opportunities in Hyperliquid lie in the upcoming launch of “HyperEVM.” Hyperliquid’s technical architecture is unique, comprising two chains: Hyperliquid L1 and HyperEVM. These two chains exist in a unified state under the same consensus mechanism (HyperBFT) but operate in independent execution environments. Hyperliquid L1 is a high-performance trading permission chain for running native components like perpetual contracts and spot order books at high TPS. HyperEVM, an EVM-compatible chain, supports Ethereum tools and allows developers to deploy smart contracts. These smart contracts can directly access perpetual contracts and spot trading on L1. The exact launch date for HyperEVM is still undetermined.

Hyperliquid Technical Architecture Diagram (Source: Online)

Once HyperEVM is launched, Hyperliquid will undergo a significant transformation. Currently, Hyperliquid is based on PerpDEX logic, but with the launch of HyperEVM, it will evolve into an “application + trading platform.” This will significantly expand the platform’s ecosystem, attracting various EVM applications and participants, and giving rise to new financial innovations surrounding Perp and HLP. Below are some key ecosystem projects I’ve summarized:

HyperSwap: Hyperliquid’s native decentralized exchange (DEX) for EVM, which has already launched on the testnet.

Kinetiq: A Liquid Staking Derivatives (LSD) project that provides liquidity staking support for Hyperliquid.

HyperLendX: The first lending platform on Hyperliquid, now live on the testnet.

Keiko Finance: A permissionless lending protocol with dynamic interest rates and flexible liquidation ratios.

HyBridge: A cross-chain application on Hyperliquid that allows for seamless bridging between EVM and SOL networks (note: this project’s name does not include “per”).

Hyperliquid Names: A domain project within the Hyperliquid ecosystem that offers domain solutions.

Felix Protocol: A stablecoin project in the Hyperliquid ecosystem that allows users to use HYPE and major assets as collateral to borrow feUSD.

Vegas GambleFi: The first GamebleFi project that integrates fair proof systems with both practicality and gameplay.

Due to space constraints, readers can refer to the detailed Hyperliquid ecosystem panoramic chart below for a deeper understanding of the tools and ecosystem projects.

Hyperliquid Ecosystem Panoramic Chart（Image source from the web）

Risk Management: How to Handle Potential Risks of Hyperliquid?

Although the Hyperliquid ecosystem is developing rapidly and aiming to “surpass SOL, catch up to SUI,” there are also potential risks, particularly centralization risks, commonly referred to as the “data center chain” problem.

According to ASXN data, Hyperliquid currently has 76 validators, but only 23 are active, and the ordering process is relatively centralized. This issue is expected to improve over time.

Additionally, HYPE has low liquidity and high FDV. While HYPE’s circulating market cap has reached approximately $9 billion, its fully diluted valuation (FDV) is as high as $27 billion, indicating limited liquidity.

Nonetheless, compared to chasing coins that frequently launch, embracing the new Hyperliquid ecosystem might be a more promising choice.

Related Materials

1. “Behind the $6 Billion Valuation, Hyperliquid Tries to Reshape the Cryptocurrency Listing Pattern”
2. “How to Evaluate Hyperliquid’s Future Before HyperEVM Launches?”

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