Hyperliquid (HYPE), launched in November 2024, is the native token of the Hyperliquid Layer 1 (L1) blockchain, a decentralized platform optimized for perpetual futures trading and DeFi applications. Built from the ground up, Hyperliquid offers a fully on-chain order book exchange with near-instant transactions, zero gas fees, and up to 50x leverage. Its custom HyperBFT consensus algorithm ensures high performance, supporting 100,000 orders per second with sub-second block latency. HYPE powers governance, staking, and fee-based token burns, driving the ecosystem’s vision of an open, transparent financial system.

Key Features

  • On-Chain Order Book: Unlike most decentralized exchanges (DEXs), Hyperliquid’s order book is fully on-chain, ensuring transparency and security.
  • High Performance: Processes ~100,000 orders/second with <1-second block latency, ideal for perpetual futures and spot trading.
  • Zero Gas Fees: Eliminates transaction costs, enhancing accessibility for traders.
  • Ecosystem: Supports tokens like PURR, LIQD, and PIP, with $7.8 billion in total value locked (TVL), ranking #9 among blockchains.

HYPE Token

  • Purpose: Used for governance, staking, and buyback-and-burn from trading fees, reducing supply over time.
  • Supply: Circulating supply of ~333.93 million HYPE, with a total supply of ~1 billion and a max supply of 1 billion.
  • Contract Address: Not explicitly listed on CoinGecko, as HYPE is native to Hyperliquid L1, tradeable via app.hyperliquid.xyz.

Who Are the Founders of Hyperliquid?

Hyperliquid was founded by a team of developers from prestigious institutions like Harvard, Caltech, and MIT, with experience at tech and financial firms. The team remains pseudonymous, emphasizing a community-driven, self-funded approach without external venture capital. This autonomy ensures alignment with DeFi’s decentralized ethos.

What Makes Hyperliquid Unique?

HYPE and the Hyperliquid L1 stand out for their performance and trader-focused design:

  • Fully On-Chain DEX: Offers centralized exchange (CEX)-like UX with one-click trading, partial take-profit/stop-loss orders, and API support.
  • Deflationary Model: Burns HYPE using spot trading fees (e.g., $2.89M USD burnt to date), reducing supply and potentially increasing value.
  • Airdrop Impact: The largest airdrop in crypto history (2024) distributed 38.8% of HYPE supply, driving 70,000+ new users and sustained price growth.
  • Ecosystem Growth: Supports AI-driven tokens like LIQD (LiquidLaunch) and community tokens like PIP, fostering innovation.

Hyperliquid’s 70% dominance in on-chain perpetuals and $1.6T in cumulative trading volume since 2023 highlight its market leadership.

HYPE Network Upgrades (2025)

  • HyperEVM: Early-stage EVM compatibility enables smart contract development, boosting tokens like LIQD.
  • Fee Burns: Over 107,000 HYPE ($2.89M USD) burnt from spot fees, with no token emissions or unlocks for 12 months, enhancing deflationary pressure.

HYPE and Sustainability

Hyperliquid’s HyperBFT consensus is energy-efficient compared to proof-of-work, leveraging a validator set for low-latency, secure transactions. No specific carbon neutrality initiatives are reported, but its PoS-like design aligns with eco-friendly blockchain trends.

How Is HYPE Secured?

HYPE and the Hyperliquid L1 are secured through:

  • HyperBFT Consensus: A custom algorithm inspired by Hotstuff, ensuring secure, decentralized transaction validation
  • Validator Set: The same validators secure the L1 and its order book, maintaining network integrity.
  • On-Chain Transparency: All trades, orders, and liquidations are recorded on-chain, verifiable by users.
  • Governance: HYPE holders influence protocol upgrades, enhancing community-driven security.

Conclusion

Hyperliquid (HYPE) powers a high-performance L1 blockchain, revolutionizing DeFi with its on-chain order book and zero-fee perpetuals trading. Its deflationary model, massive airdrop, and growing ecosystem make it a DeFi leader.