When traders demand speed, deep liquidity, and low-latency order books, many DEXes strain under the pressure. Hyperliquid is aiming to satisfy that demand with a native Layer-1 blockchain built specifically for finance, offering on-chain order books, perpetuals, spot trading, and institutional-grade throughput. This week, we put HYPE, the native token of Hyperliquid, under the spotlight.
Launched in 2024, Hyperliquid is a decentralized finance platform built atop its own Layer-1 infrastructure, optimized for high-performance trading operations across perpetual and spot markets.
Today, we will cover the following topics:
– About Hyperliquid
– How does Hyperliquid work?
– Key Features
– Technical Analysis
– Why is HYPE The Coin of the Week?
About Hyperliquid (HYPE)
What is Hyperliquid?
Hyperliquid is a next-generation decentralized exchange ecosystem where both spot markets and perpetual futures are traded via on-chain order books.
This design eliminates the slippage and impermanent loss of AMMs, while opening the door to advanced trading features like limit orders, margin, and leverage.
The protocol also provides a native token issuance framework, allowing new projects to launch capped-supply tokens directly on Hyperliquid with instant order book integration.
This native standard ensures every token launched has clear liquidity pairs and transparent supply.
Dig deeper into HYPE whitepaper.
HYPE Token
HYPE is the fuel of the Hyperliquid ecosystem, with a capped supply of 1 billion tokens. Its utility spans across:
Trading Fees
Users pay fees in HYPE, with discounts available for stakers and high-volume traders.
Staking & Rewards
Validators and delegators secure the chain and earn a portion of network fees distributed in HYPE.
Governance
Token holders vote on protocol changes, trading parameters, reward schedules, and token standard upgrades.
Buybacks & Incentives
A percentage of trading fees are used for HYPE buybacks or redistributed to active participants, tying token value to real exchange usage.
Liquidity Incentives
Market makers and liquidity providers are rewarded in HYPE, encouraging deep order books.
How does Hyperliquid work?
HyperBFT Consensus
A proprietary consensus mechanism designed for sub-second block times and high transaction throughput.
On-Chain Order Books
All trading activity — spot and perpetual — is managed transparently on-chain, unlike AMMs. This delivers precise pricing and low slippage.
Cross-Chain Deposits
Traders can bridge assets from Ethereum and other networks, converting them into trading collateral on Hyperliquid.
Perpetual Futures
Leveraged trading is offered through transparent, trustless contracts, with funding rates determined on-chain.
Key Features and Use Cases
High-Performance Layer-1
Hyperliquid’s chain is engineered specifically for finance, using its HyperBFT consensus to deliver sub-second block times and handle thousands of orders per second without congestion. This makes it suitable for professional-grade trading at scale.
Fully On-Chain Order Books
Unlike AMMs that rely on liquidity pools and suffer from slippage and impermanent loss, Hyperliquid uses a central limit order book model. This allows advanced trading strategies. including limit orders, stop orders, and tighter spreads, while maintaining full on-chain transparency.
Perpetual Futures with Transparency
Traders can access leveraged products directly on-chain. Funding rates, liquidations, and margin requirements are handled in a trustless environment, combining the flexibility of perpetuals with the security of decentralized execution.
Cross-Chain Accessibility
Users can bridge assets like stablecoins and blue-chip tokens from other major blockchains. This cross-chain flexibility ensures capital flows easily into Hyperliquid’s ecosystem, growing depth and activity across markets.
Incentive Programs for Users and Liquidity Providers
Active traders, validators, and market makers are rewarded with HYPE distributions. This not only encourages deeper liquidity but also keeps spreads tight and execution efficient.
Fee Discounts and Buybacks
Traders who stake or hold HYPE enjoy reduced fees, while part of the protocol’s revenue is allocated to buyback programs or redistributed to participants, enhancing long-term token value capture.
Technical Analysis
As per our latest HYPE analysis, it rejected the upper bound of its channel and has been in a correction phase since.
Currently, HYPE is retesting the lower bound of its medium-term channel, which perfectly intersects with the structure marked in green and the $50 round number.
As long as this intersection holds, we will be looking for trend-following long setups, with $60 as the first target.
Why is HYPE The Coin of the Week?
Hyperliquid represents a breakthrough in DeFi, proving that decentralized exchanges can match the performance of centralized platforms while preserving transparency and user control.
HYPE is not just a governance token; it is tightly integrated into every aspect of the trading ecosystem, from fees to rewards to liquidity incentives.
From a technical perspective, HYPE has been overall bullish in the long term. It is currently in a correction phase, rejecting a strong structure and providing investors with a good opportunity to capitalize on the next bullish move.
This week, we explored HYPE, the native token of Hyperliquid — a high-performance Layer-1 blockchain and decentralized exchange ecosystem designed for advanced trading. By combining on-chain order books, perpetual futures, and a custom consensus mechanism built for speed, Hyperliquid delivers the efficiency of centralized platforms with the transparency of DeFi.
Thanks for tuning in to this week’s coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
