The crypto market has been full of ups and downs this month. First, Trump sucked the blood of the entire market crazily, then CZs pet dog set off a PVP craze, and then the shocking inside stories of Lady Coin and Argentina Coin were exposed. The attention of the entire market was controlled by meme coins endorsed by celebrities and the government, but retail investors eventually found that what they waited for was just round after round of sickles, which was really exhausting.
At this time, Perp DEX, which started to convince people with its rising prices after TGE last year, suddenly announced the launch of HyperEVM mainnet at this delicate time. It has to be said that the morbid weakness of the market in the past month really needs a high-quality project with the strength to truly build the crypto world. HyperEVM chose to go online at this time like a master of scouting, which quickly attracted high discussion and attention.
What are the market sweet spots that Hyperliquid has hit?
Over the past month, the crypto world has entered an era of morality collapse and music deterioration. Leek bureau, rug plate, PVP casino, almost all retail investors have been bruised and battered in the zero-sum games of the hellish bull market. However, Hyperliquid has smelled opportunities in todays chaotic world and has steadily stepped on almost every market turning point.
Ecological filling, preemptive strike
As Solana is at the center of one vortex after another, the community is full of arguments that memes make it or break it. In addition, the large amount of unlocking that will be coming in March has brought greater uncertainty to the market. The price of SOL has already fallen by 30% in one month.
As soon as the news of HyperEVMs launch came out, Hyperliquid became a new market hotspot. According to deBridge statistics, a large amount of market funds flowed from Solana to Hyperliquid; CoinMarketCap market data showed that HYPEs trading volume increased by 261% in 24 hours. It seems that degens have indeed been mentally broken by various insider trading. Even if there is no so-called ten-fold or hundred-fold opportunity, they are more willing to trade on the blockchain actually built for crypto development.
As the meme receded and Solana fell, degens also began to look around for new gold-digging ecosystems, and all set their sights on BNB Chain, which was frequently called after CZ returned. However, the reality is not perfect. Countless investors experienced the embarrassment of not being able to buy or sell in the pvp war, network congestion, page freezes, being caught by clips, and encountering countless rugged Pixiu disks... Users found that BNB Chain was far from providing the same silky experience as Solana. The launch of HyperEVM has appropriately filled the thirst of investors for a new ecosystem.
In the DeFi field where Hyperliquid is located, high-frequency trading has increasingly prominent requirements for the real-time performance of blockchain. In this field, Monad has always been regarded as a competitor of Hyperliquid. This time, Hyperliquid launched its EVM before Monad released its test network. And what about Monad? Despite the high market demand, it has not even issued a coin yet. Faced with Hyperliquids operation, Monad did not even have the opportunity to fight back, but was sucked away by a wave of market attention and liquidity early.
Related reading: The next generation of public chain competition: MegaETH vs Hyperliquid vs Monad
Sector rotation, right time and right place
After SOLs sharp correction, ETH prices gradually recovered. Since many DeFi protocols (such as Uniswap, Aave, Compound, etc.) require ETH as a trading pair, collateral or underlying asset for liquidity providers, the recovery of ETH prices means that the ETH assets in these protocols are also increasing in value, which has boosted investor confidence and attracted more funds to flow into the DeFi field, thereby increasing the activity and trading volume of the entire DeFi market. In addition, the entire DeFi market is also turning towards a stable yield, and this upgrade of Hyperliquid is likely to bring more opportunities to earn liquidity income.
When the HyperEVM launch announcement was released on the afternoon of February 18, according to Coingecko data, the price of Hyperliquids native token HYPE quickly soared from $1.25 to $1.45 in the first hour, and trading volume surged to 2.3 million HYDRA tokens during the period. In addition, other DeFi tokens have also seen similar increases, such as AAVE from $105 to $112, and Compound (COMP) from $75 to $82. HYPEs market value also increased by 15.2% to $345 million in the first hour after the announcement. Rapid price fluctuations and market value growth indicate that the market is confident in the development of Hyperliquid and its potential impact on the DeFi ecosystem.
On the other hand, the AI sector, which has been popular since the end of last year, has been tepid since it was sucked by TRUMP. The HyperEVM launched this time is very suitable to be an ideal platform for AI-driven trading strategies because of its high throughput and low latency. In the narrative cycle of AI+Crypto, the launch of Hyperliquids EVM may indirectly affect AI-related tokens, especially the DeFAI project, which has the most practical application value in the current AI sector. It is very likely to start a new round of deployment in the Hyperliquid ecosystem. In addition, the existing AI projects in the Hyperliquid ecosystem may take advantage of this wave of attention to achieve a counter-trend rise, and now may be a good opportunity to buy at the bottom.
HyperEVM is online. What projects in the ecosystem are worth paying attention to?
HyperEVM is a general EVM-compatible chain that supports common tools of Ethereum. EVM is permissionless, and anyone can deploy smart contracts, which can also directly access on-chain perpetual contracts and spot liquidity on L1.
How to use HyperEVM for beginners
If you want to add the Hyperliquid network to your wallet, first go to Settings and select Add Custom Network. Next, fill in the following information: Chain ID is 999, Network name is Hyperliquid, enter RPC URL , and currency symbol is $HYPE. After filling in, click Confirm, and you can see the Hyperliquid network appear in the EVM network list.
To bridge to HyperEVM, follow the steps below. First, go to the web page , then click Spot and select $HYPE.
After that, click the “Send” button and enter the following address in the address bar: 0x22222222222222222222222222222222222222222222. Finally, enter the amount and click “Send” to complete the operation.
Currently, the yield of Hyperliquid is very impressive. According to X user @0x DeFiDevin , Hyperliquid users can currently achieve up to 50% Delta neutral returns by combining GammaSwap. Providing liquidity in the weETH/USDC pool on GammaSwap to obtain 80% of the returns, and then using half of this liquidity position to short ETH on Hyperliquid with 1 x leverage to obtain 10% funding fees. Through this combination strategy, it is basically possible to maximize returns while diversifying risks, and ultimately obtain a net return of 56%.
Potential ecological projects
Many DeFi teams have been preparing to launch with the EVM. Most of the well-known DeFi protocol types (AMMs, lending, liquidity staking, CDPs) are expected to launch with the launch of the EVM. These projects will improve overall capital efficiency by allowing HYPE holders to use HYPE as collateral in lending and market protocols. The following are some of the projects that have been launched on the mainnet:
Parsec (@parsec_finance)
Purrsec is a full-featured EVM explorer with extensive contract labels and ecosystem integrations, support for custom layouts for different address types, and contract verification capabilities. In addition, Purrsec allows users to monitor cross-chain deposits, addresses (integrated EVM and L1 portfolios), hot contracts, ecosystem labels, and L1 perpetual contract indicators. In addition, more features will be launched to highlight the unique connection between HyperEVM and Hyperliquid L1.
HyperSwap (@HyperSwapX)
HyperSwap is the native DEX of HyperEVM. HyperEVM allows users to deposit tokens in vaults to earn returns, borrow stablecoins as collateral, or provide liquidity (LP) instantly on HyperSwap. All functions can be seamlessly connected. At the same time, some developers have begun to build protocols on HyperEVM, including lending Hyperliquids perpetual contract positions, borrowing stablecoins with Hyperliquid Vault (HLP) as collateral, launching meme coins with one click, and circulating assets using the LST protocol.
Kittenswap (@KittenswapHype)
Kittenswap provides a fork of Velodrome v1, introducing Velodromes VE model and incentive mechanism. The project TGE allocated 15,000 tokens, accounting for 15% of the total; the airdrop allocated 20,000 tokens, accounting for 20% of the total. Currently, you can add liquidity to the token, exchange between different tokens, and participate in the veKITTEN airdrop by earning points. Voting and indicator functions will be released together with the $KITTEN token when it goes online.
In addition, after HyperEVM goes online, some projects will be launched on the mainnet one after another. Among them, lending projects include @felixprotocol, @hypurrfi, @sentimentxyz, @HyperYieldx, @hyperlendx, @KeikoFinance, @HyperstableX, @hyperdrivedefi and @kiblprotocol. The main liquidity staking tokens on HyperEVM include Kinetiq and Thunderhead. In addition to the aforementioned HyperSwap and KittenSwap, there is also Curve, which will provide incentives when the mainnet is launched.
Related reading: HyperEVM DeFi: A Guide to the Future
Since its launch, Hyperliquid has first broken the black box of CEX listing, and now it has returned to the spotlight with a more complete L1 ecosystem. How will the future crypto world evolve? The only thing that is certain is that there will always be huge uncertainty in the specific path of evolution.
Perhaps, as Hyperliquid founder Jeff said, cryptocurrency will reshape the operating paradigm of the financial system, and traditional finance will eventually migrate to the crypto ecosystem. We should always focus on building infrastructure with lasting value and build it into an indispensable cornerstone of future financial infrastructure. No matter how the industry evolves in ten years, these modules will continue to create value.
