Hyperlquid Overview - Hyperlquid has been gaining market share from major exchanges, with its hype coin climbing towards the top 10 [1] - Hyperlquid consists of two core components: Hypercore (powers the DEX) and HyperEVM (generalized execution layer for DApps) [1] - Hyperlquid is expanding to new use cases, including decentralized social media platforms like Farcaster [2] Key Developments - Hyperlquid integrated with a cross-chain protocol, facilitating USDC bridging from other chains [1] - Hyperlquid launched HyperEVM, leading to an increase in DApps and TVL on Hyperlquid [1] - Hyperlquid introduced native multi-sig wallets, enhancing security and appealing to institutions [1] - Tether launched USDT0 on Hyperlquid, and Layer Zero launched Hyperbridge, enabling bridging of USDT and other cryptos [1] - The first billion-dollar long position was opened on Hyperlquid, demonstrating liquidity [1] Challenges and Risks - A trader's self-liquidation caused a $4 million loss on the DEX, raising decentralization concerns [1] - Hyperlquid delisted the Jelly token, sparking controversy and leading to a more decentralized delisting process [1] - Competition from centralized exchanges launching DEXs, such as Bybit's DEX on Solana, poses a significant challenge [3] - Limited team size (10 people) may hinder Hyperlquid's ability to compete with larger exchanges [3] - Potential hesitation from stablecoin issuers to launch native tokens on Hyperlquid due to centralization concerns [3] Hype Token Analysis - Hype's price is influenced by fee buybacks and DeFi leverage, but decoupling from trading volume raises concerns [2] - DeFi leverage, particularly whales borrowing against hype to buy more hype, is supporting its price action [2] - A potential mass liquidation event due to exogenous shocks (e g, escalation between Israel and Iran) could cause hype to fall as low as $23 [2] - Industry experts predict Hype could reach $300, giving it a market cap of around $100 billion [2] Future Milestones - The mainnet implementation of Hyperlquid Improvement Proposal 3 (HIP 3) will allow anyone to launch perpetuals on the DEX [2] - Each perpetual pair will require a stake of 1 million hype to mitigate market manipulation [2] - Hyperlquid is focused on stablecoins but lacks native USDC or USDT, possibly due to centralization [2][3]