- Due in large part to Hyperliquid’s spot token success, the ecosystem’s total value locked and general level of excitement is growing.
The popularity of Hyperliquid’s recently introduced spot tokens and points program is driving growth in the ecosystem of this Layer 1 blockchain.
Since introducing native spot trading on March 28, the chain’s total value locked (TVL) has increased by 90% to $653 million, almost doubling in value.
The movement was started by Hyperliquid Improvement Proposals (HIPs) 1 and 2, which propose a revolutionary spot liquidity mechanism called Hyperliquidity and permit the native deployment of native tokens and onchain spot order books, respectively.
HIP-1 and HIP-2 are steps toward general purpose infrastructure with performant native components, according to Hyperliquid’s release.
A Layer 1 blockchain called Hyperliquid seeks to provide high throughput at an affordable price. It evolved from what was once a permanent decentralized exchange (DEX), which in February 2023 began running on Ethereum Layer 2 Arbitrum for alpha testing.
With $6.7 billion in volume over the past seven days, Hyperliquid has emerged as the third-largest DEX among derivatives platforms according to TVL.
Points Scheme
Starting on May 29 and expected to end in Q4, the ecosystem’s points season is one of its main drivers of success. Participants in the Hyperliquid ecosystem who trade on the platform receive weekly point allocations from the program.
The ecosystem’s points scheme and initial spot launch, $PURR, have increased demand for new launches.
Since its April 16 introduction, $PURR—Hyperliquid’s native memecoin and original spot token—has increased by 187%, bringing its market valuation to $120 million.
Holding $PURR allows users to earn extra Hyperliquid points by holding their tokens, which were previously only available to those who were actively trading on the decentralized exchange. Users who hold $PURR have also received airdrops of various spot tokens inside the Hyperliquid ecosystem.
In the meantime, the value of several of Hyperliquid’s spot tokens has been rising. Spot tokens like $HFUN and $JEFF have had price increases of more than ten times since its inception, which has created a wealth effect for many of the company’s early adopters who have held $PURR.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
