Hyperliquid’s Historic 2024 Airdrop: A Catalyst for Rapid Adoption
Hyperliquid has quickly emerged as a prominent player in the decentralized finance (DeFi) landscape, largely due to its groundbreaking 2024 airdrop. This strategic move distributed 31% of the $HYPE token supply to over 90,000 wallets, uniquely positioning Hyperliquid to prioritize retail investors over venture capital (VC) backers. This approach fostered a sense of ownership among everyday traders, aligning their incentives with the platform’s growth and governance, unlike many other protocols that tend to concentrate power within institutional circles.
The retail-centric distribution model has sustained high levels of engagement, as tokenholders are more empowered in governance processes. This democratized approach to ownership stands in stark contrast to the traditional venture-backed projects, where token distribution is often heavily concentrated.
What Is Hyperliquid?
Hyperliquid is an innovative on-chain trading platform specifically designed for decentralized perpetuals. It distinguishes itself through several key features:
- Zero gas fees
- Ultra-fast order execution
- Deep liquidity
- No KYC, no sign-ups
These features make Hyperliquid one of the few platforms where users can trade fully on-chain without compromising speed or user experience. This has attracted a diverse user base eager to leverage the benefits of decentralized trading.
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Surpassing Ethereum in On-Chain Revenue
In July 2025, Hyperliquid achieved a significant milestone by capturing a 35% market share in blockchain fee revenue, surpassing major Layer 1s like Ethereum and Solana. This shift signifies a broader movement of liquidity away from centralized exchanges (CEXs) toward decentralized finance infrastructure, highlighting a growing trust in DeFi solutions.
According to recent data, Hyperliquid already commands a 6.1% share of the global derivatives market, gradually reducing the market share of established players such as Bybit and OKX. With its rapid execution speeds, transparent governance, and innovative fee structure, Hyperliquid is positioned as a leading global crypto derivatives venue.
The Buyback Engine: Why $HYPE Demand May Keep Growing
The demand for $HYPE tokens is further fueled by Hyperliquid’s Assistance Fund, introduced in January 2025, which acts as a powerful buyback mechanism:
- 97% of trading fees are allocated to buy back $HYPE from the open market.
- The fund has so far accumulated 28.5 million $HYPE, valued at approximately $1.3 billion.
- At current revenue rates of around $5 million per day, projections suggest Hyperliquid could repurchase the entire circulating supply within 1.5–3.4 years.
This systemic buy pressure creates a predictable demand directly tied to the platform’s activity. Unlike one-time token burns, the Assistance Fund offers a continuous, automated, and transparent feedback loop that enhances token value. If trading volumes remain robust, $HYPE could face a supply shortage scenario in the medium term.
Governance Proposals Driving Expansion
Hyperliquid’s growth is not solely reliant on tokenomics. Its governance roadmap signals an ambitious expansion into broader markets through several key proposals:
- HIP-1: Governance Listings – communities bid in $HYPE for token listings, raising the quality bar.
- HIP-2: Native Liquidity – AMM-style liquidity ensures new listings launch with deep order books.
- HIP-3: Permissionless Perpetuals – anyone staking $1M worth of $HYPE can create perpetual markets, including commodities and equities.
HIP-3 is particularly pivotal, as it positions Hyperliquid to extend beyond the crypto realm, challenging traditional finance derivatives platforms. If successfully adopted, Hyperliquid could absorb a significant share of the traditional finance market.
Where Could $HYPE Price Go Next?
The bullish outlook for $HYPE is supported by three main factors:
- Sustained Trading Volumes – Continued volumes of approximately $300 billion per month would result in steady buybacks, reducing the supply.
- Cross-Market Expansion – With HIP-3, Hyperliquid could capture demand from non-crypto derivatives, diversifying and increasing revenue streams.
- Retail-Centric Distribution – A broader community ownership base mitigates the risk of large-scale sell-offs, maintaining a lower sell pressure.
Short-Term (Next 3–6 Months)
While the market may see some consolidation following a strong rally, the buyback mechanism is expected to provide a price floor. If trading volumes remain high, $HYPE could reach new highs in the $60–$80 range.
Mid-Term (1–2 Years)
As Hyperliquid continues to absorb CEX order flow, it could achieve a double-digit market share globally. With a shrinking circulating supply, $HYPE could potentially exceed $100.
Long-Term (3–5 Years)
Should HIP-3 successfully integrate commodities and equities, Hyperliquid could become the first DeFi-native derivatives super-platform. In this scenario, $HYPE’s scarcity, driven by ongoing buybacks, could see it valued in the multi-hundred-dollar range, comparable to leading Layer 1 tokens.
Conclusion: Momentum with Structural Strength
Hyperliquid’s success is not mere hype. Its record-breaking airdrop, market-leading revenue, and innovative buyback model provide a robust foundation for long-term growth. Governance initiatives (HIP-1, HIP-2, HIP-3) ensure that the ecosystem continues to evolve while maintaining decentralization and liquidity incentives.
If trading volumes remain high, the buyback model could make $HYPE one of the most structurally bullish tokens in DeFi history. However, the risk is tied to market cycles; a downturn in derivatives trading could weaken the buy pressure engine.
For now, Hyperliquid demonstrates that DeFi can not only compete with centralized exchanges but also outperform Ethereum in revenue. The true test will be maintaining this momentum through 2026 and beyond.
Source: Cryptoticker
