Hyperliquid, a layer-1 blockchain, needs to cultivate a strong developer community to maintain its HYPE token’s $25 billion market cap, according to asset manager VanEck. Launched in November 2024, Hyperliquid quickly became a significant player with its perpetual futures exchange, capturing about 70% of the market share and handling approximately $260 million in transactions daily. Despite its rapid growth and a 500% increase in the HYPE token since launch, VanEck warns that without fulfilling community growth expectations, the token's value could plummet, noting a metaphorical 'prisoner’s dilemma' for affluent holders. The airdrop of HYPE was seen as a major success, and while Hyperliquid aims to become a general-purpose blockchain, it currently lacks a substantial developer ecosystem, which is crucial for its longevity and stability in the highly competitive DEX landscape.

Source 🔗