The Hyperliquid team spent $38 million to buy back their token in the first 2 days of trading. Today, the token is trading at ATH – $27.7. The team has $240M from buying tokens on the open market. The team address: https://hypurrscan.io/address/0xfefefefefefefefefefefefefefefefefefefefe
Also $27M of commissions earned by the project are in the insurance fund, with funds coming in every day.
Why are we seeing such a killer buying pressure where funds/individual large wallets are relentlessly buying up Hyperliquid despite the fact that the valuation is already approaching $10B market cap?
Maybe because the market originally valued Hyperliquid as a perpetual dex and compared its metrics to dydx, gmx? And in reality Hyperliquid should be valued as L1/L2.
And what do we see here?
– A theoretical speed of up to 200K trades per second.
– More than $1.5B-$1.8B in futures trading volume per day
– Vault (a way to place the capital of exchange users as funding for an internal market maker, yielding up to 20% per year (initially it was up to 50-80%).
And now let’s take the last SOL-killer:
1 SUI – $33.5 BILLION FDV
2 Trading volume in pairs on the dexrinner spot – $78M
3 TVL $1.8B vs. Hyperliquid’s $2.9B.
And in this case – $10B market cap at Hyperliquid isn’t that expensive yet?
Of course, it will be interesting to see the price dynamics when this endless buying pressure ends.
Hyperliquid has shown an example of a situation where large CEX are put on the skids:
– Should they dump their competitor on the exchanges? Which is eating away at your perpetrator market share?
– Or don’t list your competitor and then your customers will go to your competitor to buy their token and take their money off the exchange with them?
Hyperliquid showed that:
– 31% drop in linear without vesting can’t kill a token if you have a real product (a perp exchange that is loved and used).
– VC’s lack of tokens made them line up in the tumbler to buy.
– Hyperliquid level event happens once per cycle.
Last cycle – it was dYdX where the drop sizes per active account were over $60K-$80K at the peak.
Now we still have to wait for a new cycle of 3-4 years for the magic to happen and a Hyperliquid-like project to be created, which of course will be an underfunded surprise in the market.
