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In the ever-shifting crypto landscape, Hyperliquid has emerged as a force to be reckoned with, storming the market in 2025 with its decentralized perpetual futures exchange (DEX). By rejecting venture capital (VC) funding, executing the largest airdrop in crypto history, and positioning itself as a direct competitor to centralized exchanges (CEXs) like Binance, Hyperliquid is not only echoing Solana’s early breakout but also carving a pivotal role in the Internet Capital Markets narrative. With its $HYPE token hitting a $26 billion fully diluted valuation and analysts eyeing a 240% rally, Hyperliquid is proving that community-driven projects can challenge the old guard while redefining global finance. Here’s how it’s shaking up the industry and what lies ahead.
A No-VC Revolution: Defying the Status Quo
Hyperliquid’s journey began with a radical stance: no VC funding, ever. Founder Jeff Yan has been vocal about his disdain for VC-heavy tokenomics, calling them a “stain” on crypto for prioritizing institutional profits over community value. Unlike most projects that allocate 50% or more of their supply to VCs—only to see them dump on retail—Hyperliquid bootstrapped its growth entirely through community support. Since launching in 2023, the platform has processed over $10 billion in total trading volume by November 2023, all without external capital, cementing its reputation as a “Crypto Native” project.
This approach has struck a chord in a market weary of VC-driven sell-offs. Recent airdrops like Scroll and Manta, with community allocations as low as 5%, saw massive fund outflows as VCs cashed out. Hyperliquid’s rejection of this model has made it a beacon of fairness, aligning with the ethos of decentralization and earning it a fiercely loyal user base. By focusing on a high-performance product—a layer-1 blockchain with an on-chain orderbook DEX—Hyperliquid has drawn traders seeking a transparent, community-first alternative to CEXs.
The Largest Airdrop in Crypto History
Hyperliquid’s defining moment came on November 29, 2024, with the largest airdrop in crypto history. The platform distributed 31% of its $HYPE token supply—310 million tokens—to 94,000 users, valued at $1.2 billion at launch. The airdrop’s value skyrocketed to $7.5 billion by early 2025 as $HYPE surged 270% from $3.90 to $9.74 within 48 hours. Some users reported six- and seven-figure payouts, with X posts buzzing about newfound crypto millionaires. Unlike VC-heavy launches, Hyperliquid’s airdrop excluded private investors, minimizing selling pressure and rewarding early adopters based on trading activity and participation in Hyperliquid Liquidity Provider (HLP) vaults, which offered 25% annualized returns.
The airdrop wasn’t just a one-off. Hyperliquid allocated an additional 38.88% of its supply for future community rewards, ensuring ongoing engagement. This structure has fueled $HYPE’s meteoric rise, with its $26 billion valuation reflecting the market’s belief in Hyperliquid’s long-term potential. By putting tokens directly into the hands of users, Hyperliquid has created a grassroots movement, positioning itself as a key player in the Internet Capital Markets narrative—where decentralized platforms empower communities to fund and trade assets without intermediaries.
A CEX Competitor Like No Other
Hyperliquid isn’t just a DEX—it’s a direct threat to centralized exchanges like Binance, Coinbase, and Kraken. Dubbed the “on-chain Binance” by traders on X, Hyperliquid offers a seamless trading experience with gas-free transactions, deep liquidity, and a user-friendly interface that rivals CEXs. Its on-chain orderbook, powered by the Hyperliquid L1 and HyperBFT consensus protocol, delivers 100,000 TPS and 200ms block times, outpacing many centralized platforms. In 2025, Hyperliquid captured a 70% share of the perp DEX market, up from 10% a year ago, with $1 billion in TVL achieved without incentives or forced liquidity schemes.
What sets Hyperliquid apart is its ability to offer CEX-like functionality without the pitfalls of centralization. Unlike Binance, which has faced regulatory scrutiny and user fund freezes, Hyperliquid operates fully on-chain, giving users control over their assets. Its $HYPE token, used for staking and paying fees on HyperEVM (an Ethereum-compatible layer), redistributes 97% of trading revenue to holders, creating a value accrual mechanism that CEXs can’t match. As centralized exchanges grapple with compliance costs and trust issues—like Coinbase’s recent $400 million data breach—Hyperliquid’s decentralized model offers a compelling alternative, making it a formidable CEX competitor in the evolving Internet Capital Markets landscape.
Tying Into the Internet Capital Markets Narrative
Hyperliquid fits seamlessly into the Internet Capital Markets narrative, a growing trend where decentralized platforms democratize access to financial markets. Much like Believe.app’s “Tokenized Kickstarter” model, which allows creators to raise funds through Solana-based tokens, Hyperliquid empowers users to trade and invest in a borderless, community-driven ecosystem. Its no-VC stance and massive airdrop mirror the ethos of Internet Capital Markets: putting power in the hands of individuals, not institutions. By enabling traders to access perpetual futures and DeFi products without intermediaries, Hyperliquid is building a new kind of capital market—one that’s open, transparent, and always-on.
This narrative is gaining traction in 2025, with platforms like Kraken launching 24/7 tokenized U.S. stocks on Solana and VanEck introducing tokenized treasuries. Hyperliquid’s role as a CEX competitor amplifies its impact, offering a decentralized alternative for traders who want to escape the walled gardens of traditional finance. As the Internet Capital Markets movement grows, Hyperliquid’s community-first approach positions it as a leader in this new financial paradigm, where global access and user empowerment reign supreme.
Echoes of Solana’s Early Days
Hyperliquid’s rise draws striking parallels to Solana’s breakout in 2021. Solana, a high-performance layer-1 blockchain, surged 291% from $4.90 to $19 in under two months by focusing on real utility—meme coin trading and DeFi—backed by 50,000 TPS and low fees. Hyperliquid is following a similar path. After a 270% rally from April 2025 lows of $10, $HYPE is targeting a 240% surge to $128, according to analysts like Ansem, who highlight its structural similarities to Solana’s early run. Both projects share a focus on speed and scalability, with Hyperliquid’s 100,000 TPS and Solana-like trading experience making it a go-to platform for perp traders.
Like Solana’s early partnership with FTX, Hyperliquid is building a high-performance trading ecosystem—but fully on-chain. Its dominance in the perp DEX market mirrors Solana’s DeFi growth, and its organic traction (without institutional backing) echoes Solana’s community-driven rise. However, Hyperliquid faces challenges Solana didn’t: its 16 validators raise centralization concerns, and it lacks Solana’s mature developer ecosystem. Still, Hyperliquid’s potential to spawn its own DeFi giants—like Solana’s Jito (liquid staking) or Kamino (lending)—is high, especially as HyperEVM launches and attracts new projects.
Hyperliquid’s Potential: A DeFi Titan in the Making?
With a $26 billion valuation, $HYPE is already a top-tier token, but its upside remains significant. Analysts see it benefiting from a 2025 market rally, fueled by pro-crypto policies under the Trump administration, including a potential Bitcoin strategic reserve. Hyperliquid’s role as a CEX competitor and its alignment with Internet Capital Markets make it a prime candidate to capture liquidity in the next bull run. If HyperEVM takes off, it could mirror Solana’s ecosystem growth, spawning meme coins, AI agents, and lending protocols that drive further adoption.
Challenges remain—centralization risks and competition from established layer-1s like Solana could slow its ascent. But Hyperliquid’s no-VC model, massive airdrop, and trader-centric design give it a unique edge. As a CEX killer and a cornerstone of Internet Capital Markets, Hyperliquid isn’t just following Solana’s path—it’s paving its own, with the potential to become a DeFi titan that reshapes how the world trades and invests.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
