As you can tell by the title, we’re talking about Hyperliquid today, the project that needs no introduction.

Going to mainnet in June 2023, the exchange has been live for a little over a year. In that relatively short period of time, they’ve done a total volume of $253B attracting over 161K unique users.

That’s 2012 Lionel Messi Numbers, that’s 2013 Lebron James numbers, that’s 2016 Steph Curry numbers.

Hyperliquid has been on an absolute tear since its launch and doesn’t seem like slowing down anytime soon.

Granted, a lot of the activity came from the points program that they started towards the end of 2023, but that’s immaterial. Doesn’t matter how the users come, as long as they do. Once they do come, however, it’s up to the protocol to figure out a way to keep them.

While most of the other protocols running points programs may have become victims to the farm and dump after they finished their points program, Hyperliquid has been making major strides to ensure that at least a significant chunk of their user base doesn’t go anywhere.

But how so? What are they doing to ensure this?

Well, today’s agenda is just that. We’ll be diving into what’s coming next for Hyperliquid and then give you a comprehensive dive into the Hyperliquid ecosystem.

Buckle up anon; this is going to be worth your while.

What is Hyperliquid?

Hyperliquid is commonly referred to as a perp DEX simply because their perp DEX is currently the market leader.

But Hyperliquid is actually an L1.

It was initially built using Cosmos’ Tendermint, but very soon, they shifted to their very own HyperBFT consensus. This consensus mechanism is very technical, but the main takeaway from it is that it is optimised for end-to-end latency.

It’s just a fancy way of saying that they aim to minimise the time between when a transaction is created and when it is executed by as much as possible. Currently, they can do around 100K transactions per second.

Now, Hyperliquid is more synonymous with a DEX rather than an L1 because it has a unique go-to-market strategy.

Typical L1s do something like this.

They release their docs that talk about their unique consensus mechanism and shill how much faster and cheaper it is going to be than Ethereum. They then announce their fundraising and everyone gets hyped by the investors backing. They do a long testnet and then launch on mainnet.

Once on mainnet, you have a similar set of protocols that are available on a chain like Ethereum launch there. There’s activity for a week or two, and then they eventually die because all the users are just mercenary capital trying to be early to a new chain.

What Hyperliquid recognized is that trading, specifically perp trading, is arguably the product with the biggest product market fit in crypto.

We all love a bit of leveraged gambling, don’t we?

Recognizing this, the L1 was actually built around the Hyperliquid perp DEX.

Why? Because a new, highly performant L1 such as Hyperliquid can easily handle the network load of a perp DEX, especially if its the only application to begin with.

Users have demanded a good on-chain perp DEX for a very long time, so with a little bit of point incentivization, all of a sudden Hyperliquid sees a massive influx.

Now, their main job is to ensure everything works smoothly so all the users who came for the incentivization actually stay after.

I think it’s still too early to say whether all of this Hyperliquid usage will remain once they drop their main token, but the signs are looking positive.

Their idea of bringing the users with one great application and then building out the ecosystem seems to be working pretty well thus far.

They have just entered phase 2, if you will, where we are now starting to see other products get built on Hyperliquid.

This brings us to today's agenda.

We cannot guarantee that Hyperliquid will be a super success, but its unique approach seems to be working wonders thus far.

Therefore, we believe that if it does reach the heights of success that it has the potential to, the entire ecosystem is currently very undervalued.

There are ghost chain layer 1s and layer 2s valued at billions, and there are also many pre-product layer 1s valued at multiple billions. Hyperliquid is a proven, functioning layer 1 with a very popular product, so I think multiple billions is the conservative case for them.

But as always, at blocmates, we want to give you the extra alpha.

Therefore, the rest of this article will be diving into the Hyperliquid ecosystem. We will go over the different products so you can stay up to date and then decide for yourself if you want to get into this ecosystem or not.

The Hyperliquid ecosystem

Keep in mind, it’s still very early days for Hyperliquid so most of the ecosystem is still directly correlated to the perp DEX, but a more comprehensive ecosystem is likely to be built out in the future.

So let’s begin

Memecoins

Memecoins have been the best trade in 2024 by a country mile. Naturally, Hyperliquid is going to have a couple of its own.

PURR

PURR was the first memecoin on Hyperliquid.

As you can tell, the Hyperliquid team used a clever play on words by taking the second syllable of hyper to create a cat-theme token called PURR.

Those who used Hyperliquid early on and got points in season 1 were airdropped this PURR token.

The team conducted this airdrop mainly as a way to test their airdrop system for the eventual launch of the native coin which will be HYPE.

However, now that it’s the first coin launched by the team, it’s sort of considered as the de-facto form of exposure to Hyperliquid for the time being. In addition, it’s cat-themed which seems to be the meta at the moment, and since it’s from the team, the chances of rugging are very low.

It is currently hovering around $100M market cap, which seems pretty steep for a memecoin, but then again, we’re in uncharted territory with Hyperliquid, so you never know how crazy things can get.

JEFF

The founder of Hyperliquid is called Jeff Yan, so it only makes sense to make a memecoin after the founder, right?

That’s pretty much the origin of JEFF.

It’s important to note that this is just a random memecoin and has not officially been made or endorsed by the Hyperliquid team which means there’s a higher degree of risk when compared to something like PURR.

However, it’s currently around $4.1M market cap and looking good. So if memes are something that interests you, this could be a good shout.

PANDA

Panda is another memecoin on Hyperliquid.

According to their bio, they promise nothing. No marketing, no utility, nothing beyond a simple token. But in reality, they have been building some stuff around this PANDA token.

They are hosting a shogun tournament where the winner gets an HFUN badge. Beyond that, they also recently launched a TG bot, which is very impressive for a random memeocin team.

Again, DYOR and ape with caution.

There are a bunch more memes like this, but it's more of the same playing on different popular figures in the crypto world. If you like aping memecoins, then Hyperliquid has a couple for you.

Trading Bots & Interfaces

Currently, since the Hyperliquid ecosystem is still in the process of getting built out, trading bots are by far the most popular apps on Hyperliquid since the perp DEX is their main flagship product.

To make the DEX product easier to use, there is a fight to capture the trading bot market share.

HFUN

Hypurr.fun is arguably the most popular trading bot out of all.

Currently at a market cap of $16M, they offer arguably the best interface out of all the competition on there.

You get all your favourite features such as PnL tracking, trading, referral, and token launch sniping. Most new tokens often work with the HFUN team which means HFUN holders can get airdrops and also guaranteed way to snipe the token launch if they are early enough.

If you believe in Hyperliquid, this should do well too.

Rage.trade

This is not a Hyperliquid specific product but is a pretty hyped product that integrated with the Hyperlqiuid L1.

Rage is a multichain DEX perp aggregator. So it aggregates liquidity from different perp DEXs across all EVM chains and creates a unified perp trading hub. Hyperliquid being the biggest perp DEX by a country mile of course has to be integrated with the product.

HyperBet

This is not really a trading bot, but a betting platform.

Although prices on the Hyperliquid DEX will be relatively similar to other exchanges, there can be liquidity and oracle issues that cause price discrepancies. HyperBet is a simple betting platform that allows you to bet on price movements on coins on the Hyperliquid DEX.

So most of the time, it is just a way for you to bet on market movements, but in rare occasions, price discrepancies on Hyperliquid could give you an advantage.

Others

Theres a bunch of other stuff such as analytics platforms and yield strategies, so lets look at some of these platforms.

NAV Finance

NAV creates DeFi-specific structured investment products into which people can invest and earn a yield.

Their play with Hyperliquid is simple, be heavily invested in spot tokens on Hyperliquid which will give you exposure to points. Their aim is to farm as many points as possible because even with a conservative FDV of $1B, it should be very profitable.

Hypurrscan

As you can probably tell from the name, Hypurrscan is the block explorer for Hyperliquid.

So any on-chain analyst who would like to do sleuthing on Hyperliuid can go here.

Purrburn

As I already mentioned, PURR is the biggest coin on Hyperliquid, a cat-based memecoin.

Purrburn.fun is an analytics platform that allows you to track the burn rate of PURR tokens and also keeps track of all PURR-related buy/sell transactions.

Concluding Thoughts

All in all, Hyperliquid is mega-bullish.

As you can see it's still relatively early days. I mean, there is still no main native token.

The current state of the ecosystem is fairly limited, so just imagine what it can be in the near future. It is very possible that the biggest winners of the Hyperliquid ecosystem are not even out yet.

We cannot know for sure if any one of the current products has staying power over the products that will come in the future, but if any of them do, then you could be in for a jackpot.

But of course, NFA and DYOR. I'm just here to provide the info, it's up to you if you want to use it.

Other than that, stay tuned to blocmates for more such updates.