Hyperliquid(HYPE) is a high-performance perpetual DEX built on its own custom Layer 1 blockchain, designed to deliver lightning-fast, gas-free trading with fully on-chain order execution.
Unlike traditional DEXs built on Ethereum or Layer 2 networks, Hyperliquid runs on its own purpose-built blockchain, engineered from the ground up to optimize trading speed, scalability, and user experience. With zero gas fees, native on-chain matching, and a vibrant trading community, Hyperliquid is emerging as one of the most advanced DeFi platforms in the perpetuals space. The project recently drew major attention following the announcement of a $1 billion HYPE token airdrop, sparking comparisons to breakout moments like Solana’s rise.
In this article, we’ll cover what Hyperliquid is, how it works, key features of the HYPE token, and why many consider it the next major contender in on-chain derivatives trading.
What Is Hyperliquid (HYPE)?
Source: Hyperliquid Foundation
Hyperliquid is a high-performance decentralized exchange (DEX) built for perpetual futures trading. It runs on its own Layer 1 blockchain, designed from scratch to support a fully on-chain financial system. Unlike most DEXs that rely on Layer 2s or general-purpose chains, Hyperliquid is optimized at the base layer for speed, transparency, and scalability.
It features a fully on-chain order book, real-time execution, and gas-free trading in one seamless system. By combining liquidity, trading tools, and user apps on its own chain, Hyperliquid delivers centralized exchange-level performance in a decentralized, user-controlled environment.
Key Features of Hyperliquid
• Custom Layer 1 Blockchain: Built from scratch using the HyperBFT consensus, tailored for high-speed, on-chain trading
• Fully On-Chain Order Book: All trades, orders, and liquidations are executed transparently with one-block finality
• High Leverage Trading: Offers up to 50x leverage across more than 130 supported assets
• One-Click Execution: Streamlined trading experience without repeated wallet approvals
Why Is the Hyperliquid DEX Gaining Traction in 2025?
Top DEX Chains by Volume
Hyperliquid’s recent surge in popularity is driven by explosive growth in trading volume, viral whale activity, and strong on-chain fundamentals. In May 2025, it officially became one of the top six DEX chains by daily volume, reaching over $501 million in a single day and surpassing competitors like Sui, Tron, and Avalanche.
That momentum extended beyond daily activity. Hyperliquid also ranked sixth in total crypto fee revenue for the week, bringing in $21.6 million and outperforming platforms such as Lido, Jito, and Tron. Its all-time trading volume has surpassed $1.5 trillion, a milestone that reflects both rapid adoption and strong user retention.
Source: DefiLlama
No.1 Perpetual DEX by Market Share
As of June 2025, Hyperliquid commands over 73% of the on-chain perpetuals market, making it the leading decentralized venue for perpetual futures trading. This dominance is driven by its custom Layer 1 architecture, built specifically for high-performance trading.
Source: Defillama
Growth Momentum Fueled by Whale James Wynn Trading Activity
Hyperliquid’s explosive growth was fueled in part by one crypto whale : James Wynn. Known for his massive, leveraged positions, Wynn drew widespread attention with bold moves that quickly went viral. Screenshots of his $3 million long trades circulated across social media, helping bring a wave of new users to the platform.
Within a week, Hyperliquid generated over $55 million in trading fees. Wynn’s activity wasn’t just large, it signaled confidence in the platform’s speed and execution. His presence gave many traders the push to explore Hyperliquid for the first time.
Source: DefiLlama
This surge was reflected in token performance. HYPE jumped 33% in 7 days and 115% in 30 days. Hyperliquid’s market cap crossed $12.7 billion, making some observers draw parallels to Solana’s explosive rise. It even outpaced older competitors like dYdX despite being a newer entrant.
Source: BingX
Following a series of actions by James Waynn and the hype, Hyperliquid's native token HYPE reached a new all-time high (ATH) on June 11, 2025, reaching $43. The token's performance is driven by Hyperliquid's buyback mechanism, where 97% of trading fees purchase HYPE tokens through the "Assistance Fund," accumulating over $1 billion worth. This coincided with explosive derivatives activity, as HYPE futures Open Interest surged 34% in June to $1.89 billion, demonstrating unprecedented market interest and sustained momentum.
This is not just market noise. The numbers reflect a platform with real product-market fit: a gasless, high-speed perpetual DEX built for performance and community. With no venture capital, a fully on-chain architecture, and a user-owned token model, Hyperliquid is quickly positioning itself as one of the most credible projects in DeFi today.
How Does Hyperliquid Perpetual DEX Work, and What Makes It Different?
Source: Hyperliquid Foundation
Hyperliquid is a perpetual DEX built on its own custom blockchain, designed to deliver the speed and efficiency of centralized exchanges while keeping everything fully transparent and on-chain. Unlike most decentralized platforms that rely on general-purpose blockchains, Hyperliquid was developed specifically for real-time trading.
1. Built for High-Speed Trading: Hyperliquid’s blockchain is engineered for performance, capable of processing over 200,000 orders per second with near-instant trade confirmation. This ensures smooth execution even during periods of high volatility.
2. Fully On-Chain Order Book: Instead of using automated market makers (AMM), Hyperliquid runs a fully on-chain order book for tighter spreads, accurate pricing, and full transparency. Trades incur no gas fees, only low maker fees of 0.01% and taker fees of 0.035%. The platform supports over 130 perpetual markets, including niche and early-stage tokens.
3. Seamless Trading Experience: Users can trade with one click using a wallet or email login. The platform supports up to 50x leverage, both cross- and isolated-margin, and advanced order types like limit, TWAP, and scale.
4. Transparent and Community-Owned: Trading is non-custodial with no KYC. Fees go back to users through vaults and the HYPE ecosystem. With no VC funding, Hyperliquid stays aligned with its community from day one.
Instead of sending fees to investors or a central entity, Hyperliquid redistributes value to users through vaults and the HYPE ecosystem. With no venture capital funding, the platform remains fully aligned with its community.
What Is HYPE Token, and How Does It Work?
HYPE is the native token powering the Hyperliquid ecosystem. It serves multiple functions, including governance, staking, and fee payment. Token holders can vote on key protocol decisions and stake their HYPE to earn up to 55% annual yield. Additionally, active traders use HYPE to pay platform fees and gain volume-based trading benefits, reinforcing its utility within the exchange.
HYPE has a fixed maximum supply of one billion tokens, with a significant portion airdropped to early users and reserves allocated for future rewards. Instead of routing platform fees to insiders, Hyperliquid reinvests value back into its community through staking incentives, trading rewards, and periodic token burns—over 110,000 HYPE tokens have already been burned. Contributor tokens unlock gradually, helping align the long-term interests of the core team with those of the broader community.
What Is the HYPE Airdrop, and Why Does It Matter?
The launch of the HYPE token marked a turning point not just for Hyperliquid but for token distribution strategies across the DeFi space. It wasn’t just big; it was one of the largest and most community-driven airdrops in crypto history.
Source: CoinGecko
$1.6 Billion in Total, 7th Largest Airdrop in DeFi History
In December 2024, Hyperliquid distributed 310 million HYPE tokens, or 31% of its total supply, to over 94,000 eligible users. At launch, HYPE was priced at $3.90, valuing the airdrop at over $1.6 billion. Within 12 hours, the token jumped to $6.16 and later peaked at $14.99. This performance showed real market belief in Hyperliquid’s design and long-term vision. This also makes HYPE the 7th largest crypto airdrops in history.
No Tokens for VCs or Insiders, Only for Users
What made this airdrop stand out was its full commitment to the community. There were no allocations for venture capital firms, market makers, or insiders. No lockups or special deals. Every token went to users who had engaged with the platform.
Community-Owned from the Start
The impact of the Hyperliquid airdrop went far beyond price:
• Community Formation: Nearly 100,000 users became direct stakeholders.
• Liquidity Bootstrapping: Tokens landed with real users, not private investors.
• Decentralized Ownership: Broad distribution kept control of the community.
• Ecosystem Signal: The success showed that user-first launches can outperform VC-backed models in traction and trust.
How to Buy Hyperliquid (HYPE) on BingX
If you’re looking to add HYPE, the native token of Hyperliquid, to your portfolio, BingX makes the process simple and accessible. With a beginner-friendly interface, multiple funding options, and robust trading features, BingX is a reliable platform for acquiring and managing HYPE.
Here’s how to get started in five straightforward steps:
Step 1: Create a BingX Account Sign up on BingX with your email and set a secure password. It only takes a few minutes.
Step 2: Secure Your Profile Verify your email, set up two-factor authentication, and complete KYC if needed for full access.
Step 3: Add Funds Deposit USDT or other supported crypto. You can also buy crypto directly on BingX with a bank card or local payment method.
Step 4: Buy HYPE Go to the spot market, search for HYPE/USDT, and place a market or limit order using your funds.
Step 5: Hold or Trade After buying, you can hold HYPE on BingX or use trading tools available on the platform.
Store HYPE Securely on BingX or in Self-Custody
After purchasing HYPE, you can hold it directly on BingX for quick access to trading tools, portfolio tracking, and advanced features. BingX uses a combination of cold and hot wallet systems, third-party audits, and full Proof of Reserves to safeguard your holdings with institutional-grade security.
If you prefer managing your assets independently, you can transfer HYPE to a self-custody wallet that supports EVM-based tokens. Since HYPE is issued on the Hyperliquid blockchain with EVM compatibility, wallets like MetaMask, Rabby, and Trust Wallet are suitable options. Always double-check the token contract and ensure you are sending to the correct chain. For long-term security, consider using a hardware wallet like Ledger or Trezor and always back up your recovery phrase in a secure, offline location.
Final Thoughts
Hyperliquid is quickly becoming one of the most innovative platforms in decentralized finance. With its high-speed trading engine, fully on-chain order book, and gas-free experience, it redefines what users can expect from a DEX. But beyond raw performance, its real edge lies in a community-first approach.
The launch of the HYPE token was more than just a distribution. With no private investors or insider allocations, and one of the largest airdrops in DeFi history, Hyperliquid built a foundation rooted in user ownership. That same ethos drives the platform today, with HYPE supporting governance, rewards, and a value system designed around its community.
As crypto space evolves, Hyperliquid offers a clear example of what next-generation finance can look like. For traders, builders, and curious newcomers alike, it’s a platform built not just for growth, but for participation.