Arbitrum-based decentralized exchange Hyperliquid has continued its ascent in the DeFi landscape, surpassing dYdX in total value locked (TVL). According to DefiLlama, Hyperliquid's TVL now stands at $530 million, outpacing dYdX's $484 million.
This achievement marks a new milestone for Hyperliquid, placing it second among derivatives platforms, just behind GMX with $542 million. Solana-based Jupiter follows closely behind with $415 million, and Drift with $365 million rounds out the top 5 in TVL rankings.
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Source: DefiLlama
Hyperliquid's remarkable performance in 2024 has seen a significant climb in its TVL rankings. Merely six weeks ago, it held the 8th position. The recent surge in Hyperliquid's TVL is attributed to its new points program introduced on May 29, attracting users to the platform in droves.
The rollout of the new points program commenced on May 29, with the first snapshot for eligible recipients concluding today. As part of the program, the team plans to distribute 700,000 points weekly over four months.
Additionally, an extra 2 million points per week will be awarded for activity during the period from May 1 to May 28. The community's response to this initiative has been varied. While some criticized Hyperliquid's decision to extend the incentives program, delaying the token launch and airdrop, traders have nonetheless been flocking to the platform.
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A Shift from DEX to Layer 1 Platform
Steven, a founding member of Yunt Capital, a venture capital firm that has supported prominent crypto projects like Zerion, has provided insights into Hyperliquid's recent developments. According to Steven, Hyperliquid has already distributed approximately 51 million points across four periods. He notes that the project is focused on rewarding its early adopters and is determined to transcend its reputation solely as a decentralized exchange (DEX) to become a Layer 1 platform.
Steven highlighted a shift in the project's messaging, indicating its intention to emphasize Hyperliquid's status as a Layer 1 solution rather than just a perpetual DEX. This suggests that the team aims to allocate a significant portion of the points to features beyond perpetual swaps. Additionally, Steven pointed out that Hyperliquid has shown favoritism toward PURR holders.
He noted that in April, the team heavily rewarded PURR holders with points, implying a potential continuation of this strategy. As a result, PURR, Hyperliquid's first spot token, experienced a notable surge of 23% in value on the day of Steven's comments.
Despite potential disappointment among users anticipating the token generation event (TGE) for Hyperliquid tokens, the project team seems committed to achieving specific milestones before proceeding with the token launch.
Chameleon Jeff, the pseudonymous leader of Hyperliquid, outlined three key objectives in a post on X on May 29. These goals include deploying the native Ethereum Virtual Machine (EVM), seamlessly integrating the EVM with existing native components, and achieving full decentralization of the network. However, specific details regarding the decentralization process were not disclosed.
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While some may view the decision to postpone the token launch in favor of another round of points as a setback, Steven believes it could ultimately benefit the project. Steven suggests that by demonstrating Hyperliquid's value as a Layer 1 solution first, the token could command a higher price during the TGE. He concludes that achieving a higher valuation is ultimately desirable for all stakeholders involved.
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