Hyperliquid: The Future of Perpetual DEX in Market Trends
Key Takeaways
- Hyperliquid employs an aggressive token buyback model where 97% of its fees are used to repurchase its token, HYPE.
- The platform has shown remarkable growth, with daily trading volumes reaching billions of dollars and significant annual revenue.
- HyperEVM enhances the ecosystem by implementing gas fees paid in HYPE, introducing an additional deflationary mechanism.
- Market scenarios suggest potential HYPE price ranges from $45–180, depending on the market conditions.
Introduction to Hyperliquid
As the decentralized exchange (DEX) landscape evolves, Hyperliquid has carved out a unique niche by focusing on perpetual contracts. This focus, combined with an aggressive buyback model, presents a compelling argument for its future growth potential. The crux of Hyperliquid’s strategy lies in its ability to leverage trading fees for token buybacks, offering investors both a deflationary mechanism and potential upside in market share.
An Overview of Hyperliquid’s Mechanics
Hyperliquid’s approach is straightforward yet revolutionary. The exchange channels 97% of its trading fees into repurchasing its token, HYPE, on the open market. This model creates a persistent demand for the token, aligning stakeholders’ interests with the platform’s growth. Additionally, on the HyperEVM—a layer integrated with Hyperliquid—gas fees are also paid in HYPE, leading to further supply reduction as these tokens are periodically burned.
Daily Operations and Revenue
The platform, as of late 2025, boasts a daily trading volume of approximately $80 billion, generating annual revenues between $12 to $13 billion. With these impressive metrics, Hyperliquid has established itself as a significant player in the DEX market. The platform’s market capitalization stands at roughly $100 billion, with a diluted valuation estimated at $380 billion.
Strategic Use of Fees: The Heart of Hyperliquid
At the core of Hyperliquid’s strategy is its fee utilization model. By directing 97% of its fees toward HYPE buybacks, the platform effectively creates continuous buying pressure. This aspect of its design is crucial, as it not only incentivizes existing investors but also attracts new participants looking for growth opportunities in the decentralized finance (DeFi) space.
The Role of HyperEVM
HyperEVM represents an expansion of Hyperliquid’s ecosystem. It demands gas fees in HYPE, further cementing the token’s use case within the platform. This EVM layer not only facilitates the execution of smart contracts but also ensures that a portion of the HYPE tokens used are destroyed, enhancing the deflationary nature of the tokenomics.
Market Scenarios and Projections
Hyperliquid’s future is closely tied to its market share and the overall growth of the perpetual DEX sector. Here are the potential scenarios:
Bear Market Scenario
In a conservative environment where market expansion is limited, Hyperliquid maintaining its current market share suggests a HYPE price between $45 to $50. This assumes the total DEX trading volume increases by 1.5 times the current size.
Baseline Scenario
Should the ecosystem’s trading volume double, with Hyperliquid’s market share improving to approximately 30%, the HYPE token is projected to reach a price point between $80 to $90.
Bull Market Scenario
In a bullish context, where trading volumes triple and Hyperliquid secures 40% of the market share, HYPE could appreciate significantly, ranging from $160 to $180. These estimates are contingent upon maintaining the current buyback model and market valuation metrics.
The Investment Proposition
What makes Hyperliquid particularly intriguing is its transparent and aggressive approach to token economics. The tangible, visible cash flow—where the platform annually channels over $13 billion into HYPE repurchasing—suggests a robust economic model. This framework not only supports price appreciation but also adds an element of predictability to long-term valuations.
The Appeal of Hyperliquid
Hyperliquid’s core appeal lies in two main areas: its perpetual DEX market dominance and the strategic value of HyperEVM. The latter brings increased utility to the token, potentially driving demand through new applications and initiatives. The combination of these factors makes Hyperliquid a noteworthy entity within the decentralized finance landscape.
Conclusion
Hyperliquid exemplifies a strategic blend of innovation and traditional market mechanics. Its focus on continual HYPE repurchase and deflationary models enhances its attractiveness as a growth investment. While the crypto markets are inherently volatile, Hyperliquid’s operational model and strategic initiatives provide a foundational stability that could yield significant long-term gains for investors.
FAQ Section
What is Hyperliquid’s primary business model?
Hyperliquid operates as a decentralized exchange specializing in perpetual contracts. It utilizes trading fees to repurchase its HYPE token, creating a deflationary effect.
How does HyperEVM contribute to the ecosystem?
HyperEVM serves as an execution layer that requires gas fees in HYPE, which are partially burned. This adds an additional deflationary pathway and utility for the HYPE token.
What are the potential price projections for HYPE?
Depending on market conditions, HYPE is projected to range from $45 to $180. Key factors include trading volume growth and market share.
Why is Hyperliquid’s buyback strategy significant?
The buyback strategy redirects 97% of trading fees towards token repurchase, ensuring constant demand for HYPE, potentially supporting price increases.
How does Hyperliquid stand out in the DEX market?
Hyperliquid differentiates itself through its aggressive fee utilization for buybacks and the integration of HyperEVM, which enhances token utility and ecosystem robustness.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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