DeutschWhile the broader crypto market has gone through a phase of consolidation and uncertainty in recent weeks, a ticker is shining bright green on investors’ radar screens: Hyperliquid (HYPE). With an impressive price increase of over 20% in the last four weeks, the project demonstrates relative strength. But what’s behind the hype around HYPE? CoinPro.ch takes a look under the hood of what is probably the most exciting DeFi protocol right now.
The crypto market is often a game of correlations. If Bitcoin falls, altcoins usually follow even more sharply downwards. But every now and then, an asset emerges that decouples from this dynamic. Currently, this is Hyperliquid. It’s not just another decentralized exchange (DEX), but a fundamental restructuring of how ‘on-chain’ trading can work.
The Concept: More Than Just a DEX
To understand Hyperliquid, you first need to understand what it is not. It’s not an ordinary dApp on Ethereum or Solana, nor is it a typical Layer-2 solution that merely bundles transactions.
Hyperliquid is its own Layer-1 blockchain, specifically optimized for high-frequency trading and financial applications. The developers recognized that existing blockchains are often too slow or too expensive for an order book experience, as known from Binance or Coinbase.
The Technical Innovation: CLOB instead of AMM
Most DEXs (like Uniswap) use so-called ‘Automated Market Makers’ (AMMs). These are revolutionary, but often inefficient for professional traders (slippage, impermanent loss).
Hyperliquid, instead, relies on a Central Limit Order Book (CLOB) that runs entirely on-chain. This means:
- Every order, every cancellation, and every trade is processed on the blockchain.
- The network currently handles up to 200,000 transactions per second (TPS) with latency that can compete with centralized exchanges.
The goal is ambitious: to create a decentralized infrastructure that is as powerful as a centralized exchange (CEX), but without the risks of an intermediary (keyword: FTX debacle).
The Minds Behind It: Competence Instead of Pure Marketing
The team behind Hyperliquid operates, as is often the case in the crypto scene, partly pseudonymously, but is known for its technical excellence. The project was founded by Jeff and Iliens, both of whom previously studied at Harvard University.
Jeff started his career in High-Frequency Trading (HFT) at HRT (Hudson River Trading) and Citadel – two of the most renowned firms in traditional finance. This DNA is evident in the product: Hyperliquid was built by traders for traders. From day one, the focus was not on marketing buzzwords, but on an extremely high-performance codebase (written in Rust and C++) that can withstand the stress of a volatile market.
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Market Analysis: Why HYPE is Rising Now (+25%)
In the last four weeks (as of February 2026), the HYPE token has gained over 25%, while many top 100 coins have lost value or at best traded sideways. Why?
- Real Yield: Hyperliquid is one of the few chains that generate massive fees through real trading volume. The protocol generates profit, and that attracts investors looking for fundamentally strong assets.
- Decoupling from the market: Investors are looking for ‘safe havens’ within crypto. Since Hyperliquid often has a volume that competes with large centralized exchanges, it is perceived as an infrastructure play that is used independently of Bitcoin’s price.
- The ‘HyperEVM’ Narrative: The announcement and rollout of EVM compatibility (more on that later) have sparked imagination. Developers can now more easily build apps on Hyperliquid.
- Community & Airdrop Effect: After one of the fairest and most lucrative airdrops in history, an extremely loyal community has formed, which has not immediately sold (‘dumped’) their tokens, but rather staked them.
HYPE Token Use Cases: What is the currency used for?
The HYPE token is the heart of the ecosystem and is not just for speculation. Its functions are deeply embedded in the Proof-of-Stake (PoS) consensus of the L1 chain:
- Staking & Security: To secure the network, validators must stake HYPE. Token holders can delegate their HYPE to these validators and receive rewards (staking rewards) for it. This reduces the circulating supply and supports the price.
- Gas Fees (Transaction Fees): Although transactions on Hyperliquid are extremely cheap (often fractions of a cent), fees for certain operations are paid in HYPE.
- Governance: HYPE holders determine the future of the protocol. Since Hyperliquid is very community-driven, governance here has real weight (e.g., in listing new assets or technical upgrades).
- Launchpad Access: Future projects launching on the Hyperliquid chain (spot tokens, meme coins, etc.) will often use HYPE as the base currency for liquidity pools.
Collaborations and Ecosystem
Hyperliquid is known for pursuing a ‘walled garden’ approach – they build many things themselves (‘Vertical Integration’). Nevertheless, there are important interfaces and collaborations that are crucial for success:
1. The Arbitrum Bridge
Hyperliquid does not exist in a vacuum. The most important technical ‘cooperation’ is the bridge to Arbitrum. Since most users hold their USDC on Arbitrum, the seamless and fast bridge between Arbitrum and Hyperliquid is the lifeblood for liquidity.
2. Market Makers and Institutions
While there are no classic ‘partnership logos’ on the website, large crypto market makers (like Wintermute or Jump Trading affiliates) are working in the background to provide liquidity in the order book. Without this institutional connection, the massive trading volume would not be possible.
3. Wallet Integrations
Collaboration with wallet providers like Rabby or OKX Wallet was essential to improve the UX (User Experience). Users do not have to manually make complicated network settings; the wallets automatically recognize the Hyperliquid L1.
4. Community Projects (Hypervisors)
The first projects are emerging on Hyperliquid, such as Hypervisors (vaults for automated market making). These ‘cooperations’ arise organically from the community and strengthen the ecosystem from within.
Outlook: Where is HYPE headed?
The price development of recent weeks is a strong signal, but what does the medium to long-term future look like?
The Bull Case (Optimistic): Should the crypto market enter a new phase of euphoria, Hyperliquid is perfectly positioned. If users migrate from centralized exchanges (due to regulation or fear of insolvency), Hyperliquid is the first port of call for high-performance trading. Analysts see HYPE as a top-20 coin in such a scenario, as the valuation still appears attractive compared to ‘dead’ chains without users.
The Technological Vision (HyperEVM): The most important catalyst is the introduction of EVM compatibility on the Hyperliquid L1. This means that developers who have written smart contracts for Ethereum can now easily port them to Hyperliquid. The goal: Hyperliquid should not just be an exchange, but a General Purpose Blockchain for all financial applications – from lending to stablecoins to prediction markets.
The Risk: As with any crypto project, there are risks. Should a technical error occur in the consensus algorithm or if the regulation of DeFi protocols worldwide is massively tightened, this could weigh on the price. In addition, the competition (e.g., from Berachain or Monad) should not be underestimated.
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Conclusion
Hyperliquid (HYPE) is currently the prime example that quality prevails. While memecoins come and go, Hyperliquid is building infrastructure for the future of finance. The price increase of over 25% in a weak market environment is no coincidence, but the result of real usage (‘Product-Market-Fit’). For Swiss investors who are willing to venture into the world of DeFi and don’t just want to hold Bitcoin, HYPE is definitely worth a closer look – be it as an investment or as a platform for trading.
| Key Figure | Value / Description |
|---|---|
| Type | Layer-1 Blockchain (Specialized in High-Frequency Trading) |
| Consensus Mechanism | HyperBFT (Optimized Proof-of-Stake) |
| Throughput (Performance) | Up to 200,000 orders per second |
| Latency (End-to-End) | < 0.2 seconds (CEX-level) |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are volatile. Always do your own research (DYOR).
