Hyperliquid: Building the Future of Finance, Layer by Layer

Hyperliquid is making waves by innovating at both the infrastructure and application layers of decentralized finance. Can it become the 'digital asset financial infrastructure'?

Hyperliquid: Building the Future of Finance, Layer by Layer

Hyperliquid is not just another on-chain trading protocol; it's steadily evolving into a mainstream contender for "digital asset financial infrastructure." Let's dive into how Hyperliquid is innovating at both the infrastructure and application layers, and what it means for the future of finance.

Builder Code: The Engine of Ecosystem Expansion

Hyperliquid's Builder Code allows developers to charge fees on filled orders, creating a revenue-generating engine for the open trading ecosystem. Think of it as a way for apps built on Hyperliquid to monetize transaction volume. Currently, the maximum fee is 0.1% for perpetual contracts and 1% for spot trading. While that spot fee might sound high, it could become the norm as more assets launch on Hyperliquid. We are already seeing Builder Code revenue approaching $10 million.

Who's Leading the Charge?

Currently, @pvp_dot_trade is leading the way with around $7.2 million in revenue generated through Builder Code. But more than 22 new developers are jumping in, including @okto_web3, which could see significant growth due to its broader reach.

Hyperliquid: More Than Just a DEX

Hyperliquid is positioning itself as a trading infrastructure. Platforms can plug into Hyperliquid's Builder Code instead of building their own markets. This means permissionless listings through Hyperliquid's spot deployment and upcoming HIP-3 proposals, allowing platforms to focus on building the best user experience and capturing fees, similar to Axiom and PvP Trade.

The Robinhood Possibility

Imagine if Robinhood integrated Hyperliquid's infrastructure. By investing a relatively small amount in HYPE, Robinhood could deploy its own marketplace on Hyperliquid and capture fees through the Builder Code. This move could save Robinhood months or even years of development time and millions of dollars in technology costs.

HYPE Token Valuation: A Deep Dive

The HYPE token is the core value carrier of the Hyperliquid ecosystem. By comparing Hyperliquid's fund-backed buybacks to those of traditional public companies, we can get a sense of its value. Using payment processing companies like Visa and Mastercard as a reference, one analysis suggests an implied valuation of $25.9 billion for HYPE.

Why This Valuation is Conservative

This valuation focuses on a single dimension (buybacks) and ignores the value of HYPE as a Layer-1 native token, its role in governance, and future staking rewards. It's also based on historical data and uses the average valuation multiple of the payment industry to avoid overvaluation.

Hyperliquid: A Rising Star in Crypto

Hyperliquid is standing out in the growing perpetual space. It runs on its own custom blockchain, giving it full control over speed and efficiency. With daily trading volume often exceeding $500 million, Hyperliquid is proving its ability to handle big numbers and offer a user-friendly experience.

So, is Hyperliquid the next big thing in crypto? Only time will tell. But with its innovative approach to infrastructure and application layers, it's definitely one to watch. Who knows, maybe we'll all be trading on Hyperliquid-powered platforms sooner than we think. And hey, if you happen to stumble upon some HYPE along the way, don't say I didn't warn ya!