Hyperliquid, a decentralized exchange (DEX), has quickly emerged as an industry leader in the DeFi realm. It has done this through a groundbreaking model of liquidity provision and token distribution. The platform ecosystem benefits greatly from its proprietary HyperLiquidity Provider (HLP) Vault. It’s known for its top-tier annual percentage yields (APYs), well-planned token airdrops, and strong trading volumes. These factors have shot Hyperliquid right to the top of rank in all of decentralized finance.
Disrupting the AMM Model
Hyperliquid set itself apart from the rest of the pack by eschewing the classic automated market maker (AMM) model. Rather than spend time building a token, it created the HyperLiquidity Provider (HLP) Vault. This vault acts as the platform’s liquidity foundation. The HLP Vault combines liquidity from several sources, making a deeper, more efficient trading environment.
With flexibility by design integrated into the HLP Vault’s blueprint, liquidity guarantees can be dynamically adjusted according to the evolving marketplace. As a result of this adaptability, traders enjoy lesser slippage and better execution prices. The vault accounted for over 40% of trading volume, offering deep, stable liquidity. That’s an impressive feat that serves as a proof point to its value proposition in supporting trading activity on the platform.
Attractive Yields and TVL Growth
One of the main factors fueling Hyperliquid’s early growth is the eye-popping yields liquidity providers are earning. In Q2 of 2025, Hyperliquid had APYs reaching up to 17%. These astronomical yields attracted users to deposit their tokens into the HLP Vault. This influx of capital massively increased the platform’s total value locked (TVL).
The platform hit a peak at over $800 million in total value locked (TVL) in Q2 2025. That large TVL is indicative of the trust users have in the platform’s security. It moreover suggests their belief in the long-term viability of its yield-generating mechanisms. This new milestone is a testament to Hyperliquid’s increasing impact and importance in the broader DeFi ecosystem.
Strategic Token Airdrop and Market Performance
Hyperliquid has strategically airdropped tokens as part of their go-to-market to incentivize early adoption and reward community participation. Over the course of this June 2025 Hyperliquid airdropped tokens for just under 94,000 wallets. This unequal distribution deepened participation from all walks of life and ensured a passionate, engaged community, ready to do big things together along with that wide distribution.
Together, the HYPE token is deeply integrated within Hyperliquid’s economic flywheel. It’s not just that it plays a central role in the platform’s governance and incentive structures. Approximately 334 million HYPE tokens will be in circulation by mid-2025. The HYPE token supply has a hard cap, with 31% unlocked and distributed to more than 90,000 unique recipients. Hyperliquid airdropped 31% of total HYPE token supply directly to early and active users on their platform. At launch, there was around $1.2 billion of HYPE in circulation at launch prices. The median eligible user got $45k-$50k worth of tokens.
The HYPE token has been the best performing token in the whole crypto arena. HYPE’s all-time high was $45.59, and is currently trading at $36.12. Hyperliquid’s circulating market cap was $12 billion at the time. Hyperliquid's fully diluted valuation hit $36 billion. All of these figures are an indication of the market’s reception to the HYPE token and the utility it provides to the Hyperliquid ecosystem.
High Trading Volumes and Fee Generation
Hyperliquid has consistently recorded substantial trading volumes. HYPE trading volumes averaged $300 million or more traded each day. This frenetic pace of activity makes for a bustle platform – and one that’s generating huge fee revenue for the platform. Hyperliquid was consistently generating more than $5.6 million in daily fees.
The significant trading volumes and fee generation highlight the platform’s efficiency and popularity among traders. These metrics further prove the deep liquidity and optimal trading experiences made possible by the HLP Vault. The platform’s capacity to maintain this scale even in the wake of such intense activity speaks to the strength of its underlying architecture and perfectly aligned economic incentives.
