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Why Hyperliquid’s Deflationary Model Could Outpace Solana and Ethereum

2025-07-25 12:32:35

Main Idea

Hyperliquid (HYPE) is gaining significant traction in the cryptocurrency market with its deflationary model, record-breaking growth, and increasing dominance in perpetual futures trading, positioning it as a strong competitor to Ethereum and Solana.

Key Points

1. Hyperliquid now controls 17% of global perpetual futures interest, with the HYPE token surging 4x since April.

2. The platform's buybacks outpace emissions, creating a deflationary trend for HYPE, with potential for 2.1 million tokens burned monthly and 25 million annually.

3. Hyperliquid's Assistance Fund holds over 27 million HYPE tokens (worth ~$1.18 billion), with 92.78% of platform revenue directed toward buybacks.

4. Ryan Watkins estimates Hyperliquid's potential market could reach $500 billion, including spot and derivatives trading and Layer-1 blockchain activity.

5. Hyperliquid has achieved record highs in open interest and market share against centralized exchanges (CEXs), with further growth expected as HyperEVM launches.

Description

Hyperliquid now controls 17% of global perpetual futures interest. HYPE token has surged 4x since April, momentum building fast. Buybacks outpace emissions, creating a deflationary trend for HYPE. In the cryptocurrency ecosystem, Hyperliquid (HYPE) has been gaining attention recently with its record-breaking growth and rising market influence. Sharing his opinion over the token, Ryan Watkins , co-founder of Syncracy Capital, shared in his podcast that Hyperliquid is quickly positioning itself as...

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