Why Hyperliquid’s Deflationary Model Could Outpace Solana and Ethereum

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.