Layer-1 blockchain network Hyperliquid needs to bootstrap a robust developer community to sustain its native token’s roughly $25 billion market capitalization, asset manager VanEck said in a Jan. 6 research note.

Hyperliquid has become one of the most valuable blockchains since launching its HYPE token in a November airdrop.

Layer-1 blockchain network Hyperliquid needs to rapidly expand its developer community in order to sustain the roughly $25 billion market capitalization of its native token, asset manager VanEck said in a Jan. 6 research note.

Hyperliquid has quickly become one of the most valuable blockchains since launching its HYPE token in a November airdrop. But Hyperliquid’s nascent smart contract platform has “yet to attract much of a developer community,” according to VanEck.

“If Hyperliquid is unable to meet the growth expectations of its community, the prisoner’s dilemma facing many newly rich $HYPE holders may quickly unravel,” VanEck said.

Rapid growth, high expectations

Since launching in 2024, Hyperliquid’s flagship perpetual futures exchange has captured around 70% of the market share, surpassing rivals like GMX and Dydx. It now handles roughly $260 million in transactions per day, according to VanEck.

Hyperliquid’s growth reflects broader gains for decentralized exchanges (DEXs), which saw monthly trading volume hit all-time highs of $433 billion in December, according to VanEck.

Perpetual futures, or “perps,” are derivatives that allow traders to buy or sell an asset at a future date with no expiration.

Meanwhile, Hyperliquid’s airdrop was widely hailed as 2024's most successful token generation event.

Its HYPE token has gained more than 500% since launching on Nov. 29. After reaching highs of roughly $34 per token in December, HYPE has retraced to around $25 as of Jan. 7, according to CoinGecko.

“In just one month of trading, Hyperliquid ranks as the 13th most valuable project in crypto,” according to VanEck.

This is partly because “Hyperliquid has built a growth story founded upon becoming a general-purpose blockchain that will accommodate other applications besides its ‘hyper’ successful Perp DEX,” according to VanEck.

According to VanEck, DEXs such as Hyperliquid “tend to lack long-term competitive moats […] because most DEXes are based on open-source code and offer features that are easy to copy.”

In 2025, Hyperliquid is planning to launch an Ethereum Virtual Machine (EVM) smart contract platform, which VanEck said is critical for diversifying the L1’s revenue base and justifying HYPE’s lofty valuation.

At least half a dozen Hyperliquid-native decentralized applications (DApps) are already live on the EVM’s testnet, in some cases touting thousands of users, according to ASXN, a Web3 researcher.