Hyperliquid

Hyperliquid is a layer-one blockchain that provides decentralized futures and spot exchange services directly at the protocol level. HYPE is the network's native coin and entered the market at the end of 2024 through a genesis distribution to the community.

The network runs on a consensus algorithm called HyperBFT and consists of two main components: HyperCore, where order book, matching and liquidation operations are carried out entirely on-chain, and HyperEVM, where smart contracts compatible with Ethereum tooling run. HYPE is used to pay transaction fees on HyperEVM, to secure the network by being staked with validators and for trading fee discounts. The bulk of the fees generated on the exchange is directed, through a mechanism called the Assistance Fund, toward buying back HYPE on the market. Developers who stake a sufficient amount of HYPE can set up their own futures markets.

The HYPE price is linked to trading volume and fee income on the exchange, the pace of buybacks, unlocks of the team and community allocations, liquidations of large leveraged positions and regulation of decentralized derivatives markets. The Hyperliquid page on Lzzo.com shows the HYPE/USDT quote on Binance converted into dollars at the Coinbase Exchange USDT/USD rate; the chart is based on this series.