The newly launched token of Hyperliquid, a decentralized perpetual trading platform and Layer 1 chain, has surged over 11% since its launch or token generation event earlier today, with a current price of $4.2.
This price movement has driven the fully diluted valuation to about $4.2 billion. Currently, over 333 million tokens are in circulation out of a total supply of 1 billion, giving the token a market capitalization of around $1.4 billion.
The total supply of the HYPE token will be capped at 1 billion tokens. After the token generation, 31.0% (or 310 million) of fully unlocked tokens were distributed to eligible community users as an airdrop.
The token’s launch has been met with significant market activity. Trading volume surpassed $250 million over the past 24 hours, indicating strong demand.
Hyperliquid airdrop leads to platform users making significant gains
HYPE was distributed through a community airdrop, where users earned eligibility by accumulating reward points over six months ending in May. Each point earned resulted in 5 tokens for eligible users.
Despite typical sell pressure from airdrop recipients, demand for HYPE appears to be outstripping supply, suggesting positive market sentiment and strong upward momentum.
Hyperliquid’s airdrop recipients have shared anecdotes about their windfalls on X.com. One user of the decentralized derivatives exchange reported gains exceeding $300,000 from their airdropped tokens. Another user posted, “I got a nice drop too,” along with a screenshot showing over $18,000 earned from their allocation.
HYPE plays a crucial role within the Hyperliquid ecosystem, serving multiple functions that enhance the platform’s utility and decentralization. It can be staked to secure HyperBFT, an optimized proof-of-stake consensus mechanism that ensures network security and promotes decentralization. Additionally, HYPE is the native gas token for the HyperEVM, the network’s execution environment, facilitating transaction fees.
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