What Is HYPE? Hyperliquid (HYPE) Token Explained

HYPE Overview

HYPE is the governance token of Hyperliquid, a decentralized perpetual futures exchange. Hyperliquid is not only a trading venue, it also operates as a high-performance Layer 1 blockchain, where HYPE serves as the gas token used to pay network fees.

Hyperliquid was founded in 2022 by a team with deep crypto market-making experience. Its core founder, Jeff, previously worked as an algorithm engineer at a top quantitative trading firm. After becoming deeply involved in DeFi, Jeff and the team identified a key industry bottleneck: most decentralized exchanges (DEXs) are limited by the performance constraints of general-purpose blockchains and cannot deliver the smooth, CEX-like trading experience that active traders expect. Coming from a quant background, Jeff had an uncompromising focus on liquidity and execution speed. As development progressed, the team realized that simply building a DApp on existing chains would never be enough. A generic base layer cannot reliably support the millisecond-level responsiveness required for high-frequency trading.

As a result, Hyperliquid’s founding team chose to start from scratch and build a Layer 1 chain optimized specifically for financial trading. By removing unnecessary complexity and implementing a customized consensus design, Hyperliquid embedded core order book functionality directly into the protocol layer. Hyperliquid was born from this approach, and HYPE became the engine powering its broader vision: making on-chain trading feel fast, seamless, and far less burdened by congestion and excessive fees.

Hyperliquid: The Leading Perp DEX

The decentralized perpetual futures (Perp DEX) sector has a long history. Early platforms like dYdX helped popularize BTC-USDC perpetuals, while GMX proved the market’s upside by scaling volume through a liquidity pool model and higher leverage. However, the project that truly broke the ceiling and pushed on-chain derivatives into the mainstream spotlight is Hyperliquid. Since its mainnet launch in the first half of 2023, Hyperliquid has rapidly become a category-defining name thanks to its extreme performance and sharp understanding of market demand. For many traders, it was the first time an on-chain perpetual DEX delivered a trading experience comparable to a centralized exchange (CEX). That improved execution quality helped traders capture opportunities more efficiently and encouraged a broader wave of crypto users to participate in high-frequency, high-volatility on-chain derivatives trading.

Hyperliquid’s market leadership comes from both defensible technology and a distinct community strategy. On the technical side, Hyperliquid refused to compromise by deploying as an app on existing chains. Instead, it developed its proprietary HyperBFT algorithm, enabling throughput that can exceed 200,000 TPS (transactions per second). This design directly targets the pain points that have historically held DeFi trading back, including lag, congestion, and high slippage. At the same time, HyperEVM provides Ethereum smart contract compatibility, allowing Hyperliquid to combine extreme speed with access to Ethereum’s liquidity and composability.

Beyond infrastructure, Hyperliquid has built strong social momentum through trader influence. A number of independent traders have become visible KOLs on X (formerly Twitter), such as memecoin-focused James Wynn and macro trend trader The White Whale. By publicly sharing positions and strategies, they have driven significant attention to the platform and helped shape Hyperliquid into a bellwether for on-chain perpetual trading. Backed by this user base and product strength, Hyperliquid set a widely cited record of ranking No. 1 in Perp DEX trading volume for 15 consecutive months before newer competitors like Aster emerged. Monthly trading volume also reportedly surpassed the $200 billion milestone across multiple months, further reinforcing Hyperliquid’s leadership in decentralized derivatives.

HYPE Tokenomics

As Hyperliquid’s governance token and gas token, HYPE completed its TGE (Token Generation Event) on November 29, 2024. Before the TGE, users who traded on Hyperliquid could earn points, which were widely viewed as signals of potential weighting for a future HYPE airdrop allocation. Unlike many crypto projects, Hyperliquid did not bring in VC (venture capital) funding during its early stage. In practice, this means HYPE did not have a typical VC unlock schedule after launch, which can reduce the risk of large, structured sell pressure that often appears in phases. Given the market conditions at the time, this restrained fundraising approach was broadly seen as an effort to emphasize a “fair launch” and a “community-first” distribution narrative.

Because of this, Hyperliquid’s points system gained attention quickly. Points were no longer seen as simple usage records. Instead, many market participants treated them as a ticket to early value distribution, making HYPE one of the more notable community-consensus tokenomics experiments in DeFi.

In HYPE’s allocation model, community incentives are positioned near the core. Future Emissions & Community Rewards account for 38.89% of the total token supply, the largest share. Genesis Distribution is the second largest at 31%. In comparison, allocations for core contributors and the Hyper Foundation are 23.8% and 6%, respectively.

From a tokenomics perspective, this structure reduces concentration among internal stakeholders while reserving more supply for real users and ecosystem builders who help operate and grow the protocol. It also reinforces Hyperliquid’s positioning as a community-driven network.

How to Get HYPE

For individual users, one theoretical path is to participate in Hyperliquid’s on-chain trading activity and accumulate platform points, which may contribute to eligibility for future HYPE-related incentive distributions. However, this approach is inherently long-term and comes with uncertainty. First, airdrops often involve lengthy waiting periods. Second, the amount a user ultimately receives typically depends on total participation and evolving allocation rules, which makes it difficult to estimate outcomes in advance. For that reason, this path is generally more suitable for active ecosystem participants rather than anyone seeking a predictable way to obtain HYPE.

A more direct approach is to buy HYPE through a centralized cryptocurrency exchange such as Bitunix. As a trusted intermediary, an exchange can support purchases using stablecoins like USDT, and some platforms may also support instant purchases via card in certain regions. This significantly lowers the barrier to entry for new users. Before using these services, users typically need to register an account and complete identity verification (KYC) to meet global anti-money laundering (AML) and counter-terrorist financing compliance requirements. Bitunix maintains a compliance and risk control framework, using mechanisms such as cold and hot wallet separation, multi-signature protections, and real-time monitoring to provide a higher level of asset security.

How to Buy HYPE on Bitunix (Step-by-Step)

Create a Bitunix account Sign up and secure your account using the available security settings.
Complete KYC (optional) Follow the in-app verification flow to finish identity checks based on your region and account needs.
Deposit USDT Open Assets, tap Deposit, select USDT, then choose your preferred network and transfer funds.
Go to Spot trading Enter the Spot market and search for HYPE/USDT.
Place your orderMarket Order: buy instantly at the current market priceLimit Order: set your preferred price and wait for the order to fill
Check your balance After the trade executes, your HYPE tokens will appear in your Spot Wallet.

Hyperliquid Milestone

Disclaimer

This article is not intended to provide: (i) investment advice or investment recommendations; (ii) an offer or solicitation to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Digital assets (including stablecoins and NFTs) involve high risk and may be highly volatile. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For your specific circumstances, consult your legal, tax, or investment professionals. You are responsible for understanding and complying with all applicable local laws and regulations.

About Bitunix

Bitunix is a global cryptocurrency derivatives exchange trusted by over 3 million users across more than 100 countries. At Bitunix, we are committed to providing a transparent, compliant, and secure trading environment for every user. Our platform features a fast registration process and a user-friendly verification system supported by mandatory KYC to ensure safety and compliance. With global standards of protection through Proof of Reserves (POR) and the Bitunix Care Fund, we prioritize user trust and fund security. The K-Line Ultra chart system delivers a seamless trading experience for both beginners and advanced traders, while leverage of up to 200x and deep liquidity make Bitunix one of the most dynamic platforms in the market.

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