Introduction

Hyperliquid continues to show exponential growth across many metrics, surpassing $6b in daily volume and an open interest of $2b+ on November 12th. It has recently entered the top 10 chains by TVL, commanding over $1.1b in TVL. This makes up over 54% of all USDC on Arbitrum, which is tied up in the Hyperliquid bridge and also includes spot markets of Hyperliquid-native tokens such as PURR, with these spot assets continuing to grow.

Hyperliquid is having its long-awaited airdrop in November, and Aevo is currently pricing at around $4/point. We expect this number to range because Hyperliquid is not just a perp dex but it is a fully-fledged layer 1 chain with many apps planning to launch, so many participants are speculating on where it will land but nobody really knows what to expect.

In this short note, we aim to cover its parabolic growth and potential strategies for its upcoming airdrop. Hyperliquid’s growth continues to grow relative to other perp DEXs, taking up nearly 30% of all volumes.

The core DEX they have built will serve as the core liquidity engine that can power any of the apps that launch on Hyperliquid. Through the HyperEVM, Hyperliquid will transition from being a perp/spot DEX to being a general purpose L1, where many core DeFi apps can also launch - creating a similar experience to that of a CEX, but with the advantages of tapping into onchain liquidity. Leading up to the launch dozens of teams have already announced that they plan to participate and launch across many verticals including but not limited to:

• Lending/Yields
  • Hyperlend
  • Harmonix
• Liquid Staking
  • Kinetiq
  • Thunderhead Labs
• Derivatives
  • Rage Trade
  • Buffer Finance
• Stablecoins
  • Felix Protocol
  • Resolv
• Infrastructure/trading tools
  • HypurrScan (block explorer)

Along with the above apps, many other tools built for trading, gamblefi and many others also plan to launch.

Growth and Trajectory into TGE

Not only have Hyperliquid volumes continue to increase, but we have also seen TVL increase as shown by the nearly $853b in USDC bridged below.

Even since the points program ended and the snapshot was announced, USDC deposits have continued to climb, showing the stickiness of the product despite concerns related to points farming.

Another interesting view is to analyze bridge activity, particularly looking at the withdrawal ratio of certain traders. In other words, we want to see traders who withdrew more than they deposited into Hyperliquid through the official bridge; hence, we can consider them profitable traders. A withdrawal ratio of 2 means a 2x, and so on - we are unsure of the activity they did to make the money but we simply want to highlight them as they are also the ones who successfully took profits and “cashed out”. Below are the top addresses, sorted by the withdrawal ratio over the last 3 months.

Potential Positions

The main way of betting on Hyperliquid at the moment is via PURR, the native memecoin launched by the team itself. They launched other spot markets, mainly comprising of an assortment of memes:

PURR is above $138m at the time of writing and seems to be the leader, with decent liquidity/volumes compared to some of the lower-cap tokens.