Hyperliquid, a decentralized perpetual exchange (DEX), has recently hit a major milestone, surpassing $1 trillion in total perpetual contract (perps) trading volume. Despite the broader market downturn and challenges across various sectors, Hyperliquid has managed to thrive, establishing itself as a dominant force in decentralized finance (DeFi).

Hyperliquid’s Market Dominance

According to data from DeFiLlama, Hyperliquid’s cumulative trading volume has now exceeded $1.1 trillion, a remarkable achievement given the current market conditions. Weekly volumes range between $40 billion and $50 billion, securing Hyperliquid more than 60% of the market share among perps platforms. This positions it as one of the leading players in the DeFi space.

Hyperliquid’s dominance was highlighted recently when a whale trader opened a massive 40x leverage BTC short position worth $423 million, causing a stir in the market. This “whale hunt” brought significant attention to the platform, reinforcing its growing presence. Despite these developments, Hyperliquid’s native token, HYPE, has not seen the same level of success.

Struggles of the HYPE Token

While Hyperliquid continues to experience significant growth in terms of trading volume, the price of its native token, HYPE, has been on a consistent downward trend. As of now, HYPE is trading at $12.9, a decrease of 3.4% over the past day, reaching lows not seen since December 2024.

The token’s underperformance has been a point of concern for investors, especially since the platform has been receiving increased attention for possible money laundering issues. Despite this, analysts remain hopeful about the token’s future, with some predicting that HYPE could eventually reach between $50 and $100, driven by the platform’s success and growth.

Analyst Predictions for HYPE’s Future

An analyst pointed out that Hyperliquid’s impressive growth could provide significant upside for the HYPE token. With the platform averaging $6.7 billion in daily volume, up from just $1.1 billion in October, its market share has grown substantially. In just six months, Hyperliquid’s share of the market relative to Binance has increased from 2% to 9%.

“If Hyperliquid can maintain just a fraction of its growth rate, we could see it reach ~20% of Binance’s volumes by the end of the year,” the analyst wrote. This growth could potentially push HYPE’s value to between $40 and $50, according to the forecast.

Further boosting this prediction is the recent addition of native spot Bitcoin (BTC) trading, coin margin functionality, and a potential delta-neutral stablecoin launch, all of which are expected to drive future growth. Hyperliquid’s Layer 1 blockchain ecosystem has also attracted over 50 projects, and the platform holds over $2.3 billion in USDC and BTC deposits.

Hyperliquid’s Long-Term Potential

Looking ahead, analysts believe that Hyperliquid has the potential to establish itself as a top blockchain. With its robust Layer 1 ecosystem and continued innovation, Hyperliquid could become the third most-used blockchain after Ethereum (ETH) and Solana (SOL).

“Given ETH and SOL are worth $230 billion and $75 billion, respectively, what does that make Hyperliquid’s potential L1 valuation?” the analyst mused. Even at 15-25% of Ethereum or Solana’s valuation, Hyperliquid’s L1 could significantly boost HYPE’s price, making a $100 target achievable.

Conclusion: Hyperliquid’s Growth Potential

While the HYPE token is currently struggling, Hyperliquid’s ongoing success in the perps market and its expansion into new areas suggest that the token could experience significant growth in the future. With the platform’s market share continuing to rise, the launch of new features, and its growing blockchain ecosystem, the future of Hyperliquid—and its native token—looks promising.

For now, investors are watching closely as the platform’s growth could eventually lead to a substantial increase in the value of HYPE, even if its price remains subdued in the short term. Hyperliquid’s journey mirrors the early stages of successful tech platforms, and if it continues its rapid ascent, HYPE could very well be poised for a major breakout.