Hyperliquid, which has exceeded 10 billion US dollars in eight days, is the next meme-making machine?

Whether it is on-chain derivatives, the DeFi track, or the DEX decentralized exchange, these fields are already overcrowded, and the competition is suffocating. Hyperliquid, which only opened for half a month, used actual K-line charts to ignite the attention and hot spots of the entire industry. In a short period of time, it rose from 2 US dollars to 29 US dollars, causing countless people to rush for it.

What's the logic behind this? Is this a simple technological innovation frenzy, or does it hide some deep-seated driving force? Let’s put aside all arrogance and prejudice and dig deep into why this platform has quickly become the focus and whether it will become the next meme token creation machine.

What is Hyperliquid? What makes it different?

Hyperliquid is a decentralized perpetual contract trading platform. Compared with the familiar GMX and dYdX, it is not just another "replacement". It brings technological and model disruption and solves the common pain points of DEX: slow transaction speed, high fees, and poor transparency. Especially in derivatives trading, its advantages are even more obvious.

The following are its core features:

1. Decentralized order book perpetual contract

Hyperliquid abandons the AMM (automated market maker) model of traditional DEX, and instead adopts an order book model - more like a traditional market trading method. This method not only has high transaction efficiency, but also has accurate matching.

2. Self-developed high-performance L1 chain

Unlike GMX, dYdX and other platforms that rely on Ethereum and Arbitrum, Hyperliquid has its own independently developed high-performance L1 public chain. It is specially designed for low-latency and high-frequency transactions, ensuring that every transaction can be completed instantly with almost no delay, truly achieving "fast and stable".

3. Zero gas bill

Hyperliquid brings your gas bill right back to zero. For DeFi users, this improvement is revolutionary. You can trade unlimitedly without having to worry about "losing money" on gas bills.

4. Full chain transparency

Every transaction is recorded on-chain, transparent and fully verifiable. This not only improves trust, but also eliminates black box operations and provides users with a sense of security.

5. Innovative smart treasury mechanism

Hyperliquid allows users to create personal “Vaults” and allows other users to deposit funds into these vaults and copy the vault owner’s trading strategies. To put it simply, the treasury mechanism is like "the master leads the order", and the master can also take 10% of the profit.

To summarize the advantages of Hyperliquid:

• Fast speed and low cost : self-developed L1 chain and zero gas fee make transactions more convenient and provide an excellent experience.

• High transparency : all transaction data are disclosed and black box operations are eliminated.

• Innovative and flexible : In addition to supporting perpetual contracts, it also provides advanced functions such as take profit and stop loss (TP/SL) and time weighted average price (TWAP) to meet the needs of advanced traders.

Dutch auction: meme launches new twist

Hyperliquid’s meme launch mechanism, Dutch Auction, provides a new path for memes to explode again.

What is a Dutch auction? In layman's terms, a Dutch auction is a "reverse auction": you start with a high price and gradually lower the price over time until someone bids. In Hyperliquid, a "coin listing quota" is auctioned every 31 hours. The price of this quota is determined by bidding, and the starting price is usually twice the previous round.

Why does this appeal to memes? Because of scarcity! With only one spot available every 31 hours, this is a great opportunity for exposure and gaming for any small-cap project or active community. Even those little-known coins, as long as the community enthusiasm is high enough and the ticker name is eye-catching enough, they will have the opportunity to detonate the market through the Dutch auction.

Taking the recent auction as an example, the price of the quota has soared to 100 WU (about 100,000 US dollars) , and this is just the beginning. It is this scarcity and competition mechanism that makes more projects willing to spend money to get a chance to "get out of the circle". In this way, meme coins with small market capitalization can not only attract attention through collective bidding, but also become the focus of the industry.

Super-fast capital influx: market hot money star-making factory

From January to December, Hyperliquid's cumulative trading volume soared from US$14 billion to US$820 billion , an increase of more than 50 times. The number of users has also increased from 25,000 to 244,000, an increase of nearly ten times.

The direct impact of the speed and scale of this capital inflow is:

1. Rapid increase in liquidity : The influx of large amounts of funds has increased the depth of transactions and market popularity, providing fertile ground for the development of memes.

2. The explosion of small-market value projects : After small projects obtain currency listing quotas through Dutch auctions, they can quickly gain attention by leveraging the popularity of the platform, and complete fund accumulation and community expansion in a short period of time.

Hyperliquid is now like a meme token-making machine, pushing "small but beautiful" projects to a bigger stage.

How to participate in Hyperliquid?

Method 1: Directly participate in spot projects (meme coins)

On Hyperliquid, a large number of meme projects have been launched. Some projects usually have lower market values ​​but have active community atmosphere. If you prefer low risk, you can choose to participate in these spot projects and look for potential projects driven by hot money.

**Method 2: Participate in the Dutch auction and seize internal market

opportunities**

If you have a higher risk appetite, you can use your own investment research strategy to choose related memes to be auctioned by the Dutch auction mechanism, which is conducted every 31 hours. After a successful auction, your tokens will receive Hyperliquid’s trading support and community exposure.

Risks and Recommendations

1. Market risk: Participating in Hyperliquid's auction means that you may encounter some "local dogs". These coins have low market value, average community activity, and some coins may have problems such as pulling orders and trading, or even project failure. risk. Especially when the auction fee rises to 100WU, many small projects may not have enough funds to bear the cost of currency listing. At this time, the quality of the project may not be so guaranteed.

2. Liquidity risk: Since the number of tokens listed on the platform is limited and there is only one opportunity every 31 hours, small projects with low liquidity may fall into severe price fluctuations.

3. Participation logic: After some project parties obtain quotas through lower auction fees, they will use "pulling" means to increase the quota, which will then bring higher handling fees and transaction volume. However, if the project does not have strong market support or has no substantial value, it may lead to collapse or "rug pull".

4. Recommendation: For beginners or users with smaller funds, it is recommended to participate in Dutch auctions with caution. You can first pay attention to some existing and active meme projects and observe their market performance and community dynamics. When choosing whether to participate in an auction, you must have sufficient understanding and judgment to avoid blindly following the trend just because of market popularity.

Don’t blindly follow the trend, stay calm

Hyperliquid is undoubtedly a dazzling new star in the DeFi track. With its unique Dutch auction mechanism, extremely fast transaction experience, zero gas fees and decentralized transparency, it has quickly attracted a large amount of funds and users, and has become the focus of the market. focus. As for the identity of meme tokens as a "manufacturing machine", behind it is not only the craze of a new gameplay, but also the market reaction brought about by a full understanding of the platform's functions and mechanisms.

However, the influx of hot money does not mean that all projects are worth following blindly. Especially in the face of such a complex market environment, we need to keep a clear mind. The market is always right , and you can only make rational decisions based on a full understanding of the platform, project, and market risks. The so-called "listing fee" auctions, high-quality shells, and the explosion of low-market value projects are tempting, but the risks hidden behind them are far greater than we imagined.

Don’t be fooled by the so-called “beautiful narrative” and avoid blind FOMO (fear of missing out) . You must have clear judgment and understand the underlying logic behind each operation.