Overview of HyperEVM: Early alpha behind Ecosystem
$HYPE recently hit new ATH. People are regretting fumbling on HYPE, but most don’t realize that HL’s most potential part is still undiscovered: HyperEVM, which has barely been mentioned.
So what’s going on with HyperEVM, and is there any alpha?
We will look through:
1. What is HyperEVM?
2. The HyperEVM ecosystem
3. Alpha on HyperEVM
1. What is HyperEVM?
To remind you, Hyperliquid’s vision includes 2 components:
- HyperCore: the perpetual DEX
- HyperEVM: the network ecosystem
Jeff himself confirmed, HyperEVM is 1/2 of Hyperliquid’s core infra, but it seems the masses aren’t giving it enough attention.
Follow $HYPE tokenomics, there is still 33% supply left for future rewards, which will definitely be big.
While HyperCore already had a huge airdrop, now at 460k users, HyperEVM has yet to distribute any rewards and currently has only 60k users.
So, HyperEVM potential is massive.
2. HyperEVM Ecosystem
Which has been the fastest-growing eco in the past few months.
Despite only launched in Feb, it now has 1B TVL, among the top 10 chains, supported by the rise of $HYPE.
But even when HYPE was in down-mode, it still went from 0 to 350M, explosive growth.
In the past month, the TVL of all protocols has gained 20%-200%.
The sectors with the most TVL are:
- Lending: @hyperlendx @felixprotocol @MorphoLabs @HypurrFi
- Yield: @0xHyperBeat @Looped_HYPE @stakedhype
- DEX: @HyperSwapX @KittenswapHype
Listed in descending order:
What we can see here is that DEX is not the number one TVL sector, like we usually see on other networks, but rather lending, LST.
This could be explained by 2 main reasons:
1) $HYPE is the only token bridged to HyperEVM via official bridge. So, to use other protocols in the eco, user must stake/collateralize HYPE to get stablecoin/other tokens.
2) It also shows that on HyperEVM, users tend to farm more than trade. This could hint that most of the eco aim for $HYPE airdrops, not finding trading opportunities, or the masses simply don’t know about them yet
So, what we can find from this? Let’s dive into.
3. Alpha on HyperEVM
a) Airdrop
Firstly, it’s obvious that HyperEVM has huge airdrop potential. As mentioned earlier, there is still 33% of the $HYPE supply reserved for rewards, and HyperEVM is significantly under-farmed compared to HL L1. Most EVM projects haven’t launched tokens yet, so farming here will definitely be EV+.
Especially, as we discussed, most of the TVL is focused on lending and yield farming, so you can still hold your $HYPE while farming for points, gain both in price and airdrop reward.
b) DEX Tokens
Despite having $120M in daily trading volume, over $100M in DEX TVL, HyperEVM DEX tokens are still really underrated. Noticeable recent tokens like $BUDDY, $GM, and $DNDX all have market caps under $20M.
In contrast, on HL L1, $PURR ATH was $400M and is now at $150M.
Unlike Solana, where thousands of tokens launch every day, HyperEVM only has < 5 prominent tokens with liquidity under $5M, despite ecosystem has $1B in TVL.
Meaning that even a small fund flow from lending/LST into DEX tokens could trigger huge rally. It’s only a matter of time.
c) NFTs
Not many know, but people are earning crazy money from NFTs here. A top collection, @HypioHL, was minted at 0.022 ETH ($80) and is now worth a minimum of $6k each. Plus, people received $5k+ from token airdrops to NFT holders.
This sector has huge potential on HyperEVM.
d) Stablecoins
As mentioned earlier, people are using $HYPE for everything on HyperEVM, but eventually, there will need to be a stablecoin.
Currently, there are feUSD, USDCe, USDT0, etc, but none have a dominant position. Since the market is still early, any project has the chance to take the lead. This means you could find an opportunity to invest in the stablecoin issuer you believe in, and if it succeeds, the upside will be yours.
Conclusion
So, HL EVM has huge potential in token, NFT, and airdrop, yet remains largely undiscovered by the masses. This presents an EV+ opportunity for those farming here.
As HL L1 has recently skyrocketed in traction, EVM could be the catalyst for Hyperliquid’s growth in the near future.
Research conducted by Monolith team.
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