Hyperliquid fee generation could explode in 2025, expert says

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As a seasoned analyst with over a decade of experience in the cryptocurrency market, I have seen my fair share of promising projects that ultimately failed to deliver. However, HyperLiquid seems to be one that stands out from the crowd, and I am bullish on its potential.

In the upcoming year, Ryan Watkins, a co-founder at Syncracy Capital, predicts that HyperLiquid – the newly introduced layer-1 blockchain and decentralized exchange – may surpass its competitors in generating fees.

In recent days, there’s been a surge of interest in the Decentralized Exchange (DEX) platform for perpetual futures, sparked by rumors that cybercriminals connected to the Lazarus Group – a suspected North Korean hacking organization – were searching for weaknesses. However, Hyperliquid Labs has since clarified that the alleged vulnerability was not linked to any actual security flaw, but rather to the activity of ‘whales’ (large-scale investors), who are speculated to be North Korean hackers.

However, focusing on a different topic, let’s discuss Ryan Watkins’ perspective on Hyperliquid (HYPE). As the co-founder of venture capital firm Syncracy Capital and previously a senior research analyst at market intelligence platform Messari, here is what he has to say about HYPE.

On December 27th, a partner at Syncracy Capital publicly shared his optimistic viewpoint regarding the decentralized exchange (DEX) platform via X.

As an analyst, I find myself optimistic about the potential growth of Hyperliquid, a promising blockchain project. Based on the insights provided by Watkins, it appears that this project could potentially expand to become one of the largest fee-generating blockchain initiatives within the next year.

Hyperliquid could be leading among blockchains in terms of fee generation by 2025, largely due to its integration of a majority of the most lucrative cryptocurrency businesses throughout history. This includes both exchange operations, such as spot and derivatives trading, and blockspace, which is facilitated through HyperEVM.

Experts believe that the HYPE token could experience significant growth in the upcoming months due to the increasing acceptance of its spot and derivative services within the industry, coupled with the growing popularity of the HyperEVM.

From my perspective as a researcher, what seems to be the crucial piece for Hyperliquid to truly complete the ‘holy trinity’ and potentially lead the way, is the integration of a robust and reliable stablecoin.

Creating a stablecoin can prove challenging in reality, yet I wouldn’t be shocked if someone tries to do it. Previously, Terra has made attempts, and currently, projects like Binance Chain and Ethereum (with Ethereum Name Service) are following suit.

More recently, Ethena Labs unveiled USDtb – a digital currency that’s stability is tied to Blackrock’s USD Institutional Digital Liquidity Fund. This venture is being carried out jointly with the tokenization platform, Securitize.

According to DeFi Llama statistics, Hyperliquid has amassed approximately $5.16 million in fees and earnings over the past week. However, Ethereum, Solana, and Tron have yielded higher figures. Notably, within the entire ecosystem, the protocols with the highest fees are primarily found on Ethereum, with Tether, a significant stablecoin player, taking the lead. On the Solana network, Raydium (DEX protocol), Jito (liquid staking platform), and Pump.fun (meme launchpad) are the top earners when it comes to fees generation.

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2024-12-27 23:38