Hyperliquid now controls over 50% of daily crypto derivatives trading, with a trading volume surging 84% to nearly $5 billion in just 24 hours.
The November 29 airdrop of 31 million HYPE tokens boosted Hyperliquid's valuation to $1.2 billion. Token price surged from $3.90 to $9.87 before stabilizing at $8.86.
31% of HYPE tokens were distributed via airdrop, while 38.8% are reserved for future rewards. A portion is locked for contributors, with full vesting by 2028.
Critics argue Hyperliquid lacks decentralization, citing limited validators, multisig withdrawals, and absence of a robust consensus mechanism.
Despite concerns, Hyperliquid's Total Value Locked (TVL) soared to $1.4 billion in December, up from $658 million in October.