Hyperliquied, a decentralized finance (Defi) protocol, witnessed a remarkable surge in its HYPE token. Just 15 hours after its release on November 29, following a significant airdrop, the token’s value skyrocketed by 80%, reaching $7.03.
During its genesis event, the Defi protocol distributed 310 million HYPE tokens, each priced at $3.90, amounting to a staggering total distribution value of $1.2 billion. This rapid appreciation in token value led to its market capitalization approaching the $2 billion mark, a significant milestone for the project.
Hyperliquied functions on a layer-1 blockchain with a proof-of-stake consensus mechanism, capable of handling up to 200,000 transactions per second. The HYPE token is crucial to its ecosystem, serving as both the staking asset for consensus and the gas token for Hyperliquied’s Ethereum-compatible layer, HyperEVM.
Out of the 1 billion HYPE tokens, 31% were allocated during the genesis airdrop. The remaining tokens are reserved for future community rewards, with 23.8% locked for a year and vesting periods extending until 2028. Notably, Hyperliquied did not allot tokens to private investors or centralized exchanges.
Hyperliquied’s airdrop follows in the footsteps of other historic Defi giveaways such as Uniswap’s 2022 and Arbitum’s 2023 distributions, highlighting the efficacy of airdrops in driving community participation. Airdrops have emerged as a potent instrument in the crypto realm, with over $26.6 billion in tokens distributed in recent times. With the impressive growth of HYPE, Hyperliquied has firmly established itself as a leading contender in the Defi sector.
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