DWF Ventures Releases In-Depth Report on Hyperliquid and HyperEVM Growth

• It provides a detailed account of the meteoric ascent of Hyperliquid’s PerpDEX, which has emerged as a formidable rival to CEXs.
• According to DWF Ventures, the lack of early-stage venture capital investment was one of the factors that contributed to Hyperliquid’s immense success.

A comprehensive analysis of Hyperliquid and HyperEVM has been released by DWF Ventures, which is the venture capital division of DWF Labs, which is a web3 investor and market maker. It provides a detailed account of the meteoric ascent of Hyperliquid’s PerpDEX, which has emerged as a formidable rival to CEXs, who have historically had the domination on futures volumes.

It just so happens that the analysis that was released by DWF Ventures as an X thread corresponds with the moment when Hyperliquid’s perps market share reached an all-time high. In the beginning, the web3 investing company goes back to the beginning of Hyperliquid’s existence. Hyperliquid was once an Arbitrum-based PerpDEX, but it later transitioned to HyperEVM and began airdropping the $HYPE token.

According to DWF Ventures, the lack of early-stage venture capital investment was one of the factors that contributed to Hyperliquid’s immense success. As an alternative, the PerpDEX concentrated on improving its user experience (UX) and organically expanding its community. The community’s dedication was rewarded with the allocation of 31% of $HYPE’s total supply to its early users.

With the implementation of its very own Layer 1 in the form of HyperEVM, Hyperliquid has been able to achieve unprecedented levels of success. The company DWF Ventures reports that the network achieved a monthly record for perps volume and income in the month of July, totaling $320 billion and $87 million respectively. It also accounted for 35 percent of the total income generated by blockchains over the same month, making it the chain with the biggest proportion of revenue.

DWF Ventures has also highlighted a number of other data points, one of which is an increase in Hyperliquid’s aggregate market share in comparison to CEXs, which has hit a new high of 6.1% this month. Additionally, Hyperliquid’s market share in comparison to Bybit and OKX has both achieved all-time highs.

After that, the tokenomics that undergird $HYPE are explored. The design of the tokenomics leads to the use of 97% of all protocol trading fees for the purpose of purchasing back the native token. At this point in time, the Hyperliquid Assistance Fund has purchased about $1.3 billion worth of $HYPE on the market. The development of governance options is another topic that is investigated in the research by the DWF. The most extreme of these plans advocates for the building of perps markets without the need for centralized approval.

The report concludes:

“Hyperliquid’s growth has been driven by factors including a successful airdrop, a strong and organic community, and of course, its effective product. As the platform’s market share continues to trend upwards, it is poised to capture further growth, translating to increased buybacks and buy pressure over time.”

DWF Labs is a new generation Web3 investor and market maker. It is one of the biggest high-frequency cryptocurrency trading firms in the world, and it trades spot and derivatives markets on over 60 of the most prominent exchanges.