Hyperliquid Defies VC Norms with 35% DeFi Revenue Share and $87M Earnings

Hyperliquid has emerged as a standout player in the decentralized finance (DeFi) sector, achieving significant success without the backing of traditional venture capital (VC) funding. The platform, initially launched as an Arbitrum-based perpetual exchange (PerpDEX), has since evolved into a powerful decentralized exchange (DEX) through strategic development and a strong community-first approach. DWF Ventures, a venture arm of DWF Labs, has acknowledged Hyperliquid’s unique growth trajectory and its increasing influence in the DeFi ecosystem [1].

Rather than seeking early-stage VC investment, Hyperliquid chose to prioritize community engagement and product excellence. This independent approach allowed the platform to remain free from external investor pressures, enabling it to focus on building a robust and user-centric decentralized exchange. The company has emphasized that this strategy has been a key factor in its ability to maintain flexibility and make strategic decisions aligned with its vision [1].

A major milestone in Hyperliquid’s development was its migration from Arbitrum to its proprietary Layer-1 network, HyperEVM. This transition was aimed at enhancing the platform’s scalability and performance while providing a more secure infrastructure for its decentralized operations. Alongside the launch of HyperEVM, Hyperliquid introduced the HYPE token, with a generous airdrop allocating 31% of the total supply to early users. This move has been praised for fostering deep community loyalty and reinforcing the platform’s decentralized ethos [1].

Hyperliquid’s financial performance further highlights its success in the DeFi space. As of July, the platform generated $87 million in revenue and recorded an impressive $320 billion in perpetual trading volume. It has captured 35% of blockchain-based revenue in its category and secured 6.1% of the market share from centralized exchanges—remarkable metrics for a decentralized platform [1].

The platform’s tokenomics model is another key driver of its success. A deflationary mechanism is in place, where 97% of all trading fees are allocated to buybacks of the HYPE token. To date, nearly $1.33 billion worth of HYPE has been repurchased on the open market. This approach not only benefits token holders by increasing value but also reinforces a strong feedback loop between the platform’s performance and its token economy [1].

Hyperliquid’s journey provides a compelling blueprint for the future of DeFi. By focusing on product development, community alignment, and sustainable economic models, it has demonstrated that a decentralized platform can achieve substantial growth without traditional VC funding. The transition to HyperEVM, combined with its tokenomics strategy and early user incentives, has positioned Hyperliquid as a formidable force in both decentralized and centralized trading markets [1].

Source: [1] Hyperliquid Success: Unleashing a Revolutionary DeFi Model Without VC Funding (https://coinmarketcap.com/community/articles/689f2842d09be932afacd811/)