Hyperliquid EVM TVL Surges 337% to $1.7 Billion

Hyperliquid EVM has experienced a remarkable surge in growth this year, with its total value locked (TVL) reaching $1.7 billion. This represents a 337% increase from the $400 million it had at the start of the year, positioning Hyperliquid as one of the top DeFi protocols in terms of TVL. This growth underscores the market's demand for innovative DeFi infrastructure that attracts both developers and users.

Hyperliquid's ecosystem is characterized by its ever-expanding network of projects that develop new financial products and services, leveraging its programmable architecture. This surge in adoption is driven by the demand for more sophisticated DeFi building blocks that go beyond what conventional smart contracts can offer. Hyperliquid serves as a prime testing ground for what decentralized protocols can achieve.

Hyperliquid's success is underpinned by a modular code architecture that allows protocols to perform various functions, such as routing trades through Hypercore orderbooks. This architecture is flexible and can be used at different levels of depth, making it accessible to protocol developers and orderbook developers alike. Pvptrade, for instance, uses this architecture through a Telegram bot interface to provide an innovative trading experience. Similarly, Axiom Exchange has built a trading terminal that captures value by utilizing Hyperliquid’s flexible infrastructure, offering users an experience distinct from centralized exchanges.

Another key feature of Hyperliquid is the auction mechanism of HIP3, which is currently in testnet. This mechanism enables builders to create bespoke markets with configurable fees not exceeding 50%. This framework has already attracted projects like Hyperunit, which is testing leveraged equity products, and Ethena Labs, which is working with USDe trading pairs. This flexibility allows for a wide range of innovative DeFi applications catering to diverse trader needs.

One of the most groundbreaking features of Hyperliquid is the profound composability of the Hypercore and Hyperliquid EVM, which share the same state within the protocol. This architecture allows for seamless transactions that can span multiple smart contracts and blocks. This composability is demonstrated in protocols like Hyperlendx, which offers liquid perpetual positions by allowing users to borrow and lend against leveraged Hypercore positions, and Felix Protocol, which extends capital efficiency by facilitating stablecoin borrowing against Hypercore positions.

Liminal Money is another example that highlights the cross-layer synergies available in the DeFi ecosystem. It operates from the EVM layer, accepting deposits in USDC, and interacts with Hypercore for spot purchasing, using equivalent short positions to maintain market neutrality. This dynamic, layer-crossing strategy showcases the potential of Hyperliquid's architecture.

The capabilities of builder codes, HIP3 auctions, and the composability of Hypercore/HyperEVM are enabling protocol architectures that were previously impossible within classical DeFi frameworks. Lending, options, liquid staking tokens (LSTs), and dApps are being integrated into an ecosystem where these primitives interact with Hypercore’s deep liquidity pools. This integration results in a fully integrated and highly efficient financial ecosystem, where liquidity is shared across multiple pools and lenders.

Decentralized finance has reached a new significant milestone with the rapid ascension of Hyperliquid EVM and its ecosystem. The rise of Hyperliquid EVM marks another step in the march of decentralized protocols toward providing programmable, permissionless, and composable financial services to all. As adoption accelerates and fresh protocols appear, Hyperliquid is becoming a base element of the next wave of DeFi innovation. The vision of a fully integrated financial system, where lending, trading, and asset management share liquidity layers and alternate seamlessly, is becoming a reality, promising new possibilities for traders, developers, and investors.