Hyperliquid Unveils HyperEVM: A Game Changer for DeFi

Hyperliquid, a leading blockchain infrastructure provider, has launched HyperEVM, its Ethereum Virtual Machine (EVM) layer, on the mainnet. This significant development aims to bolster the decentralized finance (DeFi) ecosystem by integrating general-purpose programmability into Hyperliquid's high-performance financial system.

The HyperEVM platform is not a separate chain but rather an integral part of the Hyperliquid layer 1 blockchain. This integration enables direct transfers between the EVM and the L1, as well as direct interaction between the EVM and the L1 components, including spot and perp order books. The Hyper Foundation announced the launch of the EVM-compatible protocol on February 18, marking a major milestone in the evolution of the DeFi ecosystem.

The initial mainnet release of HyperEVM includes EVM blocks as part of the layer 1 execution platform, benefiting from the security of Hyperliquid's HyperBFT consensus mechanism. Additionally, spot transfers are now supported, with the native token HYPE and HyperEVM's HYPE functioning as the chain's native gas token. A canonical WHYPE system has also been deployed to support DeFi applications within the Hyperliquid ecosystem.

While tooling and analytics around mainnet HyperEVM may not be polished on day one, the platform allows for real-time streaming of raw HyperEVM block data to S3, eliminating the need to run a node to index the general-purpose EVM. Future network upgrades will enable native transfers for general ERC20 tokens and pre-compiles, with the integration of multi-sig smart contracts functionality providing enhanced security for staking, order book trading, and asset custody on Hyperliquid mainnet.

The native token HYPE, launched via an airdrop in November 2024, has gained significant traction in the market. Although recent declines have the HYPE price hovering near $25.80, the long-term outlook for the L1 chain remains bullish. With market conditions supporting bulls in the coming months, an upward flip in HYPE price is expected.