Hyperliquid 2025 First Half Panorama Report

Welcome to Hyperliquid's semi-annual report, which comprehensively analyzes the development and metrics of Hyperliquid and HyperEVM through the first half of 2025. It's a long read, but definitely worth the read. Summary: Hyperliquid leads the perpetual swap DEX market with a 73% market share and continues to expand in the CEX sector, capturing 6.1% of total trading volume and 17.8% of open interest. HyperEVM has experienced explosive growth, surpassing $2.08 billion in TVL (total value locked) in just five months, surpassing both Avalanche and Polygon. This growth is driven by its rapidly expanding native ecosystem (Kinetiq, Hyperlend, and Liminal). Unit, CoreWriter, and the HIP-3 protocol lay the foundation for a new generation of perpetual swap markets, enabling native multi-asset deposits and full-chain composability. High-impact buyback model: 92% of fees are used to repurchase HYPE tokens, generating over $800 million in annualized revenue, driving a 64.8% price increase in Q1 2025, and attracting public companies to establish HYPE treasuries.

Strategic cooperation becomes a growth accelerator: Phantom Perps integration achieved through Builder Codes opens up new revenue sources (potential annual growth of +2% to +4%), demonstrating Hyperliquid's ability to seamlessly integrate with large-scale third-party ecosystems.

1. Analysis of Hyperliquid's on-chain indicators

The first half of 2025 has come to an end, and now we will evaluate Hyperliquid's growth trajectory based on core on-chain indicators. As a leader in perpetual contract DEX, we will analyze from the dimensions of TVL (total locked value), capital inflow, open interest, trading volume, trader activity and protocol revenue.

(1)TVL and capital inflow

The launch and successful airdrop of the HYPE token did not lead to user churn. Instead, the fourth quarter of 2024 marked the beginning of Hyperliquid's explosive growth, a momentum that continued into the first half of 2025. Specifically, Hyperliquid's capital inflows surged in November 2024, reaching a single-day peak exceeding $50 million. Its TVL soared from $564 million to over $2 billion, a 269% increase in the fourth quarter of 2024. Continuing this trend, Hyperliquid further solidified its dominance in decentralized perpetual swaps trading during the first half of 2025. As of June 30, 2025, Hyperliquid's TVL (total value locked) reached $3.5 billion, a net increase of 70.8% from $2.1 billion at the beginning of the year. During this period, despite experiencing a significant net outflow of $59 billion in March, Hyperliquid maintained an average weekly net inflow of $58 million.

Note: As of the time of writing, Hyperliquid TVL has exceeded $5 billion.

(2)Trading Volume and Open Interest

In the fourth quarter of 2024, Hyperliquid open interest exceeded the $1 billion mark for the first time and reached a historical peak of $3.27 billion at the end of the year. After an exceptionally strong first half of 2025, Hyperliquid’s open interest reached a new high of nearly $7.5 billion. As of this writing (just weeks after the semester ended), that figure has climbed to $15 billion—equivalent to 61% of ByBit, 105% of OKX, and 120% of Bitget. Hyperliquid's weekly trading volume jumped from approximately $13 billion in the fourth quarter of 2024 to an average of $47 billion in the first half of 2025, reaching an all-time peak of over $78 billion during the week of May 12. By the end of 2024, Hyperliquid accounted for approximately 56% of the trading volume on decentralized perpetual swap platforms. Its dominance continued to grow, exceeding 73% market share by the end of the first quarter of 2025. In terms of user growth, the number of Hyperliquid addresses increased from 291,000 at the beginning of 2025 to 518,000 at the end of the first half of the year, a 78% increase in six months. It is worth noting that the cumulative liquidation positions of these addresses exceeded US$53 billion.

（3）Hyperliquid vs. Centralized Exchanges

We are already accustomed to witnessing Hyperliquid’s dominance in the perpetual contract DEX market, but the most striking thing in the first half of 2025 is its growth performance relative to the centralized exchanges that are losing ground. As of this writing, Hyperliquid accounts for: 6.1% of trading volume on centralized exchanges (up 3.9% from January) 17.8% of open interest on centralized exchanges (up 12.3% from January) The core drivers of Hyperliquid's explosive growth compared to CEXs and DEXs are as follows: Hyperliquid boasts a range of competitive advantages that make it the most attractive trading venue. First, it offers one of the lowest costs for trading spot and perpetual contracts in the ecosystem, while also providing the deepest on-chain liquidity—with order book depth for some assets rivaling that of leading CEXs. For example, during the PUMP token launch, Hyperliquid demonstrated the deepest market depth, highest trading volume, and narrowest spreads for that asset, setting an unprecedented milestone in DEX history. Another key advantage: Hyperliquid has been the premier platform for new perpetual swaps in recent months (particularly since the launch of the Trump meme coin), and with the launch of UNIT, it has expanded this advantage to the spot market. This has created a powerful customer acquisition engine, reinforcing traders' perception that Hyperliquid is the go-to place for hot new coins. The launch of PUMP is a prime example. One of the most anticipated Token Generation Events (TGEs) in history, its ICO raised approximately $500 million in just 12 minutes, setting a record for fastest ICO. Hyperliquid once again became the first platform to launch both spot and futures trading for the token. Even more impressively, it was the first major platform to offer pre-trading for PUMP.

Today, Hyperliquid has achieved transaction speed, liquidity and user experience comparable to the top CEXs while maintaining its core advantages of decentralization (permissionless access, on-chain transparency and native composability). Any asset, position or transaction can be directly integrated with smart contracts, dApps or other protocols on HyperEVM, making it not only a trading venue but also a cornerstone of on-chain financial infrastructure.

(4) HLP Performance Analysis

Hyperliquidity Provider (HLP) plays a core role in the Hyperliquid ecosystem: it is a community-managed USDC fund pool that provides partial liquidity for order books, market making and automatic liquidation management. HLP aggregates the profits and losses generated by various strategies, including the liquidation module (Liquidator Vault), while providing users with non-directional risk exposure. Across various metrics, HLP's TVL (total value locked) surged significantly by the end of 2024—particularly after the HYPE token airdrop to users, jumping from $150 million at the end of November to $400 million by the beginning of 2025. Despite reaching a historic peak of $512 million, HLP's TVL remained stable throughout the first half of the year, ultimately settling at $372 million. During the same period, HLP's net profit grew from $50 million to nearly $68 million, providing users with an average annualized return of approximately 11%. Net returns in the first quarter of 2025 were +5.2%, with a maximum drawdown of less than 3.5% (even during the JELLY incident). It should be noted that in March 2025, Hyperliquid suffered a carefully orchestrated attack targeting limitations in its liquidation system. The attacker attempted to force HLP to take on multi-million dollar risky positions in an effort to disrupt the mechanism.

（5）Unit: The core pillar of Hyperliquid’s future

Unit, launched on February 14, 2025, is no ordinary project, but rather the core infrastructure that will determine the future development of the protocol. Its strategic value is already unquestionable after only a few months of launch.

As Hyperliquid’s asset tokenization layer, Unit supports native deposit and withdrawal functions for a variety of assets. After users deposit assets, Unit is assigned a corresponding trading code through the Hyperliquid auction system and is directly listed on the spot market. The service initially supported BTC and then quickly expanded to assets such as ETH, SOL, FARTCOIN, PUMP, and BONK.

This is a major breakthrough in the field of DeFi spot trading. Hyperliquid has thus become the first DEX that can deposit and withdraw assets as easily as centralized exchanges. With Unit, traders obtain a dedicated deposit address and can trade funds within minutes, without the need for wrappers or cross-chain bridging. Unit's value extends far beyond trading. It powers numerous protocols and products within the Hyperliquid ecosystem. For example, the delta-neutral yield protocol Liminal leverages Unit to achieve sustainable, independent market returns. Phantom recently integrated Unit through the Builder Codes project, providing underlying support for Phantom Perps. Since its launch, Unit's TVL (total value locked) has reached $800 million, making it the second-largest project in the ecosystem after Kinetiq. Assets listed on Unit generated over $15 billion in trading volume in the first half of the year. However, Hyperliquid's spot/perpetual trading volume still accounts for only 2%, far below the 15%-30% share of mainstream CEXs. We will continue to track these metrics in subsequent reports. With new tokens listed, potential asset class expansion, and more protocols being developed on Unit, Hyperliquid's spot and Unit platforms continue to see ample room for growth. 2. HyperEVM On-Chain Metrics Analysis: HyperEVM, a key pillar of the Hyperliquid ecosystem, officially launched in February 2025. This EVM-compatible blockchain is built directly on Hyperliquid's infrastructure, supporting the deployment of smart contracts and decentralized applications. Unlike many blockchains that struggle to gain market acceptance, HyperEVM offers a unique advantage: direct, native access to Hyperliquid's liquidity and order book. This deep integration has underpinned its remarkable growth trajectory, which we'll explore in detail.

（1）Technical Background and Innovative Breakthroughs

The launch of the HyperEVM mainnet in February 2025 was particularly sudden and minimalist. First, the project party did not issue any prior announcement (neither to the public nor to the developers), and the foundation stated that this move was intended to ensure "equal access and a fair starting point for everyone."

The network's initial functionality was extremely basic and did not even include pre-defined core features. In fact, users could only transfer HYPE tokens through specific smart contracts. This gradual deployment strategy was intended to control the impact of HyperEVM on Hyperliquid's underlying infrastructure, HyperCore.

In March 2025, HyperCore and HyperEVM were interconnected for the first time, allowing users to transfer other asset types in the Hyperliquid spot market. In April 2025, the mainnet deployed precompiled contract readers, enabling HyperEVM smart contracts to access HyperCore data (perpetual contract positions, treasury balances, oracle prices, and staked deposits). In May 2025, HyperEVM's "small block" time was reduced to 1 second, significantly improving network performance. It should be noted that HyperEVM uses a dual-blockchain architecture to balance speed and performance: Small block: 1-second block time, 2 million gas cap, supporting near-instantaneous transfers. Large block: 1-minute block time, 30 million gas cap, capable of handling heavy workloads. Finally, on July 5, 2025, CoreWriter was deployed to the HyperEVM mainnet. This marks the final step in achieving perfect composability for Hyperliquid's two-layer architecture - HyperEVM smart contracts can now write data to the infrastructure layer HyperCore.

HyperEVM's core value comes from its seamless compatibility with HyperCore. While other DeFi ecosystems still need to compete for liquidity, HyperEVM has directly inherited Hyperliquid's infrastructure, order books, and liquidity access rights.

(2) TVL (Total Value Locked) and Growth

The launch of HyperEVM immediately triggered a wave of activity in the ecosystem: although the initial TVL was less than US$50 million in early February, it exceeded the US$1 billion mark in mid-April, just two months after the mainnet launch. This rapid growth momentum continued throughout the first half of the year, and as of June 30, 2025, the TVL had doubled to US$2.08 billion. In the first half of the year, HyperEVM's average weekly TVL growth was approximately $185 million, peaking during the launch or acceleration of certain native protocols. This strong momentum enabled HyperEVM to rank among the top ten blockchains in terms of TVL and growth in just a few months, surpassing mature networks such as Avalanche, Aptos, Polygon, and Sui. This dynamic is driven by multiple catalysts: firstly, the market traction of Hyperliquid and the successful performance of the HYPE token, secondly, the anticipated second round of HYPE airdrops for HyperEVM users, and the launch of multiple points rewards programs by the native protocol. (3) On-chain activity and user growth In addition to TVL, on-chain activity has also shown similar growth. The number of daily active users has steadily increased, exceeding 44,000 addresses during the most active weeks in June. The average number of daily active addresses in the first half of 2025 is approximately 33,000, which is still relatively conservative. The number of transactions also showed the same trend, reaching 315,000 transactions per day during the peak period of activity, and an average daily transaction volume of approximately 208,000 transactions in the first half of the year. From an economic perspective, applications deployed on HyperEVM generate an average of $1,926,550 in fees per day, reaching a peak of $4,855,130 on May 21, 2025, and a daily low of $537,935 on March 22, 2025. A total of $256.2 million in fees has been generated since the blockchain's launch, making HyperEVM one of the most profitable blockchains in terms of DeFi monetization. (4) Overview of Key DApps in the Ecosystem The TVL distribution on HyperEVM demonstrates both the depth of the ecosystem and the diversity it has developed in a short period of time. As of the end of the first half of 2025, the following major applications performed particularly well: Kinetiq: TVL $1.2 billion Kinetiq is a liquidity staking protocol that was officially launched on HyperEVM on July 15, 2025. Despite its late launch, the protocol has achieved explosive growth thanks to its status as "Hyperliquid's first native LST" and its integration with mainstream DeFi protocols, with TVL quickly exceeding the $1 billion mark. Kinetiq's launch coincides with the deployment of the CoreWriter module—a key component that enables Kinetiq to natively integrate with HyperCore infrastructure, specifically interacting directly with Hyperliquid validators. This means Kinetiq can directly stake users' HYPE tokens and proactively allocate funds across validators, a feature unavailable with other liquidity staking protocols. Hyperlend: TVL $700 million (including lending) Hyperlend is a decentralized lending protocol built natively on the HyperEVM, supporting deposits and borrowing across multiple assets (HYPE and its LSTs, BTC, ETH, and various stablecoins). The protocol directly connects to HyperCore, allowing users to stake assets directly within the Hyperliquid application for lending and borrowing. Felix: TVL $390 million Felix is the first collateralized debt position (CDP) protocol on the HyperEVM, allowing users to borrow the feUSD stablecoin against a variety of collateral (HYPE, kHYPE, and BTC), while also offering classic Vanilla Markets for multi-asset lending. Felix's Vanilla Markets utilize the Morpho smart contract standard and, with a TVL of $390 million, has become one of the core native protocols in the ecosystem. Liminal: TVL $90 million Liminal is a delta-neutral yield protocol built natively on the HyperEVM. By capturing the funding rates of Hyperliquid leveraged traders, it provides sustainable and market-independent returns. This protocol draws on the Ethena strategy. After users deposit USDC, they can select target assets (HYPE, PUMP, FARTCOIN, SOL, etc.). The system will automatically establish equal amounts of spot long and perpetual short positions. This structure hedges market risks while creating real returns through positive funding rates. Since its launch, Liminal has achieved an annualized return of approximately 14%, attracted over 10,000 independent depositors, and achieved a TVL of $90 million, ranking among the top ten HyperEVM protocols.

(5) Focus on HypurrFi

HypurrFi is a partner in this Hyperliquid semi-annual report. We thank them for their support for this research work.

HypurrFi is not only a native lending protocol on HyperEVM, but also a complete on-chain debt service infrastructure. In addition to basic lending functionality, the protocol offers a comprehensive framework for debt management, refinancing, restructuring, and optimization, leveraging Hyperliquid's growing liquidity. HypurrFi currently offers both pooled and segregated markets across multiple assets (HYPE and its primary LSTs, Hyperliquid spot market listed assets, and stablecoins). As the issuer of the USDXL stablecoin, the protocol utilizes an overcollateralized model—primarily backed by user deposits, with a partial credit enhancement from US Treasuries purchased with protocol revenue. As of this writing, HypurrFi's TVL (including lending) stands at $300 million, with approximately $2.7 million in USDXL in circulation. HypurrFi has a clear development goal for the second half of 2025: to become the leading debt servicing infrastructure for the Hyperliquid ecosystem. To achieve this goal, the protocol plans to deploy a full suite of tools that will enable users to optimize debt management (collateral swaps, low-interest refinancing, risk management, additional features, etc.). Key development initiatives include: pawSwap: An order flow auction mechanism designed to optimize liquidation and swaps on the HyperEVM, including direct access to the Hyperliquid Core order book. Swype Card: A payment card product that allows users to spend directly from their HypurrFi positions without having to sell their assets in advance. Currently supporting over 100 million merchants worldwide, the platform plans to expand into corporate discounts, loyalty programs, and co-branded cards. New Vaults and Segregated Markets: Developed in conjunction with undisclosed partners, these offerings will provide efficient yield strategies for developers, funds, and end users. Hyperscan: A planned refactoring of the developer-friendly environment to simplify the creation and integration of new products on the HyperEVM.

Institutional Access Channel: Establish a compliant path for teams and foundations to deploy funds into the HyperCore and HypurrFi markets.

3. HYPE Token Analysis

(1) Token Holdings, Trading Volume, and Price Performance

Hyperliquid’s HYPE token launched on November 29, 2024, with the largest airdrop in crypto history. The token enjoyed a bull run in December, reaching a new all-time high of $35 for the first time, an increase of nearly 1,200%.

Now, let’s evaluate how the positive indicators for Hyperliquid and HyperEVM translate into the performance of the HYPE token in the first half of 2025. Here are key token metrics from January 1st to June 30th, 2025: Number of Token Holders: +100% (from 70,000 to 140,000) Weekly Trading Volume: +70% (from ~$1.4 billion in January to ~$2.4 billion in June) HYPE Price: +64.8% (from $24.12 to $39.76) HYPE closed at $39.76 at the end of the period, reaching a new all-time high. This price also reached our first target price set in our valuation model published on March 15th, 2025 (when the token price was only $14.20). Note: We are updating our valuation model to incorporate significant progress in Hyperliquid since our initial analysis. (2) HYPE’s Outperformance Next, we compare HYPE’s performance with major crypto assets. In the first half of 2025, HYPE not only outperformed its peers but was also the only large-cap token to achieve positive returns, aside from BTC (up 16%). However, HYPE's outperformance was entirely concentrated in the second quarter. In the first quarter, HYPE underperformed its peers, falling 51%, compared to an average decline of 30% for the benchmark group. The first quarter's underperformance was primarily driven by overall market weakness and macro uncertainties, including tariff concerns and heightened geopolitical tensions. Furthermore, HYPE's performance was particularly strong in the fourth quarter of 2024, making a short-term correction logical. However, in the second quarter, market conditions improved with the 90-day tariff suspension, easing global tensions, and an improved regulatory environment for cryptocurrencies. HYPE took full advantage of this new environment, surging 206%, while its peers rose an average of only 25%.

This rebound was also supported by the accelerated buybacks by the Assistance Fund, which played a key role in restoring market confidence. Notably, in June alone, the Assistance Fund repurchased an average of $2.02 million of HYPE per day. As of the time of writing, the average daily buying pressure was approximately $3 million.

(3) HYPE Revenue and Buyback Mechanism

Unlike most DeFi protocols today, the Hyperliquid team does not directly profit from platform activity fees. All fees go to HLP (Hyperliquidity Provider) and the Assistance Fund.

Specifically, HLP is a community treasury that allows users to participate in Hyperliquid's market making and earn returns, while the Assistance Fund is a reserve fund denominated in HYPE that aims to provide liquidity support when necessary. The team has not yet disclosed the specific allocation ratio between HLP and the support fund. However, based on public data, in recent months, approximately 92% of fees have gone to the support fund, with only 8% allocated to HLP. The support fund is implementing a HYPE spot buyback program, meaning that 92% of Hyperliquid's fees are used to purchase HYPE on the spot market. This revenue is distributed directly to token holders and supports the price of HYPE. In just a few months, Hyperliquid has become the most profitable protocol in the crypto industry. Since the beginning of 2025, its revenue has reached $406 million (over $810 million annualized), second only to Tether and Circle. Note: Based on data from the last 30 days, current annualized revenue is approximately $1 billion, and the price-to-earnings ratio (P/E) based on circulating supply is approximately 15 times. In the first half of 2025, Hyperliquid's fee income increased significantly, from approximately $1 million per day at the beginning of the year to an average of over $3 million currently, with a peak exceeding $5 million. The Assistance Fund currently holds over $1.22 billion worth of HYPE tokens, with a cumulative acquisition cost of just over $400 million. At the current pace, Hyperliquid's repurchase mechanism can repurchase approximately 13% of the circulating supply of HYPE annually. With the implementation of HIP-3 and the expansion of Builder Codes (currently represented by Phantom), protocol revenue will grow mechanically, further strengthening this model. 4. Hyperliquid Major Events Review As expected, many important events have occurred over the past six months. The following are key developments for Hyperliquid and the HyperEVM since January 2025: January 8, 2025: Validator Node Expansion Hyperliquid uses a Proof-of-Stake (PoS) consensus mechanism, requiring validators to maintain network security. Initially, the protocol had only four validators, raising concerns about centralization. In response to these concerns, the team announced in early January that they would increase the number of validators to 16, with plans to continue expanding to enhance decentralization. As of this writing, there are 27 validators (25 of which are active), a significant improvement from the initial four. January 18, 2025: TRUMP Token Launches The January 18, 2025, launch of the Trump Token marked a pivotal moment for the crypto world. This controversial meme coin, launched by the US presidential team, generated significant trading volume, followed by the equally controversial Melania Token. The key takeaway from these events was the significant shift in trader sentiment. Hyperliquid became the first platform to list these two meme coins in perpetual contracts, hours ahead of major centralized exchanges. This resulted in two consecutive days of record-breaking trading volume: $21 billion on January 20 and $22 billion on January 21. These events solidified Hyperliquid's position as the premier trading platform for new token launches. February 14, 2025: Unit Launches A key milestone in the first half of the year was the launch of HyperUnit (Unit), Hyperliquid's asset tokenization layer. Unit initially supported deposits, withdrawals, and trading of BTC, and subsequently expanded to ETH (March 27), SOL, and FARTCOIN (May 13) over the course of the semester. By the end of June, Unit had processed over $400 million in native asset deposits and facilitated $8.4 billion in spot trading volume. Unit further integrated the PUMP token and continued preparations for the launch of tokenized stocks. We will monitor these developments in Q3—Unit's strategic importance will grow with the launch of new perpetual markets. February 18, 2025: HyperEVM Launches The launch of HyperEVM on February 18th marked a turning point for Hyperliquid. This EVM-compatible smart contract layer enables developers to deploy decentralized applications and natively leverage Hyperliquid's deep liquidity and high-performance infrastructure. The launch sparked heated debate within the ecosystem, with many considering it too sudden and even risky. The team chose a low-key launch—unlike other blockchains, with no marketing campaigns or incentive programs. Despite this unconventional approach, adoption has been impressive. Since its launch, over 400,000 accounts have been created and 11,000 smart contracts deployed. With zero incentives, HyperEVM has achieved $2 billion in organic TVL (total value locked), outperforming competitors that have invested millions to bootstrap the ecosystem. March 26, 2025: The Jelly Incident It's also important to acknowledge these challenging times. The Jelly incident on March 26, 2025, nearly marked a dramatic turning point for Hyperliquid. On that day, an attacker manipulated the positions of the JELLY meme coin and exploited the liquidation mechanism to launch a complex attack on Hyperliquid, resulting in a paper loss of approximately $12 million in the HLP treasury and seriously threatening the protocol's solvency. Hyperliquid responded swiftly: the team activated an oracle override mechanism to mitigate the impact and pledged to compensate affected users (excluding the attacker). This intervention raised questions about the protocol's decentralization, but it was generally believed that the team acted in the best interest of the community. Since then, additional security measures have prevented a similar incident from occurring again. May 2, 2025: HIP-3 Testnet Launches. HIP-3 opens perpetual contract market creation to the community, marking a significant step forward for Hyperliquid on its path to decentralization. By staking 1 million HYPE as collateral, any participant can permissionlessly propose and deploy new markets (indices, stocks, meme tokens, and more). Market creation rights are allocated through a Dutch auction held every 31 hours. The highest bidder has full control over market creation, including oracle selection, leverage limits, fee setting, collateral acceptance, and earns up to 50% of market creation fees. HIP-3 leverages incentives to foster new business models around market creation, accelerating market product diversification while ensuring protocol security. Currently in the testnet phase, the initiative is expected to launch on mainnet soon. May 5, 2025: Staking Tiers On May 5, Hyperliquid launched "Staking Tiers," allowing HYPE stakers to enjoy trading fee discounts based on their staked amount. Bronze tiers receive a 5% fee reduction starting with a stake of 10+ HYPE tokens, while Diamond tier users receive a 40% discount for stakes exceeding 500,000 HYPE tokens. This initiative significantly increases the utility of the HYPE token, providing a strong incentive for traders to accumulate and stake more tokens for greater returns. May 5, 2025: "Home of Stablecoins": USDT0 and USDDe In the first half of 2025, Hyperliquid expanded its stablecoin product line by introducing Ethena's USDe (May 5) and USDT0 (May 9). Both stablecoins are now available on the Hyperliquid exchange and HyperEVM. Previously, USDC was Hyperliquid's primary stablecoin. The addition of these new options sends a positive signal, helping to optimize risk diversification and reduce reliance on USDC. This move also promotes the development of the DeFi ecosystem on HyperEVM, attracting new users who prefer USDT0 or USDDe, and further consolidating Hyperliquid's competitive advantage based on deep liquidity. June 17, 2025: HYPE Corporate Treasury. The first half of the year also saw the rise of the HYPE corporate treasury, a strategy that emulated Michael Saylor's pioneering investment in Bitcoin at MicroStrategy. In the first half of 2025, Eyenovia (NASDAQ: EYEN) and Lion Group Holding (NASDAQ: LGHL) began adding HYPE to their corporate reserve holdings. Following the semester, Sonnet BioTherapeutics (NASDAQ: SONN), Hyperion DeFi (NASDAQ: HYPD), and Nuvve Holding Corp. (NASDAQ: NVVE) followed suit. This suggests that multiple public companies are actively allocating HYPE as a strategic reserve asset—a status rarely achieved by any asset class in financial history. HYPE thus becomes the fourth cryptoasset, following BTC, ETH, and SOL, to achieve enterprise treasury-level adoption. Wall Street's heavy investment in HYPE is logically sound: Hyperliquid is one of the most profitable commercial entities in history, with annualized revenue exceeding $800 million and 97% of its revenue allocated for daily HYPE repurchases. July 5, 2025: CoreWriter Launches. The Read Precompiles contract, deployed on mainnet on April 28th, achieved a breakthrough, allowing HyperEVM developers to access HyperCore data through smart contract groups, opening up new use cases for dApps. However, this is only the first step. Starting July 5th, CoreWriter (formerly Write Precompiles) also launched on HyperEVM. Developers can not only read HyperCore data but can now also write to it, enabling trustless, bidirectional communication between HyperCore and the HyperEVM.

This advancement marks the full composability of the two-layer architecture, paving the way for a new generation of innovative applications.

July 8, 2025: Builder Codes (Phantom Integration Use Case)

While Builder Codes wasn't launched this semester (initially announced in October 2024), its potential truly became apparent with the launch of Phantom Perps.

As you know, Hyperliquid's core advantage lies in its unparalleled on-chain liquidity—a competitive barrier that is extremely difficult to replicate. This is precisely the value of Builder Codes: it allows any application to connect its interface directly to the Hyperliquid backend, expanding the protocol's user base while sharing revenue with partners. Phantom Perps, launched on July 8, 2025, is a prime example: wallet users can trade over 100 perpetual swap pairs without leaving the app. Since its launch, this integration has generated $1.2 million in Builder Codes revenue, $1.3 million in referral income, and introduced over 20,000 new users to the ecosystem. We estimate this integration will generate $15-30 million in annualized revenue for Hyperliquid. With Phantom's success, we expect more applications to join the program in the coming months. 5. Conclusion In the first half of 2025, Hyperliquid has undeniably solidified its leadership in the decentralized perpetual swap market, demonstrated by significant growth in on-chain metrics, accelerated adoption of the HyperEVM, and a rapidly expanding native application ecosystem. Supported by a unique buyback model and record revenue, the performance of the HYPE token highlights the robustness and sustainability of the protocol's economic framework. From a broader perspective, Hyperliquid has blazed a new trail while strengthening its liquidity and infrastructure moats through the development of HIP-3, CoreWriter, and Builder Codes. These developments, combined with the onboarding of strategic partners like Phantom and the rise of native protocols on the HyperEVM, have laid the foundation for strong growth in the network's second half of the year. Of particular note, HIP-3 will serve as a key catalyst—any user holding $1 million in HYPE can deploy perpetual contract pairs and earn up to 50% of trading fees. Participants don't need to build infrastructure; they can focus on launching perpetual products with strong market demand, and Hyperliquiquid will handle the rest. The Phantom integration has proven to be a significant success story for both parties, with this single integration expected to generate 2%-4% annualized cash flow growth. If dozens of wallets or front-ends follow suit, the potential impact could be multiplied. With the U.S. Securities and Exchange Commission's (SEC) new initiative to bring more asset classes on-chain, Hyperliquid is poised to expand its existing support for a wider range of asset classes, unlocking further growth opportunities. This report is our first semi-annual analysis focused solely on Hyperliquiqui. Given the rapid pace of innovation and evolving metrics, we've decided to transition to a quarterly reporting format starting next year to provide more timely and insightful analysis of significant ecosystem developments. Finally, we would like to express our special thanks to HypurrFi, the sponsor of this report, for their support and commitment to building a top-tier debt servicing infrastructure for the HyperEVM. Their contributions embody the collaborative spirit that has always been one of Hyperliquid's core strengths.