The layer-1 chain needs more than a successful perpetuals exchange to justify the HYPE token’s lofty valuation, according to the asset manager.
Layer-1 blockchain network Hyperliquid needs to bootstrap a robust developer community to sustain its native token’s roughly $25 billion market capitalization, asset manager VanEck said in a Jan. 6 research note.
Hyperliquid has become one of the most valuable blockchains since launching its HYPE token in a November airdrop. However, Hyperliquid’s nascent smart contract platform has “yet to attract much of a developer community,” VanEck said.
“If Hyperliquid is unable to meet the growth expectations of its community, the prisoner’s dilemma facing many newly rich $HYPE holders may quickly unravel,” VanEck said.
