Decentralized crypto exchange HyperLiquid distributed its native token, HYPE, spurring demand that saw the price jump to $4.18 from an initial $3.2 and lifting the fully diluted value (FDV) to $4.2 billion
There are 333 million of the planned 1 billion tokens in circulation after the airdrop, giving a market cap of around $1.4 billion. Trading volume topped $165 million during the first hour of trading.
Of the total supply, 38.88% has been allocated to future emissions and community rewards and 23.8% is set aside for current and future core contributors.
The token can be staked to secure HyperBFT, the proof-of-stake consensus algorithm that powers the platform. It can also be used to pay transaction fees and create decentralized finance (DeFi) applications.
Users were eligible for the airdrop after earning “points” over a six-month period that ended in May. Airdropped tokens typically face immediate sell pressure as airdrop hunters attempt to extract maximum value, however the signs are that demand for HYPE has outstripped supply, with strong momentum to the upside.
The HYPE/USDC order book is maintaining a significant amount of liquidity with 5% market depth, standing at around $4 million on both sides.