HyperLiquid Launches Staking on Mainnet with $8.4 Billion Token Lockup
L1 network HyperLiquid has activated staking on its mainnet with an initial $8.4 billion token lock up and 16 validators.
HyperLiquid, a prominent on-chain perpetual exchange platform, has recently introduced native staking for its (HYPE) token on its mainnet. This new feature allows token holders to participate in blockchain activities and earn rewards for their contributions. The platform, known for its decentralized derivatives trading venue, boasts a significant 24-hour trading volume of $2.64 billion and generates over $1 million in daily fee revenue, as reported by DeFiLlama.
Upon the launch of staking, users quickly deposited around 7 million HYPE tokens within the first hour. These tokens were distributed among 16 validators on the network. Staking involves locking up cryptocurrencies to help secure decentralized networks, with users receiving rewards for their participation.
At the commencement of staking on its layer-1 blockchain, HyperLiquid confirmed a total of 300 million tokens, valued at an impressive $8.4 billion, were staked by users. The Hyper Foundation, a non-profit entity dedicated to the HYPE ecosystem, provided guidance on the staking process for vested tokens, stating:
Users can stake HYPE to a trusted validator and earn staking rewards in HYPE. Users may consider different metrics when choosing which validators to stake to, such as uptime, commission, reputation, and community contributions.
Hyper Foundation
Since its launch last month, the HYPE token has seen remarkable growth, surging from $3.57 to $27.44 at the time of writing. With a market cap of $9.2 billion, HYPE has outperformed well-established DeFi projects like Uniswap (UNI) and Litecoin (LTC).