Hyperliquid has recently launched HyperEVM on testnet, a move that could potentially enhance the blockchain’s smart contract capabilities. This update introduces general-purpose programmability to the ecosystem while maintaining the platform’s low-latency trading experience. Hyperliquid’s HyperBFT consensus ensures the security of HyperEVM transactions, allowing on-chain execution without the need for external validation layers.
The initial mainnet release of HyperEVM includes HyperEVM blocks built as part of L1 execution. Prior to the mainnet rollout, the testnet phase will be utilized to gather feedback and enhance developer tooling. Future upgrades will incorporate general ERC-20 transfers and precompiles.
HYPE, Hyperliquid’s native token, will function as the gas token for HyperEVM. Additionally, a new system contract called WHYPE has been deployed to support DeFi applications and facilitate native spot transfers between Hyperliquid’s L1 and HyperEVM. A bug bounty program will offer mainnet-level rewards for identifying vulnerabilities during this phase to encourage security research.
The launch of HyperEVM aligns with Hyperliquid’s continued market growth. Since its launch in November 2024, HYPE has surged by approximately 553%, surpassing the performance of other cryptocurrencies. The platform’s success can be attributed to its pricing model, which distributes profits to liquidity providers and a community-managed fund.
Hyperliquid garnered significant attention following its billion-dollar airdrop, one of the largest in the history of crypto. The platform’s appeal to traders lies in its ability to offer a centralized exchange-like trading experience alongside being a decentralized exchange. Notably, the Assistance Fund sets Hyperliquid apart from many DEXs, serving as a safety net in the event of security breaches or the need to boost liquidity.
According to a recent report by K33 Research, Hyperliquid captured 55% of the 7-day trading volume for perpetual DEXs. Moreover, the platform’s open interest has increased to 47% of OKX’s levels and 13% of Binance’s levels, indicating its growing prominence in the market.
Overall, Hyperliquid’s launch of HyperEVM on testnet marks a significant milestone in expanding the platform’s capabilities and solidifying its position in the crypto space. With a focus on security, usability, and market growth, Hyperliquid continues to innovate and drive adoption of blockchain technology.