Hyperliquid's HYPE token has surged over 300% in just two months, reaching an all-time high in June 2025, driven by increasing usage of its decentralized exchange (DEX) and strong investor interest. Hyperliquid has become a major player in the decentralized perpetuals market, processing over 70% of DEX perpetual volume. The platform reinvests 97% of its protocol fee revenue into HYPE buybacks, aligning incentives with growth. Launched in 2023 without external funding, Hyperliquid aims to combine the advantages of decentralization with the speed of centralized exchanges. It currently operates with only 21 validators, raising concerns about decentralization. Despite a massive valuation of $38 billion, market analysts suggest that the token could still present long-term value, particularly as the DEX gains traction. With only 34% of its token supply circulating and substantial community rewards set aside, the future of HYPE appears promising, although caution is warranted given the risks of centralization. Analysts note that while Hyperliquid leads in its sector, it still lags behind Binance's trading volumes. Overall, skepticism remains regarding the sustainability of HYPE's rapid rise amid potential market corrections.

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