TL;DR
- Hyperliquid and Aster registered protocol revenue increases of up to 30% in 24 hours.
- Record trader activity is linked to the sharp drop in the price of Hyperliquid’s HYPE token.
- Experts, like Arthur Hayes, warn about potential market instability due to the imminent unlock of $11.9B in HYPE tokens.
The volatility of the crypto market has once again shown that this instability can be profitable for some key players, particularly in the DeFi segment. Evidence of this is the turbulent movement this Friday, when protocol revenues on perpetual decentralized exchange platforms (Perp DEX) soared, highlighting the central role these protocols play in risk management and speculation.
Some platforms, such as Hyperliquid, Aster, and EdgeX, had a notable day, with an increase in trader activity and, consequently, in their Perp DEX revenue streams from volatility.
One of the segment leaders, Hyperliquid, reported an impressive protocol revenue of $4.24 million in 24 hours, representing a 13.3% increase. In a similar trend, its competitor Aster registered a daily revenue growth of 30%, reaching $3.17 million.
This phenomenon underscores how market fluctuation translates directly into greater trader engagement on these platforms, positively impacting Perp DEX revenue metrics due to volatility.
The Warning from Arthur Hayes and the HYPE Challenge
But the coin has two sides, and despite the boom in operating profits, the current volatility is unforgiving. Market observers’ attention has focused on the dynamics of Hyperliquid’s native token, HYPE.
Arthur Hayes, former CEO of BitMEX, expressed concern about the potential instability generated by upcoming token unlocks. Hayes pointed out that approximately $11.9 billion in HYPE tokens will be released in the next 24 months, an event that could pressure the asset’s value.
According to CoinMarketCap data, market figures reflect this tension. Despite the platform’s record Perp DEX revenues from volatility, the HYPE token, with a market capitalization of $11.15 billion, suffered a price drop of 14.84% in the last 24 hours.
However, in a pattern that repeats itself in scenarios of panic or euphoria, the token’s trading volume soared by over 100%, indicating substantial and speculative investment activity.
This pattern of surging protocol revenues during instability has been observed in moments of high volatility, such as the first quarter of 2024. Experts agree that these token unlock periods are key catalysts for market adjustments.
In this environment, regulatory clarity remains an essential element for the DeFi industry to adapt to these cyclical changes without compromising investor confidence.
