Decentralized crypto exchange HyperLiquid has airdropped its native token, HYPE, spurring demand that has pushed the price to $4.18 from an initial $3.20 and raised the fully diluted value (FDV) to $4.2 billion. Following the airdrop, there are 333 million of the planned 1 billion tokens in circulation, giving it a market cap of about $1.4 billion. Trading volume exceeded $165 million during the first hour of trading.
Of the total supply, 38.88% has been allocated to future issuance and community rewards, while 23.8% is reserved for current and future core participants. 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 build DeFi applications.
Users became 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.
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