The cryptocurrency market has been experiencing ups and downs this month. First, TRUMP caused chaos and then CZ's pet dog sparked a PvP craze. This was followed by the exposure of shocking insider information about "First Lady Coin" and "Argentina Coin." The entire market's attention has been seized by meme coins endorsed by celebrities and governments, leaving retail investors exhausted after facing wave after wave of rug pulls.

Just then, at this delicate moment, Perp DEX, which has been on a path of continuous growth since last year's TGE, suddenly announced the launch of the HyperEVM mainnet online. It must be said that after a month of pathological weakness in the market, there is a critical need for a high-quality project that can truly build the crypto world. HyperEVM, like a "market timing master," chose to launch at this moment, quickly sparking intense discussion and attention.

What Market Sweet Spots Has Hyperliquid Hit?

Over the past month, the crypto world has entered an era of "gift collapse and joy gone awry." From "rugging" and rug pulls to PvP casinos, almost all retail investors have been battered in the hellishly difficult zero-sum games of a bull market. However, amidst this chaos, Hyperliquid has identified opportunities and consistently hit nearly every market turning point.

Ecosystem Expansion, Seizing the Initiative

In the center of one whirlpool after another is Solana, with the community's narrative of "born from meme, dies from meme" gaining significant attention. In addition, the upcoming large unlocks in March have brought even greater uncertainty to the market, causing SOL's price to drop by 30% in just one month.

Upon the announcement of the HyperEVM mainnet launch, Hyperliquid quickly became a new market hotspot. According to deBridge statistics, a significant amount of capital flowed from Solana to Hyperliquid. CoinMarketCap market data shows that HYPE's 24-hour trading volume surged by 261%. It seems that degens have truly been driven to the brink by various insider trading activities, and even without the promise of tenfold or hundredfold opportunities, they are more willing to trade on blockchains that are actively building for the future of crypto.

As the meme frenzy subsides and Solana experiences a dip, degens are beginning to look around, searching for new gold-mining ecosystems, turning their gaze towards the BNB Chain known for CZ's return and high-frequency shilling. However, reality falls short, with countless investors experiencing the embarrassment of being unable to buy in or sell out during the PVP battle, facing network congestion, page freezes, getting rugged, and encountering numerous rug pulls... Users found that the BNB Chain is far from providing the smooth user experience typically seen on Solana. The launch of HyperEVM perfectly satisfies investors' thirst for exploring new ecosystems.

Related Read: "CZ No Longer Shilling Memes, Can BNB Chain Become the 'Next Solana'?"

Meanwhile, in the DeFi sector where Hyperliquid resides, the real-time performance requirements for high-frequency trading pairs on the blockchain are becoming increasingly prominent. In this race, Monad has always been seen as Hyperliquid's competitor. This time, Hyperliquid launched its EVM even before Monad released its testnet. And Monad? Despite high market expectations, it has not even launched its token yet. Faced with this move by Hyperliquid, Monad barely had a chance to strike back and instead had its early market attention and liquidity siphoned away.

Related Read: "Battle of the Blockchain Titans: MegaETH, Hyperliquid, and Monad - Who Will Lead the Future?"

Sector Rotation: Seizing the Opportunity

Following a significant pullback in SOL, the price of ETH is gradually recovering. Since many DeFi protocols (such as Uniswap, Aave, Compound, etc.) require ETH as the base asset for trading pairs, collateral, or liquidity providers, a rising ETH price means that the ETH assets in these protocols are also appreciating, boosting investor confidence and attracting more funds into the DeFi sector, thus increasing overall DeFi market activity and trading volume. Additionally, the entire DeFi market is shifting towards stable, positive yields, and this upgrade by Hyperliquid is likely to bring about more opportunities to earn liquidity rewards.

On the afternoon of February 18, when the HyperEVM launch announcement was made, according to CoinGecko data, Hyperliquid's native token HYPE saw a rapid price surge from $1.25 to $1.45 within the first hour. The trading volume during this period spiked to 2.3 million HYDRA tokens. Additionally, other DeFi tokens also saw similar price increases, such as AAVE rising from $105 to $112 and Compound (COMP) rising from $75 to $82. The market cap of HYPE also increased by 15.2% in the first hour after the announcement, reaching $345 million. The rapid price fluctuation and market cap growth indicate market confidence in Hyperliquid's development and its potential impact on the DeFi ecosystem.

On the other hand, the AI sector, which has been on fire since the end of last year, has been lukewarm since being drained by TRUMP. However, the newly launched HyperEVM, with its high throughput and low latency characteristics, is very suitable to be an ideal platform for AI-driven trading strategies. In the narrative cycle of AI + Crypto, the EVM launch of Hyperliquid may indirectly impact AI-related tokens, especially DeFAI projects with the most practical application value in the current AI sector, which are likely to start a new deployment cycle in the Hyperliquid ecosystem. In addition, AI projects within the existing Hyperliquid ecosystem may leverage this wave of attention to achieve a contrarian rise, making it a potential buying opportunity.

Related Read: "Hyperliquid Ecosystem AI Game Project Token FARM Launches, Market Cap Exceeds $10 Million in 1 Hour"

HyperEVM Launch: What Projects in the Ecosystem Are Worth Watching?

HyperEVM is a general-purpose EVM-compatible chain that supports Ethereum's common tools. The EVM is permissionless, allowing anyone to deploy smart contracts, and these smart contracts can directly access on-chain perpetual contracts and spot liquidity on L1.

How Beginners Can Use HyperEVM

If you want to add the Hyperliquid Network to your wallet, first go to settings and select "Add Custom Network." Next, fill in the following information: Chain ID is 999, Network Name is Hyperliquid, input the RPC URL, and choose $HYPE as the Currency Symbol. After filling out the information, click confirm, and you will see the Hyperliquid Network appear in the EVM Network list.

To bridge to HyperEVM, you can follow the steps below. First, go to the website, then click "Spot" and select $HYPE.

Next, click the "Send" button, enter the following address in the address bar: 0x2222222222222222222222222222222222222222. Finally, enter the amount and click "Send" to complete the transaction.

Currently, Hyperliquid's yield is very attractive. According to X user @0xDeFiDevin, Hyperliquid users can currently achieve up to 50% Delta-neutral yield by combining GammaSwap. By providing liquidity to the weETH/USDC pool on GammaSwap to earn 80% yield, and using half of that liquidity position to short ETH with 1x leverage on Hyperliquid to earn a 10% funding rate, individuals can effectively maximize their returns, diversify risk, and ultimately achieve a net yield of 56%.

Promising Ecosystem Projects

Many DeFi teams have been preparing to launch alongside EVM. Most "well-known" DeFi protocol types (AMMs, lending, liquidity staking, CDPs) are expected to go live with the EVM launch. These projects will enhance overall capital efficiency by allowing HYPE holders to use HYPE as collateral in lending and market protocols. Here are some of the projects that have already launched on the mainnet:

Parsec (@parsec_finance)

Purrsec is a feature-rich EVM explorer with extensive contract tagging and ecosystem integration, supporting custom layouts for different address types, and providing contract verification capabilities. Additionally, Purrsec allows users to monitor cross-chain deposits, addresses (integrating EVM and L1 portfolios), hot contracts, ecosystem tags, and L1 perpetual contract metrics. Furthermore, more features will be rolled out to highlight the unique connection between HyperEVM and Hyperliquid L1.

HyperSwap (@HyperSwapX)

HyperSwap is the native DEX of HyperEVM. HyperEVM enables users to stake tokens in the treasury to earn rewards, borrow stablecoins against collateral, or provide instant liquidity on HyperSwap as LPs. All these features seamlessly work together. Moreover, some developers have started building protocols on HyperEVM, including lending Hyperliquid perpetual contract positions, borrowing stablecoins against Hyperliquid Vault (HLP) collateral, launching meme coins in one click, and utilizing the LST protocol for asset recycling.

Kittenswap (@KittenswapHype)

Kittenswap offers a fork of Velodrome v1, introducing Velodrome's VE model and incentive mechanism. The project's TGE allocated 15,000 tokens, which represent 15% of the total supply; an airdrop allocated 20,000 tokens, representing 20% of the total supply. Currently, users can add liquidity to tokens, exchange between different tokens, and participate in the veKITTEN airdrop by earning points. Voting and governance features will be released alongside the $KITTEN token launch.

In addition, after the launch of HyperEVM, several projects will gradually go live on the mainnet. Among them, lending projects include @felixprotocol, @hypurrfi, @sentimentxyz, @HyperYieldx, @hyperlendx, @KeikoFinance, @HyperstableX, @hyperdrivedefi, and @kiblprotocol. The main liquidity staking tokens on HyperEVM include Kinetiq and Thunderhead. In addition to the aforementioned HyperSwap and KittenSwap, AMM projects also include Curve, all of which will provide incentives upon mainnet launch.

Further reading: "HyperEVM DeFi: A Roadmap to the Future"

Since its launch, Hyperliquid first broke the black box of CEX listings, and now it has once again returned to the spotlight with a more comprehensive L1 ecosystem. How will the future of the crypto world evolve? The only thing certain is that there is always great uncertainty in the specific path of evolution.

Perhaps, as Hyperliquid founder Jeff has said, cryptocurrency will reshape the operational paradigm of the financial system, and traditional finance will eventually transition to the crypto ecosystem. The focus should always be on building infrastructure with lasting value, serving as an indispensable cornerstone of the future financial infrastructure. "Regardless of how the industry evolves in a decade, these modules that are built will continue to create value."

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