RyanWatkins_

It appears @ethena_labs is also testing USDe markets on HIP-3 testnet 👀

h/t @mlmabc

Perps are one of the few true financial innovations crypto has produced, and people are underestimating how much the market could expand as we begin “perpifying” new asset classes.

Could easily become a $100B+ revenue opportunity within 5 years.

Hyperliquid.

$HYPE pumping so hard these days it has people thinking revenue is a new “meta”

Always humors me when people suggest an asset is “crowded” without reference to valuation — saw it with $SOL from 2023-2024, and now $HYPE.

1) There’s a big difference between many people owning something and many people being properly sized for the opportunity. Dabbling ≠ Conviction.

2) This creates scenarios where the market can still dramatically underprice an asset, despite it dominating Twitter mindshare. Attention ≠ Allocation.

Bonus: Sometimes hot assets accrue scarcity premiums in excess of fundamentals because there are so few high-quality ideas you can size into. When opportunities are scarce, capital concentrates in the winners.

Always humors me when people suggest an asset is “crowded” without reference to valuation — saw it with $SOL from 2023-2024, and now $HYPE.

1) There’s a big difference between many people owning something and many people being properly sized for the opportunity. Dabbling ≠ Conviction.

2) This creates scenarios where the market can still dramatically underprice an asset, despite it dominating Twitter mindshare. Attention ≠ Allocation.

Bonus: Sometimes hot assets sometimes accrue scarcity premiums in excess of fundamentals because there are so few high-quality ideas you can size into. When opportunities are scarce, capital concentrates in the winners.

State of crypto markets

I’m skeptical Pump can raise $1B, but if they do, it might actually spark a new ICO boom.

Insane levels of group think on the timeline about SOL being cooked because of Pump “extracting” from the ecosystem.

Just as the internet capital markets thesis approaches the inflection point of the S curve, with tokenized assets about to balloon and a new ICO era inbound.

It may be too late for CEXs to buy 5% - 10% of the $HYPE supply, but it’s not too late for them to launch sub-exchanges via HIP-3 and split the fees 50/50 with Hyperliquid.

Sometimes the winning move isn’t outcompeting, but outcooperating.

It may be too late for CEXs to buy 5% - 10% of the $HYPE supply, but it’s not too late to launch sub-exchanges via HIP-3 and split the fees 50/50 with Hyperliquid.

Sometimes the winning move isn’t outcompeting, but outcooperating.

Ironic how Hyperliquid and Ethena became two of the most successful new DeFi projects this cycle in part because they were not fully decentralized.

The key insight behind both was simple: users value attributes like permissionless and transparency far more than prepper-level decentralization. By selectively sacrificing the latter, they were able to deliver more compelling products with greater scale.

Expect many more valuable onchain products to emerge from teams willing to operate in the pragmatic middle ground of the centralization ↔ decentralization spectrum.

Ironic how Hyperliquid and Ethena became the two most successful new DeFi projects this cycle in part because they were not fully decentralized.

The key insight behind both was simple: users value attributes like permissionless and transparency far more than prepper-level decentralization. By selectively sacrificing the latter, they were able to deliver more compelling products with greater scale.

Expect many more valuable onchain products to emerge from teams willing to operate in the pragmatic middle ground of the centralization ↔ decentralization spectrum.

Ironic how Hyperliquid and Ethena became the two most successful new DeFi projects this cycle in part because they were not fully decentralized.

The key insight behind both was simple: users value attributes like permissionless and transparency far more than prepper-level decentralization. By selectively sacrificing the latter, they were able to deliver more compelling products with greater scale.

Expect the next wave of valuable onchain products to emerge from teams willing to operate in the pragmatic middle of the centralization ↔ decentralization spectrum.

Developer momentum in the Hyperliquid ecosystem is the strongest I've seen in a long time, but you wouldn't know it only looking at the HyperEVM.

Expect an explosion of sub-exchanges and trading platforms on Hyperliquid in the quarters ahead using builder codes and HIP-3.

Developer momentum in the Hyperliquid ecosystem is the strongest I've seen a long time, but you wouldn't know if you were only looking at the HyperEVM.

Expect an explosion of sub-exchanges and trading platforms on Hyperliquid in the quarters ahead using builder codes and HIP-3.

The rebirth of ICOs was one of my core 2025 theses.

Expect the trend will only accelerate with regulatory clarity in the U.S., ultimately creating space for the onchain economy to move beyond memecoins as the dominant mode of “capital formation”.

We are so back.

A Letter to Hyperliquid and Solana Bulls

Solana bulls:
Respect the rise of Hyperliquid. It is the most credible competitive threat to the internet capital markets thesis today. Study strategic power and economic potential of enshrining an orderbook exchange as a blockchain public good. Dismiss it at your peril. Don’t become the ETH maxis you once ridiculed.

Hyperliquid Bulls:
Respect what Solana’s built. Solana is the most performant and battle tested globally distributed system in production today. The Solana ecosystem is home to a diverse array of applications beyond DeFi, ranging from DePIN to AI. It also has unrivaled institutional and enterprise momentum. Do not treat it as if it’s an ecosystem in relative decline like Ethereum.

To Both Communities:
Do not underestimate Ethereum. Yes, we all know Ethereum is losing share, but the market is still sending a signal that Ethereum is the leader, whether right or wrong. It is still home to the most mature DeFi protocols and is the leading asset issuance platform. The race is far from over — do not slow down until victory is achieved.

Enjoy the rest of the holiday weekend.

Hyperliquid vs. Solana will be the cryptoeconomy’s defining battle in the coming quarters as U.S. equities move onchain.

The winner will become the industry’s next $100B-$500B project and may very well transform capital markets forever.

Also chance pie is big enough for both.

Best growth story in crypto.

Hyperliquid is eating CEX open interest with little signs of slowing down.

Best growth story in crypto.

Hyperliquid.