Hyperliquid fee generation could explode in 2025, expert says

Syncracy Capital co-founder Ryan Watkins says the recently launched layer 1 blockchain and decentralized exchange HyperLiquid could surpass its rivals in terms of fee generation next year.

The DEX platform for perpetual futures trading has attracted attention over the past few days due to speculation that hackers affiliated with the North Korea-backed Lazarus Group were spying on the vulnerability. Hyperliquid Labs has debunked claims of a potential vulnerability linked to whaling activity said to originate from North Korean hackers.

But other than that, what does Ryan Watkins, co-founder of venture capital firm Syncracy Capital and former senior research analyst at market intelligence platform Messari, say about Hyperliquid (HYPE)?

On December 27, the Syncracy Capital co-founder took to X to express his bullish sentiment towards the DEX platform.

According to Watkins, Hyperliquid could become one of the largest blockchain projects in terms of fee generation next year.

“Hyperliquid has strong potential to become the top blockchain by fees generated in 2025, largely because it vertically integrates nearly all of the most profitable businesses in crypto history: exchange (spot + derivatives) + block space (HyperEVM).

Observers say the HYPE token’s boom potential in the coming months depends on the industry’s adoption of spot and derivative offerings, as well as the appeal of HyperEVM.

According to Watkins, the missing ingredient that would see Hyperliquid “complete the holy trinity” and potentially dominate is a stablecoin.

“Stablecoin is more difficult to make in practice, but we should not be surprised if it is tried. Terra in the past and Berachain + Ethena (soon) today are doing the same thing.”

Ethena Labs recently launched USDtb, a stablecoin backed by Blackrock’s USD Institutional Digital Liquidity Fund. The startup is in partnership with tokenization platform Securitize.

Hyperliquid recorded $5.16 million in seven-day fees and revenue, according to DeFiLlama data. In comparison, Ethereum, Solana, and Tron produced more. The top protocols by fees across the ecosystem are Ethereum, led by stablecoin giant Tether. On Solana, DEX protocol Raydium, liquid staking platform Jito and meme launchpad Pump.fun are leaders in fee generation.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.