Here’s Why Hyperliquid is Trending Despite Price Decline

Since the start of 2025, the crypto market has gone through tough times, with major crashes that wiped out billions in leveraged positions and left many investors in fear and uncertainty. Despite the price decline in Hyperliquid’s token, HYPE, the L1 DEX blockchain is making waves.

Hyperliquid is among the most popular L1 blockchains because it offers low transaction fees and a seamless trading experience. It is also focused on perpetual futures contracts. 

Hyperliquid Adds More Features

According to an official announcement, the DEX now supports native multi-sig transactions. This feature lets users set up multiple wallets to jointly approve transactions for an address.

The announcement further noted that on most chains, multi-sig is done through smart contracts. While users can deploy multi-sig contracts on HyperEVM, Hyperliquid offers multi-sig directly on the L1. This adds extra security to order book trading, staking, validating, and asset custody.

The multi-sig is helpful for anyone who does not want one private key to control their address, such as institutions, big traders, validators, custodians, or bridge operators. With agent addresses and delegated permissions, security can be customized to require different signatures based on the transaction type. 

Additionally, the exchange recently introduced “Unit,” a decentralized asset tokenization layer for ”all of finance” built on Hyperliquid. Unit allows easy deposits, withdrawals, and trading of many assets. The integration of Unit allows major spot crypto tokens to move between Hyperliquid and their blockchains. 

The newly launched Unit promises to unlock user experience, including deposit or withdrawal of BTC from a self-custodial wallet or exchange account, with ETH and SOL coming soon and a unified trading experience. 

Hyperliquid Rolls Out EVM

On February 17, 2025, the L1 blockchain platform launched a bug bounty program alongside the rollout of HyperEVM, its general-purpose Ethereum Virtual Machine (EVM).  Unlike other EVMs, HyperEVM is not a separate chain. It shares the same security as Hyperliquid’s L1, enabling it to interact with the network’s native components directly. 

With this setup, Hyperliquid’s HYPE token can be used like the gas token on the EVM. This will allow users to trade project tokens with low fees and high liquidity on the native spot order book while efficiently using the same token on EVM-based apps, according to the platform. 

As part of its launch, the platform launched a bug bounty program to reward developers who find bugs in the system. The program provides rewards from less than 10,000 USDC to almost 1 million USDC, depending on how serious the vulnerability is. The project will evaluate severity based on an incident’s potential impact and likelihood. 

HYPE Bleeds Red

Despite the launch of the HyperEVM, the HYPE was down 8%%, hovering at around $23, according to data from CoinGecko. The token has a market capitalization of over $7.9 billion and a 24-hour trading volume of over $288.2 million. 

Meanwhile, Hyperliquid’s total value locked (TVL) hit $677 million in February, more than a 300% increase from December 2024. The platform gained attention after one of the largest airdrops in DeFi history. The project distributed 28% of its token supply to users, worth billions of dollars.