Experts are forecasting that the platform could become a major player in fee generation by 2025, with the potential to outpace even established competitors.

A Strong Foundation for Growth

Ryan Watkins, co-founder of venture capital firm Syncracy Capital and a former senior research analyst at Messari, has expressed strong bullish sentiments about Hyperliquid’s growth trajectory. In a post shared on social media platform X, Watkins outlined the factors that could propel Hyperliquid into the upper echelons of the blockchain world.

Source: X

Watkins believes that Hyperliquid is uniquely positioned for success due to its comprehensive business model. “Hyperliquid has strong potential to become the top blockchain by fees generated in 2025,” he said. This optimism stems from the platform’s ability to integrate nearly every profitable aspect of the cryptocurrency industry, from exchange services (spot and derivatives) to blockspace via its HyperEVM (Ethereum Virtual Machine) compatibility.

Integration of Key Services

At its core, Hyperliquid combines multiple high-demand services, including decentralized spot trading and derivatives, with scalable blockspace. This synergy is expected to drive increased adoption and usage of the platform, which is crucial for fee generation. By vertically integrating these services, Hyperliquid enhances the efficiency and appeal of its ecosystem, making it an attractive option for both users and investors.

Observers point to the platform’s focus on these core aspects of crypto, including derivatives trading and the use of HyperEVM, as essential drivers of future success. Hyperliquid is not just a DEX for perpetual futures but also a robust ecosystem designed to serve a wide range of crypto market participants.

The Missing Piece: Stablecoins

Despite these promising features, Watkins notes that Hyperliquid’s journey to dominance may hinge on its ability to introduce a stablecoin to its ecosystem. “A stablecoin is harder to do in practice, but wouldn’t be surprised if it’s attempted,” Watkins stated. Stablecoins, which offer price stability, are integral to the success of many blockchain platforms, particularly those that engage in decentralized finance (DeFi) applications.

In fact, other projects like Terra and Berachain are already exploring similar initiatives with their own stablecoins. Recently, Ethena Labs introduced the USDtb stablecoin, backed by BlackRock’s USD Institutional Digital Liquidity Fund, signaling that the stablecoin race is heating up. If Hyperliquid successfully integrates a stablecoin into its ecosystem, it could solidify its position as a top contender in the blockchain space.

Recent Developments and Fee Generation

Hyperliquid’s early success in generating fees has already attracted attention. According to data from DeFiLlama, the platform has earned $5.16 million in seven-day fees and revenue. While this is a significant achievement, it still lags behind leading blockchains such as Ethereum, Solana, and Tron, which have generated higher fees. Ethereum, in particular, continues to dominate, driven by the success of stablecoins like Tether and other popular decentralized protocols.

Source: X

Despite the competition, Hyperliquid’s promising growth trajectory suggests it may be poised for a breakout in the near future. If the platform can maintain its momentum and successfully navigate challenges like the introduction of a stablecoin, its fee-generation capabilities could see a dramatic rise by 2025.

Overcoming Security Concerns

While Hyperliquid’s potential is widely recognized, it has also faced some controversy. Recently, the platform was linked to speculation involving potential hacking activity from the North Korea-affiliated Lazarus Group. However, Hyperliquid Labs quickly addressed these concerns, attributing the unusual activity to “whale” behavior rather than any real vulnerability. This swift response helped to alleviate concerns over the platform’s security, allowing it to maintain investor confidence and continue its growth.

Bottom Line

As 2025 approaches, all eyes will be on Hyper Liquid to see if it can fulfill the optimistic projections laid out by industry experts. With its strong integration of profitable crypto services, growing fee generation, and potential for innovation, Hyperliquid could emerge as a major force in the blockchain space. However, its success will depend on the platform’s ability to continue evolving and adapting to the rapidly changing cryptocurrency landscape.