VanEck warns that Hyperliquid needs to attract developers to maintain the value of the HYPE token.

In a research report on January 6, VanEck pointed out that the Layer-1 blockchain network Hyperliquid needs to establish a strong developer community to maintain its native token $HYPE's market value of approximately 25 billion. Since the launch of the $HYPE token through an airdrop in November 2023, Hyperliquid has become one of the most valuable blockchains, but its emerging smart contract platform has not yet attracted enough of a developer community. VanEck warned that if the expected community growth does not materialize, $HYPE holders may face a "prisoner's dilemma." Hyperliquid's growth is attributed to its commitment to becoming a universal blockchain that supports not only perpetual futures DEX but will also expand to other applications. However, due to the DEX being based on open-source code and its features being easily replicable, it often lacks long-term competitive barriers. Hyperliquid plans to launch an Ethereum Virtual Machine (EVM) smart contract platform in 2025, which VanEck believes is crucial for diversifying Layer 1's revenue base and supporting $HYPE's high valuation.