VanEck: Hyperliquid Hasn't Attracted a Lot of Developers Yet, Its Market Value at Risk

Layer-1 blockchain network Hyperliquid has become one of the most valuable blockchains with a market capitalization of about $25 billion since it issued HYPE tokens via an airdrop in November, according to a Jan. 6 research report from asset management firm VanEck. However, VanEck noted that Hyperliquid's nascent smart contract platform “has not yet attracted a significant number of developers”. VanEck warned that “the prisoner's dilemma faced by many up-and-coming HYPE tycoons could quickly unravel if Hyperliquid fails to meet the growth expectations of its community.” And added: “Once again, we are seeing another Icarus-esque story of cryptocurrency hubris.” (Icarus is a Greek mythological figure who fell because he flew too high, a metaphor for failure due to pride and arrogance.)