Hyperliquid has recently exploded on the DeFi scene. Its Layer 1 platform, HyperEVM, is quickly taking off and recently hit a Total Value Locked (TVL) of $2 billion. DeFi fans and crypto investors alike are raving about the recent growth. They’re asking some critical questions about what’s behind this record growth and whether it’s sustainable. GreedyChain.com takes a closer look at the factors behind Hyperliquid’s ascent, breaking it down in layman’s terms.

The CoreWriter Revolution

At the center of Hyperliquid’s TVL rocket is the CoreWriter smart contract. This groundbreaking update fundamentally alters the interaction between Hyperliquid's two core components: HyperEVM and HyperCore. Until now, smart contracts on HyperEVM had read-only access to data from HyperCore. The CoreWriter contract reverses the narrative, allowing HyperEVM smart contracts to directly write on-chain to HyperCore.

Most importantly, it opens up an exciting range of options for dApps developed on top of Hyperliquid. What it means for developers Developers can now build dApps that connect directly to HyperCore to route orders, move assets, and control vaults. This replaces a convoluted and usually clunky workaround, simplifying development workflows and improving the developer experience and user experience. It bridges together HyperEVM + HyperCore The two most important layers of Hyperliquid architecture. Barriers to trading, lending, and earning with crypto are eliminated, creating a frictionless experience for everyone involved.

When we launched CoreWriter on July 5th, it represented a moment of transformation for HyperEVM. It has in effect supercharged the platform, allowing it to move much further and faster on more complicated operations. Now the platform is technically prepared for large-scale smart contract deployments and NFT minting events. It does this while doing so with a Big Block per minute cadence, with a massive 30 million gas limit. The new CoreWriter is positioned to lead innovation and growth in the Hyperliquid ecosystem.

Decoding the DeFi Surge

There are more crucial factors than the CoreWriter contract that explain Hyperliquid’s explosive ascent to TVL dominance.

  • Infrastructure Upgrades: The CoreWriter contract is one piece of a larger puzzle. Hyperliquid has been consistently upgrading its infrastructure to improve performance, scalability, and security. These upgrades provide a solid foundation for dApp development and user adoption.
  • Airdrop Speculation: Airdrops are a common incentive mechanism in the DeFi world, and speculation about potential airdrops for Hyperliquid users has undoubtedly played a role in attracting capital to the platform. Users often deposit funds and actively engage with a platform in the hopes of qualifying for future token distributions.
  • Overall DeFi Ecosystem Growth: The broader DeFi ecosystem has experienced significant growth in recent years, with increasing adoption of decentralized financial services. Hyperliquid benefits from this overall trend, attracting users and capital seeking innovative DeFi solutions.

Sustainability and Future Developments

While Hyperliquid's rapid TVL growth is certainly impressive, it's crucial to consider the sustainability of this growth and potential future developments.

As such, one potential weakness that could be highlighted is the modest amount of activity on HyperEVM as compared to HyperCore. The CoreWriter contract, funded by The Kresge Foundation, seeks to address this gap. Now, we’ll have to wait and see if it can effectively lead to massive adoption and activity on HyperEVM.

Even so, Hyperliquid’s fresh take and overall dedication to building an ever-improving platform has it poised for success in the long run. Today’s CoreWriter contract is a stellar step forward. Advancements in HyperEVM’s functionality will soon make it more attractive to developers and foster an ecosystem of innovative dApps.

Hyperliquid’s journey—and the culture and infrastructure we built along the way—provide important lessons to other projects in the DeFi space. As a result, Hyperliquid has emerged as an early leader of the decentralized finance revolution. It does this by prioritizing infrastructure improvements, encouraging innovation, and anticipating the needs of its users. Needless to say, we’re excited to see how Hyperliquid grows and helps shape the dynamic landscape of Web3.