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THE DAILY INDEX

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MARKETS & BUSINESS

TLDR Crypto

HYPERLIQUID: THE HYPEROPTIMIZED ORDER BOOK L1 (1 HOUR READ)

Hyperliquid, a perpetual trading protocol with an L1, has become a disruptor in the trading space, with over $300 billion in cumulative volumes and over $1 billion in daily volumes. Its HyperBFT consensus mechanism can handle a substantial amount of orders per second, and its fully onchain order book positions it as an “onchain Binance,” bridging CEX efficiency with DEX transparency. With a comparative valuation of around $5 billion and plans for further development like an EVM-compatible layer, Hyperliquid is poised to capture significant market share in the DeFi derivatives market.

THOUGHTS AROUND IBIT OPTIONS

This thread analyzes the approval of IBIT options in the context of existing crypto options markets. Deribit trades $40 billion notional monthly in BTC options compared to CME's $3B. Though a short squeeze is unlikely, increased derivatives volumes, volatility dampening due to structured products, and an altcoin boom could occur if crypto lending returns. The author predicts compression of basis spreads in Bitcoin futures vs spot and highlights the complex interplay between traditional finance and crypto-native markets.

Q4 PREDICTIONS FOR AIRDROP LAND

The EIGEN and liquid restaking tokens airdrop narratives have primarily ended. Other restaking protocols like Symbiotic and Karak might offer moderate-sized rewards. A good play might be to use a restaking protocol for Babylon using Bitcoin, like Bedrock or Mezo. There might be some potential in gaming projects, especially those with NFTs that have been out for a few years but are already written off as dead. Hyperliquid is expected to be great, while Scroll will likely be disappointing.

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