Hyperliquid announced that the team would be increasing fees by 3x for HIP-3 tokenized assets perps in their next upgrade.
Jeff Yan, founder of Hyperliquid, said that the fee increase will only be for specific assets listed on their website and not as a whole. The team noted that currently the HIP-3 deployers are in ‘growth mode,’ meaning the fees are discounted by 90%.
As the segment matures the project plans to decrease the discount. Deployers will be able to boost their fees to up to 3x. The above upgrade did not have a shared timeframe.
For Ryan Watkins the founder of crypto-focused venture company Syncracy Capital the move will be a net positive in terms of revenue.
Many people do not factor in the HIP-3 revenue growth acceleration that comes with fee increases. Although I’m not expecting dramatic changes over night, I think that gradual fee increases will be in store, and even the smallest changes can lead to multiples of more revenue.
At the moment, revenue is split 50/50 between deployers and protocol fees. TradeXYZ will receive $50 million for its deployer, and $50 million to Hyperliquid in protocol fees.
This funds is split 99% to the Assistance Fund for HYPE and 1% to HLP.
Analyst Tobias Reisner said that the upgrade would also be positive for HYPE.
This would indicate a very positive trend. Fees = HYPE burnt.
Watkins says that even a small fee increase would have a huge impact on HIP-3 revenues.
How will a hike in fees affect Hyperliquid’s adoption?
Critics were worried that traders would look to find cheaper venues for trading. Analyst Wazz said that the increase was a’significant one. “insane” Hyperliquid would lose its pricing advantage.
I think that HIP-3’s low fee structure is the reason they have been able to attract so much money and remain competitive. However, in many cases HIP-3 loses out on some deals because brokers like IBKR are more successful.
HIP-3 trading volume accounts for 60% of the total Hyperliquid volume. This means that it is also driving revenue. This segment is mostly dominated by TradeXYZ.
It remains to be determined whether or not the upgrade will affect the above-mentioned traction, as critics claim.
Hyperliquid also released its performance report for Q2, demonstrating a solid revenue recovery of $57.5M. It was the highest level since November last year. HYPE actually decoupled itself from the broader markets and achieved a record-high gain of 79%.
In July the revenues dropped from $48M to just $38M. This affected the entire pace of work. HYPE buyback program.
The coin was up by 13%. However, a short term bullish trend could be confirmed only if the $60 mark (50 day EMA) were to be reclaimed.
Final summary
- The HIP-3 Market will be replaced by Hyperliquid, which offers a 90% discount. However, the price of this market is going to increase 3x.
- HYPE returned 13% but a longer-term short-term upward trend depends on reclaiming the $60.
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Source: ambcrypto.com
