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Executive Summary Hyperliquid finalized its inaugural major governance vote, electing Native Markets to issue its native USDH stablecoin. Simultaneously, the U.S. Senate advanced a comprehensive regulatory framework for digital assets, while the broader cryptocurrency sector contended with two significant security exploits impacting a decentralized finance platform and the software supply chain. The Event in Detail Hyperliquid USDH Governance Hyperliquid, a decentralized perpetuals exchange, concluded its first major on-chain governance vote beyond routine asset listings, selecting Native Markets to issue its native USDH stablecoin. Native Markets secured approximately 70% support from Hyperliquid validators and staked HYPE token holders during the week-long voting process. The decision aims to reduce Hyperliquid's reliance on external assets, particularly USDC, which currently accounts for a dominant ~$6 billion on-chain volume on the network. Established competitors, including Paxos, BitGo, Frax, and Ethena, either withdrew their bids or were outperformed by Native Markets. The USDH stablecoin will be fully backed by cash and short-term U.S. Treasuries. BlackRock and Superstate are slated to manage the off-chain reserves, ensuring yield generation and security. On-chain custody and regulatory compliance, including adherence to the GENIUS Act and global standards like MiCA, will be handled by Bridge (Stripe-owned). Native Markets has proposed an aggressive yield-sharing model, committing 50% of the stablecoin reserve yields towards HYPE token buybacks via the Hyperliquid Assistance Fund and the remaining 50% for USDH distribution through strategic partnerships. This strategic move is intended to redirect economic value from external stablecoin providers to the Hyperliquid ecosystem and its token holders. US Senate Regulatory Developments On September 5, 2025, the U.S. Senate Banking Committee released a 182-page discussion draft of the Responsible Financial Innovation Act (RFIA) of 2025. The proposed legislation outlines a comprehensive market structure for digital assets and includes provisions to combat illicit finance. Under the draft, digital asset service providers would be classified as financial institutions for purposes of the Bank Secrecy Act, subjecting them to laws related to economic sanctions, anti-money laundering (AML), customer identification, and due diligence. The RFIA draft mandates the SEC to establish "Regulation Crypto" rules, providing exemptions for certain offers or sales of ancillary assets if they do not exceed $75 million or 10% of total outstanding ancillary assets. It also establishes a safe harbor for non-fungible tokens (NFTs), stipulating that an NFT transaction would not be deemed a security offering unless it contains all elements of an investment contract, with exceptions for mass-minted items or fractionalized interests. Furthermore, software developers providing technical assistance to distributed ledger systems or decentralized finance (DeFi) trading protocols would be exempt from the RFIA. The bill also promotes regulatory innovation by proposing a "CFTC-SEC Micro-Innovation Sandbox" for testing financial products and requires a joint study on the regulatory treatment of tokenized real-world assets within 360 days of enactment. Crypto Security Incidents The crypto ecosystem recently experienced two notable security breaches. SwissBorg's SOL Earn wallet suffered an exploit resulting in the theft of approximately 192,600 SOL, valued at $41.5 million. The incident stemmed from a compromised application programming interface (API) of a third-party partner, not an internal breach of SwissBorg's platform. The loss impacted less than 1% of SwissBorg users and represented about 2% of the company's total assets. SwissBorg has committed to covering all user losses and is actively pursuing recovery efforts with white-hat hackers and law enforcement. In parallel, a widespread npm supply chain attack occurred on September 8, 2025. Attackers leveraged a phishing campaign to compromise maintainer accounts for npm, the widely used Node Package Manager. Malicious code was subsequently injected into 18 popular JavaScript packages, including 'chalk' and 'debug,' downloaded over 2 billion times. This malware was designed to intercept browser APIs and redirect crypto transactions in real-time, posing a significant threat to wallet users and dApp frontends. This incident underscores the vulnerability of centralized trust models and third-party dependencies in the broader software supply chain, affecting Web3 applications. Solana Ecosystem Performance Solana has emerged as a revenue leader in the blockchain sector, reporting an annual revenue of $1.25 billion, which is approximately 2.5 times higher than Ethereum's $523 million. This performance signals robust demand for Solana's block space. Application-level revenue surged by over $210 million in the last 30 days, with key contributors such as Pump.fun and Axiom Pro generating approximately $53 million and $51 million, respectively. The blockchain's base layer also contributed $4.56 million in on-chain fees during the same period. Market Implications The Hyperliquid USDH vote signifies a strategic shift within the decentralized exchange landscape, as protocols seek to internalize economic value by launching native stablecoins. This trend could reduce the market dominance of established external stablecoin issuers like Circle's USDC and redistribute yield to native token holders, potentially fostering greater decentralization in stablecoin markets. U.S. regulatory developments, particularly the RFIA draft, indicate a move towards a more structured and compliant digital asset market. The proposed inclusion of digital asset service providers under the Bank Secrecy Act suggests increased scrutiny on anti-money laundering and illicit finance prevention. While fostering innovation through sandboxes and NFT safe harbors, the legislation simultaneously imposes stricter compliance requirements that could reshape operational models for crypto businesses in the United States. Ongoing security incidents, such as the SwissBorg exploit and the npm supply chain attack, highlight persistent vulnerabilities across the crypto and software supply chain. These breaches can erode investor confidence and underscore the critical need for enhanced security measures, robust auditing, and decentralized trust mechanisms to mitigate risks to user funds and the integrity of decentralized applications. These events may drive demand for more secure infrastructure and hardware wallet solutions. Solana's demonstrated financial performance, with significantly higher annual revenue than Ethereum, reflects a growing and active application ecosystem. This indicates strong competition among Layer 1 blockchains for block space demand and economic value generation, potentially influencing developer and user migration across different networks. Broader Context The Hyperliquid governance vote marks a maturation of decentralized autonomous organization (DAO) decision-making within the DeFi sector, establishing precedents for how protocols manage critical infrastructure like stablecoins. This development could inspire similar initiatives across other decentralized platforms seeking greater self-sufficiency. Legislative efforts like the RFIA draft represent an ongoing, multi-faceted attempt by U.S. lawmakers to bring regulatory clarity to the digital asset space. The proposed framework seeks to balance innovation with consumer protection and financial stability, reflecting a global trend towards defining the legal and operational boundaries for cryptocurrencies and blockchain technology. The interplay between various legislative proposals and regulatory bodies (SEC, CFTC) will shape the future landscape of crypto regulation in the United States. The recent security breaches are part of a broader pattern of rising crypto thefts, with figures indicating over $2.17 billion already stolen in 2025. This persistent threat environment necessitates continuous evolution in cybersecurity practices within both the crypto industry and the wider technology sector supporting Web3. The npm attack, in particular, illustrates how vulnerabilities in traditional software supply chains can directly impact the security of decentralized applications. The robust growth observed in ecosystems like Solana, alongside institutional interest and ongoing innovation, contrasts with the challenges posed by regulatory uncertainty and security risks. This dynamic environment suggests a sector undergoing rapid development, characterized by both significant opportunities for expansion and inherent operational complexities that demand continuous adaptation from market participants and regulators.
Executive Summary Nansen, a prominent blockchain analytics platform, has implemented a strategic points program, Nansen Points (NXP), alongside enhanced staking functionalities for various digital assets. This initiative is designed to foster user engagement and loyalty, establishing a framework for potential future token airdrops. Notably, existing NXP holders have already become eligible for immediate distributions of WCT tokens from Wallet Connect and HOME tokens from Defi App, based on specific tier requirements and snapshot dates. The program runs in seasons, with Season 1 active until September 30, 2025. The Event in Detail Nansen's points program, which does not yet guarantee a native token, functions as a mechanism to reward user interaction and investment within its ecosystem. Users accrue NXP by completing onboarding quests, maintaining a Nansen subscription, referring new users, and staking supported assets such as ETH, SOL, APT, SUI, and HYPE via its staking hub. Staking $1,000 in assets can yield approximately 900 NXP per week, with larger stakes offering 2x-3x point multipliers. Staked assets remain non-custodial and are withdrawable at any time. In a direct reward mechanism, NXP holders at the Green tier or above who submitted Permissionless Rewards wallets by an August 19 snapshot became eligible for WCT token airdrops from Wallet Connect. The distribution scales with NXP tiers: Green Tier received 165 WCT, Ice Tier 300 WCT, North Tier 600 WCT, and Star Tier 900 WCT. Separately, Defi App initiated a Permissionless Rewards Program, allocating 100 million Bonus $HOME tokens to Nansen point holders based on a July 30 snapshot. These $HOME tokens have a 90-day unlock period from the program's launch, with claims scheduled weekly. Defi App also plans a Season 2 airdrop of 1 billion $HOME based on XP accumulation. Furthermore, Nansen has integrated direct staking functionality for Aptos (APT) tokens on its platform. This allows users to stake a minimum of 10.1 APT to earn rewards and contribute to network security, utilizing Nansen's validator with access to on-chain analytics. Market Implications This strategic move by Nansen is anticipated to significantly increase user engagement and attract new subscribers to its analytics platform. The promise of potential future token rewards, coupled with immediate distributions of WCT and HOME tokens, creates a strong incentive for users to actively participate and deepen their interaction with Nansen's services and affiliated projects like Defi App and Hyperliquid. This could drive higher trading volumes and user adoption across these platforms. The model establishes a precedent for how sophisticated blockchain analytics providers can leverage tokenomics to cultivate loyalty and expand their user base, potentially influencing other platforms to explore similar incentive structures. For the broader market, it signals a continued trend of rewarding active participants in the Web3 ecosystem through points programs leading to token distributions, an approach that has gained traction across various protocols. Expert Commentary Market observers note that while Nansen has not officially confirmed a native token, its points program strongly mirrors the pre-airdrop warm-up strategies employed by other successful platforms such as Blur, Friend.tech, and LayerZero. With significant venture backing, including an $88 million Series B raise and a reported $750 million valuation, the platform is seen as clearly laying the groundwork for a future token launch. The NXP program acts as a "scorecard," where higher points are expected to translate into a larger future token allocation. This approach positions Nansen to leverage its extensive data engine and millions of labeled wallets into a token economy, which could provide a revenue-sharing mechanism for investors and incentivize continued platform usage. Broader Context Nansen's integration of a points and staking reward system is emblematic of an evolving trend within the Web3 ecosystem to decentralize incentives and foster community ownership. By rewarding active usage and investment in its platform, Nansen is aligning its growth with that of its user base, a strategy that seeks to differentiate it in a competitive market. This model, which encourages on-chain activity and data utilization, contrasts with traditional corporate loyalty programs by offering tangible, potentially valuable digital assets. The successful implementation and subsequent token distribution could serve as a blueprint for other analytics and infrastructure projects considering similar tokenization efforts, further solidifying the role of token-based incentives in driving adoption and sustained engagement across the digital asset landscape. It reinforces investor sentiment around the value of early participation in such ecosystems, positioning those accumulating points now for potential future gains in line with the platform's growth.
Executive Summary The cryptocurrency staking landscape is undergoing significant institutionalization and regulatory maturation. Valour Digital Securities Limited launched the 1Valour Bitcoin Physical Staking ETP on the London Stock Exchange, providing regulated access to Bitcoin yield for professional investors. Concurrently, BitGo Europe GmbH secured an extended license from Germany's BaFin, enabling a comprehensive suite of MiCA-compliant custody, staking, transfer, and trading services across Europe. These developments coincide with Trust Wallet detailing new TWT tokenomics aimed at bolstering ecosystem utility and Meteora confirming MET token airdrops for JUP stakers. Meanwhile, Ethereum co-founder Vitalik Buterin defended the network's 45-day staking exit queue, emphasizing its role in blockchain security. The Event in Detail Valour Digital, a subsidiary of DeFi Technologies Inc., introduced the 1Valour Bitcoin Physical Staking ETP on the London Stock Exchange Main Market on September 18. This product, identified by ISIN: GB00BRBV3124, is designed for professional investors, offering a 1.4% annual staking yield reflected in its net asset value daily. The ETP is physically backed 1:1 with Bitcoin held in institutional-grade cold storage by Copper and employs multi-party computation technology for security. It is available in both GBP and EUR currencies. In Europe, BitGo Europe GmbH received an extension to its license from Germany's Federal Financial Supervisory Authority (BaFin) on September 17, 2025. Operating out of Frankfurt, BitGo Europe now provides regulated crypto OTC trading, high-performance electronic trading for thousands of digital assets and stablecoins, alongside its existing custody, staking, and transfer services. This expansion positions BitGo as a comprehensive, MiCA-compliant full-stack platform for institutional investors across 27 EU member states. Trust Wallet, a prominent self-custody Web3 wallet with over 210 million users, released a Litepaper outlining new TWT tokenomics. The updates, which include lock-up rewards, DeFi staking, fee discounts, and community governance, are slated for phased implementation beginning in Q4 2025. Key features like FlexGas, launched in May 2025, enable users to pay Ethereum and BNB Chain gas fees with TWT, USDT, or USDC, with cross-chain support anticipated by late 2025 or Q3 2025. Community sentiment reflects "FlexGas hype" for its utility expansion, tempered by "liquidity jitters" following Binance's reduction of TWT's collateral ratio from 60% to 45% in June 2025. Within the Solana and Jupiter ecosystems, Meteora confirmed that JUP stakers will be eligible for a MET token airdrop, with the Token Generation Event (TGE) scheduled for October. Season 1 of Meteora's points system concluded on June 30, 2025, allocating 15% of MET tokens for the airdrop based on points earned from fees and Total Value Locked (TVL) in 2024 and 2025, plus an additional 2% for retail users meeting specific criteria. Ethereum's staking mechanism was recently a subject of debate, with co-founder Vitalik Buterin defending the network's 45-day staking exit queue. Buterin characterized staking as a "solemn duty to defend the chain," suggesting that "friction in quitting is part of the deal" for network stability. This response followed criticism from Galaxy Digital's head of DeFi regarding the lengthy unstaking period compared to Solana's two days. The Ethereum network currently boasts over 1 million active validators and 35.6 million ETH staked, representing nearly 30% of the total supply, with an entry queue of 464,626 ETH requiring an 8-day activation delay. Market Implications The introduction of regulated Bitcoin staking products, such as Valour Digital's ETP, signifies a growing integration of decentralized finance mechanisms into traditional financial structures. This provides institutional investors with a compliant avenue to earn yield on digital assets, potentially driving further capital inflows into the crypto market. The 1.4% annual yield, while modest compared to some DeFi offerings, is notable for its regulatory backing and physical Bitcoin collateralization. BitGo's expanded BaFin license under MiCA is expected to significantly enhance institutional confidence and activity in the European digital asset market. With 72% of EU investors prioritizing MiCA-compliant platforms, and a reported 55% rise in institutional deposits in EU-regulated custodians since 2024, BitGo's comprehensive suite of services positions it to capture a substantial share of Europe's projected $26 billion crypto revenue growth in 2025. This development reduces operational risk for institutional players and enables more efficient capital deployment within a secure, regulated framework. Updates to tokenomics, as seen with Trust Wallet's TWT and Meteora's MET airdrop, are crucial for sustaining ecosystem growth and user engagement. Trust Wallet's FlexGas feature aims to drive TWT utility and adoption, with projections of up to $3.7 million in monthly demand if 10% of daily swap volume utilizes TWT for gas. However, the impact of Binance reducing TWT collateral ratios underscores the sensitivity of token valuations to broader market liquidity and exchange policies. The Meteora airdrop for JUP stakers incentivizes participation and loyalty within its ecosystem, a common strategy to foster community and liquidity for new tokens. Vitalik Buterin's defense of Ethereum's staking exit queue highlights a fundamental tension between user liquidity and network security. His argument that "friction" is a necessary component for a robust, decentralized network provides a philosophical underpinning for Ethereum's current design choices, distinguishing it from networks with faster unstaking periods. This ongoing discussion influences perceptions of network stability and decentralization as key value propositions. Expert Commentary Olivier Roussy Newton, CEO of DeFi Technologies, emphasized Valour's pioneering role, stating, "We are proud to unveil the world's first Bitcoin Staking ETP to be listed on the London Stock Exchange." He added that Valour offers "the ability to earn a yield of 1.4% on properly custodied Bitcoin from a regulated, exchange-listed instrument." Brett Reeves, Head of European Sales and Go Network at BitGo, expressed enthusiasm for their expanded European platform, remarking, "We are thrilled to bolster our European platform and enable our clients to trade seamlessly, competitively, and confidently." Reeves highlighted the combination of institutional-grade custody with high-performance execution, calling it "a game-changer for any institution looking to operate safely and efficiently in the digital assets markets." Vitalik Buterin, addressing concerns over Ethereum's staking exit queue, likened staking to military service, suggesting that "friction in quitting is part of the deal" for those undertaking "a solemn duty to defend the chain." Broader Context These individual developments occur within a broader trend of increasing regulatory clarity and institutional acceptance in the crypto market. The U.S. Securities and Exchange Commission (SEC) has tacitly allowed staking yields within ETPs, provided issuers meet specific liquidity requirements, such as ensuring 85% of assets are redeemable or establishing comprehensive liquidity risk management plans. This regulatory shift, alongside the approval of Bitcoin spot ETFs in January 2024, is paving the way for a "fast track" for altcoin ETFs. Market analysts anticipate that such regulatory allowances could trigger a significant supply squeeze, potentially up to $710 billion for Bitcoin ETFs, fundamentally altering the supply-demand dynamics of the crypto market and positioning entities like Coinbase as significant beneficiaries due to their established infrastructure. The cumulative effect of these regulatory milestones and product innovations suggests a continued maturation of the digital asset ecosystem, attracting more traditional financial participants.
The Event in Detail On September 17, 2025, the Federal Open Market Committee (FOMC) announced a 25 basis point reduction in the federal funds rate, adjusting the target range to 4.00%-4.25%. This marked the initial rate cut since the start of the year and reflected the Federal Reserve's response to an economy showing moderation, despite persistent but stabilizing inflation. Chair Jerome Powell indicated that the Fed is actively reassessing its regulatory approach to cryptocurrencies, acknowledging the sector's increasing maturity and mainstream integration. This policy shift suggests a more flexible and forward-looking stance on digital assets, with the central bank open to regulated crypto activities by financial institutions. Following the announcement, Bitcoin saw a price increase to $117,286, driven by sustained inflows into Bitcoin exchange-traded funds (ETFs) and market optimism. Ethereum, however, maintained its position near the $4,500 support level, influenced by a slowdown in ETF inflows. XRP demonstrated resilience, with futures open interest exceeding $8 billion, indicating continued retail demand. Concurrently, the Fed is continuing its quantitative tightening (QT) program, which has reduced its balance sheet from a peak of nearly $9 trillion in 2022 to approximately $7.4 trillion as of early 2025. Market Implications The Federal Reserve's rate cut carries significant implications for risk assets, including the cryptocurrency market. Short-term, the reduction in borrowing costs is anticipated to sustain or accelerate institutional capital inflows into digital assets, particularly those aligned with established strategic allocation logics. Bitcoin is widely recognized as a "Digital Gold" for its store-of-value proposition, while Ethereum functions as a "World Computer" underpinning a range of institutional applications. Solana is increasingly positioned as "Internet Capital Markets" due to its high-speed, low-cost transaction capabilities suited for active on-chain trading. Institutional holdings demonstrate a varied commitment: both BTC and ETH boast over 18% institutional ownership, whereas SOL stands at 9.5%, indicating substantial growth potential. A notable trend is the emergence of SOL Digital Asset Trust (DAT) companies, which are not merely holding Solana but also generating cash flow through validator operations. This "DAT++" approach, combining treasury holdings with infrastructure operations, compounds growth at nearly double traditional staking-only models and has contributed to SOL's recent market surge. Analysts highlight that the concentration in DATs has increased since 2024, strengthening the long-term institutional demand component. Business Strategy and Market Positioning Solana's ecosystem is evolving into a utility-driven infrastructure layer, differentiating itself from Bitcoin's established "digital gold" narrative and Ethereum's "world computer" vision. Solana's value proposition is actively being built by enterprises, developers, and institutional players, with its DeFi ecosystem dominating 81% of DEX transactions due to high-speed and low-cost processing. Institutional backing from entities like Franklin Templeton and $1.65 billion in corporate treasury investments underscore Solana's growing credibility. SOL Strategies Inc. (NASDAQ: STKE) serves as a key example of this evolving landscape. The company transformed from a Bitcoin holding entity to North America's first publicly traded firm focused on the Solana ecosystem. As of September 12, 2025, SOL Strategies expanded its Solana treasury to $144 million, holding 435,064 SOL tokens, with total assets reaching $164 million. The company reported $800,000 in adjusted EBITDA in Q3 2025, validating its DAT++ model. Operationally, it manages 3.73 million SOL across five validators, servicing over 12,000 unique staking participants. This strategy echoes the corporate treasury adoption seen with MicroStrategy's significant Bitcoin holdings, but SOL Strategies further diversifies revenue through active network participation. The synergy between U.S. stocks and crypto reserve companies is also becoming pronounced. Firms like Coinbase reported $1.5 billion in Q2 2025 revenue, driven by expansion into tokenized real-world assets (RWA) and DEX trading. Circle's stock surged 750% post-IPO in June 2025, supported by its $61.3 billion USDC supply and role in the RWA tokenization boom. Tokenization of real-world assets, including U.S. Treasuries, generated $25 billion in market value by Q2 2025, attracting traditional investors to crypto equities and boosting DeFi Total Value Locked (TVL) by 72% year-over-year. Broader Context and Outlook The Federal Reserve's more accommodating monetary policy, combined with a maturing regulatory environment, is solidifying cryptocurrencies as a recognized asset class within traditional finance. This shift is characterized by institutions moving from speculative engagement to strategic asset allocation. As of September 10, 2025, Digital Asset Treasuries (DATs) collectively held over 1 million BTC (approximately $110 billion), 4.9 million ETH (approximately $21.3 billion), and 8.9 million SOL (approximately $1.8 billion). These holdings represent approximately 5% of Bitcoin's circulating supply and over 4% of Ethereum's, underscoring the systemic relevance of these institutional vehicles. Looking forward, the thesis for Bitcoin reaching $1 million by 2027 is supported by macroeconomic tailwinds, including its role as an inflation hedge, ongoing Fed rate adjustments, and supply constraints following the 2024 halving. Institutional adoption through spot Bitcoin ETFs, which accumulated over $50 billion in assets under management by mid-2025, and substantial corporate holdings exceeding 1,000,000 BTC further bolster this outlook. While risks persist, such as ETF outflows totalling $751 million in August 2025 and potential geopolitical tensions, sustained whale accumulation—evidenced by 19,130 addresses holding significant amounts of Bitcoin in September 2025—suggests strong long-term confidence in the asset class. The convergence of regulatory clarity, technological advancements, and strategic institutional investments is reshaping the Web3 ecosystem and driving continuous innovation in areas like RWA and tokenization.
Hyperliquid is a performant L1 optimized from the ground up. The vision is a fully onchain open financial system with user built applications interfacing with performant native components, all without compromising end user experience.
The Hyperliquid L1 is performant enough to operate an entire ecosystem of permissionless financial applications – every order, cancel, trade, and liquidation happens transparently on-chain with block latency <1 second. The chain currently supports 100k orders / second.
The Hyperliquid L1 uses a custom consensus algorithm called HyperBFT which is heavily inspired by Hotstuff and its successors. Both the algorithm and networking stack are optimized from the ground up to support the L1.
The flagship native application is a fully onchain order book perpetuals exchange, the Hyperliquid DEX. Further developments include a native token standard, spot trading, permissionless liquidity, etc. (Data from Coingecko)
Hyperliquid (HYPE) current price is 0, down 1.2% today.
Hyperliquid (HYPE) daily trading volume is $576.7M
Hyperliquid (HYPE) current market cap is $15.7B
Hyperliquid (HYPE) current circulating supply is 270.7M
Hyperliquid (HYPE) fully diluted market cap (FDV) is $58.0B