There's always something new and shiny catching the attention of investors in crypto. Technology evolves, narratives shift seemingly overnight, but one thing remains constant: Great products and technology will attract users.

In 2024, one of the most hyped projects embodying these traits launched -- Hyperliquid (HYPE). This protocol challenges the conventional design of decentralized finance (DeFi) by offering a scalable, transparent, and user-friendly trading experience.

Since its token airdrop in late November, Hyperliquid has soared about 650%, rising to become the 19th most valuable cryptocurrency. Yet, even with this impressive growth, there's still substantial upside for investors in 2025. Here's why Hyperliquid is my top cryptocurrency to buy next year.

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What makes Hyperliquid so unique?

As of today, Hyperliquid's core offerings are two main products: a perpetual futures (perps) market and a spot trading market.

Perps are a type of derivatives contract that lets traders speculate on the price of an asset without owning it, often using leverage to amplify returns. Hyperliquid has rapidly become the largest perpetual trading platform in terms of volume, with more than 30% of market share.

Complementing its perp market, Hyperliquid also offers a spot trading platform where users can buy, sell, and swap cryptocurrencies with minimal price slippage and near-instant execution speeds.

While these offerings are impressive and have become extremely popular, what sets Hyperliquid apart is its underlying technology and design.

Compared to many DeFi protocols that operate on other blockchains, Hyperliquid utilizes its own blockchain, tailored specifically to its use cases. As a result, Hyperliquid avoids the bottlenecks of general-purpose chains, such as costly fees, slow speeds, and an overall lack of control over functionality.

The technology under the hood of its blockchain is noteworthy as well. Its fully on-chain central limit order book (CLOB) helps match orders with tight spreads and low latency without compromising the decentralization that crypto users value.

Last but not least, Hyperliquid employs its proprietary HyperBFT consensus mechanism, which can process 100,000 orders per second. This performance is on par with leading centralized exchanges and not only prevents front-running and congestion, but also reduces gas (user) fees for most transactions -- a major win for traders.

The impending game changer: HyperEVM

While Hyperliquid has already cemented its place in the crypto landscape with its current offerings, the planned launch of the HyperEVM promises to take the protocol to a whole new level.

Currently in its testnet phase, the HyperEVM (Ethereum virtual machine) will let developers build decentralized applications (dApps) and smart contracts on Hyperliquid's blockchain using the same tools and programming language as Ethereum. This compatibility will enable Ethereum developers to migrate their projects seamlessly while introducing a new layer of utility to Hyperliquid.

What makes the HyperEVM particularly exciting is its potential to attract a wave of innovation. As one of the most widely used blockchains in the world, the integration will allow DeFi applications, such as lending platforms, prediction markets, and options protocols, built on Ethereum to easily leverage Hyperliquid's superior technology and deep liquidity.

The road ahead

This past year will likely be remembered as the year Hyperliquid made its grand entrance into the crypto scene. Its airdrop, one of the largest in crypto history, was a defining moment. Since the airdrop, Hyperliquid's token has surged from just over $3 to more than $27 today.

Yet, while it's easy to feel like the opportunity has passed, a closer look reveals that Hyperliquid is just getting started. Its innovative technology, strong product-market fit, and community-focused tokenomics make it one of the most promising projects in the sector.

Capturing this potential was a recent research report by crypto analytics firm Messari. Highlighting Hyperliquid's unique design, the report predicted that if Hyperliquid continues on its current trajectory, its token could eventually reach valuations comparable to those of popular cryptocurrencies like Solana, Tron, or Avalanche.

If 2024 marked Hyperliquid's arrival, 2025 could very well be the year it cements its place as a leader in the crypto industry.