Hyperliquid has officially launched HyperEVM on its testnet, a move aimed at enhancing the blockchain’s smart contract functionality while maintaining its hallmark low-latency trading experience.
Announced on February 18 via Hyperliquid’s official X account, HyperEVM introduces general-purpose programmability to the ecosystem. The upgrade leverages HyperBFT consensus, ensuring fully on-chain execution without relying on external validation layers. This testnet phase will be critical for developer feedback, tooling enhancements, and security testing before the eventual mainnet deployment.
Among the upcoming features, ERC-20 token transfers and precompiles are set to be added in future updates. Additionally, Hyperliquid’s native token, HYPE, will function as the gas token for HyperEVM, with a newly deployed system contract, WHYPE, designed to support DeFi applications and facilitate seamless spot transfers between Hyperliquid’s Layer 1 and HyperEVM.
To enhance security, the platform has introduced a bug bounty program that offers mainnet-level rewards for discovering vulnerabilities during the testnet phase.
The testnet debut comes at a time of significant expansion for Hyperliquid. Since its launch in November 2024, HYPE has surged approximately 553%, significantly outperforming other cryptocurrencies, according to Defillama. The platform’s growth is primarily attributed to its unique economic model, which redistributes profits to liquidity providers and a community-managed fund.
A recent K33 Research report states that Hyperliquid dominated the perpetual DEX market, capturing 55% of the 7-day trading volume. Additionally, the platform’s open interest reached 47% of OKX’s levels and 13% of Binance’s.
The evolution of platforms like Hyperliquid aligned with broader industry shifts. Jesse Walden, managing partner at Variant Fund, predicted that the original “cypherpunk” principles that guided early smart contract platforms might diminish over the next decade. He notes that while the initial blockchain development was based on values like censorship resistance and open-source innovation, increasing institutional adoption is shifting priorities towards speed and regulatory compliance.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
