ETH

“Some key takeaways from $PURR second earnings call 1. Trade[XYZ] & HIP-3 momentum @dschamis highlighted the rapid success of HIP-3 adoption, with RWAs now representing 5 of the top 10 markets on Hyperliquid. Silver and oil were particularly strong case studies, with notable volume spikes, especially during periods when traditional markets were closed. “When you look at these volume numbers and what’s happening globally, it’s hard to argue that Hyperliquid hasn’t very quickly become an important venue in oil trading. Traditional players are starting to take notice.” 2. HIP-4: Outcome Markets While HIP-3 continues to gain traction, the focus is already shifting toward HIP-4. David emphasized that this is not about competing directly with platforms like Kalshi or Polymarket, but rather about unlocking a much broader market: options, insurance, and new financial primitives. A key highlight is the ability for third-party builders to permissionlessly launch their own markets using HIP-4, effectively opening up a competitive and composable prediction market landscape. 3. Growing mainstream recognition Over the past few months, traditional finance has started to catch up and better understand what Hyperliquid is building. That said, the information gap remains significant, and most market participants are still unaware of the platform. 4. $HYPE correlation dynamics David shared a compelling chart showing the low correlation between $HYPE and broader crypto markets. During the silver-driven volume spike on Hyperliquid, $HYPE moved in the opposite direction of $BTC and $ETH, highlighting how Hyperliquid-specific activity can drive independent repricing events. 5. Balance sheet & capital allocation - $HYPE holdings: ~20M tokens (following ~$216M deployed since listing) - Additional purchases: 7.3M HYPE at ~$29.53 average - $PURR buybacks: $10.5M in December at ~$3.42 - $PURR Share sales: 6.2M shares at ~$6.31 The company still holds ~$102M in cash, providing significant flexibility for future deployments. “When multiples are low, you buy back. When multiples are high, you issue and accumulate tokens.” David also noted that the early low correlation between $PURR and $HYPE enabled aggressive share buybacks earlier in the year (~30% correlation mid-January). 6. Validator launch with Unit Labs One of the most important announcements from the call was the launch of a validator in partnership with Unit Labs. Given Unit’s reputation as the most impactful builders in the Hyperliquid ecosystem, this partnership is highly strategic: diversifying revenue streams and reducing staking-related costs. This aligns with the previously stated goal of deepening involvement within the Hyperliquid ecosystem, with the validator going live on May 11. 7. Quarterly performance - Net income: ~$150M (primarily driven by ~$HYPE +40% performance) - Staking revenue: ~$2.6M - Interest income: ~$1M - Cumulative loss: ~$165M (driven by Q4 performance) - Deferred tax expenses remain non-cash unless $HYPE is sold, which is not aligned with the current strategy. --- Overall, from my perspective, $PURR has been doing, from day one, exactly what you would expect from a DAT, whether in how they manage buybacks and share issuance, or in how they’ve progressively lowered the average cost of $HYPE while increasing their involvement within the Hyperliquid ecosystem, now further reinforced by the launch of the validator with Unit Labs. The vision of Hyperliquid as the platform housing all of finance is materializing much more clearly today than it did in 2025, and @dschamis & @rediamondjr have remained fully committed throughout, even during Q4. Their execution and continued contribution to the Hyperliquid ecosystem deserve recognition, both in terms of strategy and the visibility they bring to Hyperliquid. Hope you'll find this summary useful. Hyperliquid.”