If you’re looking for a cryptocurrency that’s in the green this year, you’ll need to look far and wide. Bitcoin (BTC +9.55%) is down 25%. Ethereum (ETH +5.48%) is down 35%. And XRP (XRP +18.20%) is down 45%. Other, riskier altcoins are down even more.
In fact, of the top 50 cryptocurrencies as ranked by market cap, only three are in the green right now. By far, the standout performer among them this year has been Hyperliquid (HYPE +2.61%), up a remarkable 140%. So could investing in Hyperliquid now put you on the path to millionaire status?
The secret of Hyperliquid’s performance
The good news, if you’re hunting for a crypto with millionaire-maker potential, is that Hyperliquid is not some kind of dodgy meme coin or fly-by-night project. It’s a popular decentralized cryptocurrency exchange where it is possible to trade products — such as perpetual futures on cryptocurrencies — that simply are not available elsewhere.
Today’s Change
(2.61%) $1.88
Current Price
$73.82
Key Data Points
Market Cap
Day’s Range
$70.66 – $74.79
52wk Range
$20.52 – $76.70
Volume
1.4B
Until this summer, Hyperliquid held a commanding share of the market for perpetual futures, and that’s what has led to its standout performance in the crypto market. Since its launch in November 2024, the Hyperliquid token (HYPE) is up by 1,727%. Given that Hyperliquid continues to roll out innovative new products for crypto traders (such as prediction market contracts), it’s quite likely that it has not finished its meteoric ascent.
Image source: Getty Images.
Growth of 1,727% over about seven quarters equates to an annualized growth rate of about 426%. That’s certainly promising, right? Theoretically, if Hyperliquid could continue to grow at that rate, a relatively modest upfront investment of $1,000 could grow into a $1 million position in a bit more than four years. Even if Hyperliquid “only” doubles in value, year after year, it would take just 10 years for $1,000 to become $1 million.
Can Hyperliquid keep up the pace?
But here’s the problem: Hyperliquid is very unlikely to keep up that rate of growth. This summer, regulators finally opened up trading in perpetual futures to U.S. retail investors for the first time ever. In June, the Kalshi prediction market launched trading in perpetual futures, and by all accounts, they have been a smashing success on the platform.
As might be expected, other rivals are taking aim at Hyperliquid’s market. Centralized cryptocurrency exchanges such as Coinbase Global (COIN +7.58%) also want in on the action. And trading platforms such as Robinhood Markets (HOOD -0.70%) are also looking for ways to offer perpetual futures to U.S. customers.
That leads me to think that growth in Hyperliquid could cool soon. Already, HYPE is down nearly 25% from the all-time high it touched in mid-June. Is it a coincidence that HYPE began falling in price at just about the exact same time that U.S. regulators relaxed their restrictions on perpetual futures? I don’t think so.
That being said, Hyperliquid is arguably the only top 50 altcoin with true millionaire-maker potential right now. As long as you are aware of the risks involved, and understand that its rapid rate of ascent might have already peaked, Hyperliquid could be worth a closer look.
Dominic Basulto has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Hyperliquid, and XRP. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.