IBM 360/40
Happy Memorial Day,
Coming off of a week where Hyperliquid's market dominance has rewritten the DEX playbook, the crypto landscape is changing beneath our feet at breakneck speed. The battle lines between Ethereum, Solana, and rising star SUI are being redrawn daily, while stablecoin titans USDC and Tether jockey for position in an increasingly crowded field.
Whether you're tracking Hyperliquid's billion-dollar revenue engine or wondering if your bank might soon launch its own digital dollar, this edition unpacks the forces reshaping your portfolio and the broader market. Buckle up—the insights ahead might just change how you position yourself for Q2.
As always, feel free to send us feedback at [email protected].
Hyperliquid's Meteoric Rise: Redefining the Perp DEX Landscape
Hyperliquid $HYPE.X ( ▼ 6.14% ) has quickly emerged as the powerhouse of perpetual DEXs, commanding over 60% of market volume and generating more than $1 billion in annualized revenue. Its rapid ascent—marked by a soaring market cap and innovative tokenomics—has set a new benchmark for on-chain trading platforms, even rivaling Ethereum in monthly application revenue.
Hyperliquid is the gold standard of a cash flow accruing asset... buybacks that are very substantial, and that pressure that's on other tokens to compete there is really nice actually to see.
The drivers behind Hyperliquid's explosive growth are its high-performance trading engine, viral incentive programs, and the migration of traders from centralized to decentralized exchanges. There are potential challenges ahead, such as centralization concerns, regulatory risks, and the sustainability of its current momentum, as well as the broader impact on the competitive perp DEX ecosystem.
Hyperliquid is redefining speed and scale in trading. But outside of crypto, another arms race is underway—this time, in how quickly you can master AI.
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L1 & L2 Showdown: Can Solana and SUI Dethrone Ethereum?
The competition among Layer 1 and Layer 2 blockchains is intensifying, with Ethereum $ETH.X ( ▼ 5.13% ) facing challenges from fast-rising contenders like Solana $SOL.X ( ▼ 3.46% ) and SUI $SUI.X ( ▼ 1.14% ). While Ethereum grapples with underperformance and questions about its future as a macro asset, Solana is capturing attention through explosive growth in meme coins, transaction volume, and stablecoin inflows.
Solana: $90B market cap, $10B+ in stablecoins, all-time high transaction activity
SUI, meanwhile, is making waves as a dark horse, rapidly expanding its stablecoin market cap and drawing interest with rumored gaming and partnership deals.
Me, personally, I just don't believe in ETH anymore. I just can't see this thing outperforming.
As new L1s and L2s like Mantle and Celestia enter the fray, the debate centers on whether the L1 trade is played out or if fresh narratives—such as real-world assets, AI, and appchains—can drive the next cycle. The consensus: Ethereum remains the institutional favorite, but Solana and SUI are winning over retail users and developers.
The next chapter will be defined by real-world adoption, sustainable revenue, and the race to capture emerging use cases in an increasingly crowded ecosystem.
Stablecoins Showdown: USDC vs. Tether, Bank Ambitions, and the Regulatory Race
Stablecoins are at the heart of the crypto economy, powering trillions in transactions and providing a crucial bridge to the dollar for users worldwide. The rivalry between USDC and Tether is heating up, with Tether holding a commanding lead and USDC navigating regulatory headwinds and new competition from both banks and decentralized projects.
The demand for stablecoins is mostly, as far as I can tell, internationally. It's people that want exposure to the dollars, but they can't get a bank account.
Tether: $153B, USDC: $60B, Athena: $5B, Dai: $5B, BlackRock BUIDL: growing
The possible acquisition of Circle (USDC's issuer) by Coinbase or Ripple could reshape the landscape, while major US banks are plotting their own stablecoin initiatives to cement the dollar's dominance. As lawmakers debate new regulations, the future of stablecoins will be shaped by the interplay of innovation, compliance, and the growing involvement of traditional finance. International demand remains strong, especially in underbanked regions, and while decentralized stablecoins face skepticism, projects like Dai and Frax are pushing the envelope.
The next chapter for stablecoins will be defined by regulatory clarity, bank-driven competition, and the ongoing evolution of on-chain finance.
As we wrap up today’s issue, it's clear we're witnessing a market in dramatic transformation. From Hyperliquid's redefinition of DEX economics to the shifting power dynamics between Ethereum, Solana, and SUI, and the stablecoin wars heating up – these aren't isolated trends but interconnected forces reshaping crypto's future.
We're curious: which of these market movements is most significantly impacting your portfolio strategy right now? Hit reply and let us know if you're leaning into DEX tokens, shifting your L1 allocations, or diversifying your stablecoin holdings. Your insights help us tailor future issues to what matters most in your crypto journey.
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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered investment advice. Cryptocurrency investments are speculative and involve significant risk. Please conduct your own research and consult with a financial professional before making any investment decisions.