L1 network HyperLiquid has activated staking on its mainnet with an initial $8.4 billion token lock up and 16 validators.

On-chain perpetual exchange heavyweight HyperLiquid unveiled native staking for its (HYPE) token on Dec. 30, allowing holders to generate rewards for blockchain participation.

The protocol, known for its decentralized derivatives trading venue, reports $2.64 billion in 24-hour trading volume and generates over $1 million daily in fee revenue, according to DeFiLlama.

Within the first hour of staking activation, users deposited approximately 7 million HYPE tokens, distributed across 16 validators. Staking involves locking up cryptocurrencies to secure decentralized networks, with stakers earning rewards for their contributions.

HyperLiquid confirmed a total of 300 million tokens, valued at $8.4 billion, were staked at the feature’s launch on its layer-1 blockchain. The Hyper Foundation, a non-profit dedicated to the HYPE ecosystem, clarified the procedure for vested tokens, stating:

Users can stake HYPE to a trusted validator and earn staking rewards in HYPE. Users may consider different metrics when choosing which validators to stake to, such as uptime, commission, reputation, and community contributions.

Hyper Foundation

HYPE, which debuted last month, has experienced significant growth, climbing from $3.57 to $27.44 at the time of writing. Its $9.2 billion market cap surpasses well-established DeFi projects like Uniswap (UNI), and Litecoin (LTC).