Hyperliquid Evokes the Early Days of Solana

ARK Invest’s CEO, Cathie Wood, likened Hyperliquid to the early potential of Solana, referring to it as “the new kid on the block.”

“It’s thrilling. It brings back memories of Solana in its formative days, and Solana has validated its significance among the leading players,” Wood stated in a recent discussion on the Master Investor podcast.

Currently, ARK Invest manages three primary crypto assets in its public portfolios: Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Wood explained that their exposure to Solana comes via Breera Sports, which is linked to the Solana treasury and backed by Middle Eastern investors. She also highlighted advisory connections with economist Art Laffer.

While Wood did not specify any investments in Hyperliquid, she marked it as a notable protocol to observe. Her comments arrive as the rivalry among perpetual futures DEXs intensifies, especially with Aster launching a token recently and witnessing its trading volume and open interest surpass Hyperliquid’s.

Related: Aster can flip HYPE by market cap and rally another 480%: Analyst

Bitcoin stands as the true cryptocurrency

Amidst the growing variety of tokens, Wood contends that the future of crypto is likely to be dominated by a select few networks. “We don’t foresee many cryptocurrencies emerging,” she remarked. “Bitcoin dominates the cryptocurrency landscape in terms of pure crypto.”

While acknowledging Ethereum’s role in powering the DeFi ecosystem, Wood emphasized Bitcoin’s function as a monetary system, pointing out its capped supply and durability. She also noted the rising significance of stablecoins but clarified that Bitcoin remains central to ARK’s long-term strategy.

Wood recognized that the fund also holds various derivatives, such as Uniswap and market protocols associated with Solana, but asserted that their main emphasis is intentionally narrow. “When it comes to the major players, those are the big three right now,” she stated.

Related: Bitwise files for spot Hyperliquid ETF amid perp DEX wars

Retail and quants gravitate towards DEXs

Decentralized exchanges (DEXs) are gaining traction among retail traders and semi-professional quants, driven by incentives such as airdrops, low fees, and rapid execution, as noted by Jamie Elkaleh, chief marketing officer of Bitget Wallet.