#Trading Strategy Sharing  Why Are Hybrid Protocols Like Hyperliquid Gaining User Trust?

DeFi protocols like Hyperliquid and Ethena are gaining popularity despite not being fully decentralized. Permissionless access and transparency are emphasized.

A hybrid decentralization model that combines DeFi and centralized control could be the future trend in the crypto space.

HYPE price is up 64% in May. It could reach ATH level of $42.25. However, ongoing selling pressure could lead to a drop to $31.26 or below.

The Decentralized Finance (DeFi) space has been experiencing a flurry of activity lately. Protocols like Hyperliquid and Ethena are gaining traction and proving to be successful.

Despite their growth, many are questioning whether these protocols are truly decentralized. Is this success a coincidence or a sign of a larger shift in the DeFi space?

Hyperliquid Proves That Users Want DeFi, But Not Full Decentralization

Hyperliquid, a prominent DeFi protocol, saw a remarkable 54% increase in its total value locked (TVL) in May. Its TVL increased from $2.21 billion to $3.35 billion, indicating increasing investor interest. This increase shows that even though some aspects of the protocol are not fully decentralized, it has attracted significant capital and trust from investors.

Hyperliquid uses a hybrid model for order matching. Initially, orders are matched off-chain, but the entire procedure, including the creation of the order book, is designed to be verified and resolved on-chain. This combination ensures fast execution while maintaining high integrity and security standards.

However, this approach is not completely decentralized like Uniswap, Lido DAO, and Aave.

Tracy Jin stated that the operating model does not matter. This is because the community is starting to see that a project does not have to be completely decentralized to be successful.

‘Paradoxically, projects like Hyperliquid and Ethena have succeeded because they deliberately moved away from full decentralization. Instead, they focused on core values ​​like permissionless access and transparency. Users were able to interact freely with the protocols, confident that everything that happened on-chain was visible and verifiable. As a result, trust and engagement increased — even if there were still elements of centralized control under the hood. This is part of a larger trend in DeFi,’ Jin said.

Jin also noted that Hyperliquid’s success could trigger a shift in how developers work. He noted that teams using a hybrid-centralized space often move faster and offer clearer value propositions to users.

Pauline Shangett also said that the hybrid model could become the cornerstone of the crypto industry.

‘We won’t see a shift towards either side [of DeFi or Centralization]. Hybrid solutions are the future of the industry. The DeFi emphasis will remain in most marketing materials as a way for companies to differentiate themselves from their competitors. In turn, they will try to hide the centralization elements. But all of this is just the beginning. Eventually, we will accept the new reality and not fool ourselves,’ Shangett added.

Therefore, users can prioritize solutions that work, even if they are not fully decentralized. At the end of the day, Jin added that regardless of the operational model, what matters is that projects gain the trust of investors.

‘Investor trust is the foundation of DeFi. If that erodes, the entire ecosystem suffers. Without trust, users will not invest liquidity, institutions will not partner or invest, and the innovation cycle will slow. Capital may return to centralized crypto exchanges or even abandon crypto altogether in search of stability and predictability,’ Jin said.

HYPE Price Monthly Journey.

HYPE saw an impressive 64% growth in May and has carried this momentum into June. HYPE is trading at $38.18. This continuous increase suggests that investor interest is strong and the token could make further gains.

Currently, the decentralized finance token is just 16.25% away from its all-time high (ATH) of $42.25, which was reached in December 2024. To reach this price target, HYPE must secure the $38.47 support level. If the altcoin successfully holds this level, it could reach ATH and even continue its upward movement higher.

Despite the positive momentum, continued selling by investors remains a concern for HYPE’s price stability. If selling pressure increases, the price could drop below $36.47 and head towards $31.26. Failure to hold this support would invalidate the bullish outlook.

This would signal a significant shift in market sentiment, possibly leading to further declines to $27.31.