In the fast-paced world of decentralized finance (DeFi), where perpetual futures trading platforms like Drift Protocol and Hyperliquid battle for dominance, valuation multiples can tell a compelling story. A recent tweet from @aixbt_agent highlights a stark contrast: Drift trades at just 4.9x earnings, while Hyperliquid commands 11.3x. But why the gap? As the post puts it, "that discount isn't opportunity, it's memory." Let's unpack this insight and explore how past events continue to shape trader behavior today.

The Luna Collapse: A Quick Refresher

Back in May 2022, the crypto market witnessed one of its most dramatic meltdowns with the collapse of Terra's LUNA and UST tokens. What started as a depegging of the algorithmic stablecoin UST spiraled into a $40 billion wipeout, triggering widespread liquidations across the ecosystem. For those new to the term, a liquidation happens when a trader's position is automatically closed due to insufficient collateral, often amplifying market crashes.

Drift Protocol, a leading perpetual futures DEX on Solana, was caught in the crossfire. During the chaos, a technical glitch in Drift's V1 version led to improper liquidations and a $20 million shortfall in its insurance fund. This forced the protocol to halt settlements temporarily, sparking panic. Within 12 hours, over 60% of its total value locked (TVL)—that's the amount of assets deposited into the platform—fled as users withdrew en masse to safer harbors. The team eventually covered the losses from their own pockets, but the damage to trust was done.

Hyperliquid, on the other hand, launched later without such baggage. Built as a high-performance layer-1 blockchain specifically for DeFi trading, it avoided the pitfalls of early Solana congestion and inherited no historical scars. This clean slate has allowed it to attract traders seeking reliability, contributing to its higher valuation multiple.

Understanding Earnings Multiples in Crypto

In traditional finance, a price-to-earnings (P/E) ratio measures how much investors are willing to pay per dollar of earnings. In crypto, especially for DeFi protocols, we often adapt this to fully diluted valuation (FDV) divided by annualized protocol revenue—essentially, how the market prices future cash flows.

Drift's lower 4.9x multiple suggests skepticism about its growth potential or stability, despite strong recent performance. For instance, in July 2025, Drift hit a record $14.83 billion in monthly perpetual volume, driven by upgrades and partnerships. Yet, its insurance fund today covers only about 10% of open interest (the total value of outstanding futures contracts), which some see as a vulnerability in volatile markets.

Hyperliquid, trading at 11.3x, reflects stronger confidence. By 2025, it's capturing a massive share of perp volume—up to 36% of all crypto revenues in some metrics—while maintaining low drama. Its native token, HYPE, launched with high expectations, positioning it as a premium player.

How This Ties into Meme Tokens

At Meme Insider, we focus on meme tokens, and platforms like Drift and Hyperliquid are crucial for meme traders. Perpetual futures allow leveraged bets on volatile assets, including Solana-based memes like dogwifhat or BONK. Drift's Solana roots make it a go-to for meme degens, but the Luna memory might make traders hesitant during hype cycles, potentially shifting volume to Hyperliquid.

That said, Drift has rebounded impressively, with features like cross-margin trading and improved liquidity. If you're trading memes, always DYOR (do your own research) and consider risk management—lessons from 2022 still apply.

Is the Discount an Opportunity?

The tweet argues no—it's a reminder of risks. While Drift has fixed its bugs and grown TVL, trader psychology plays a huge role in DeFi. Events like the Luna crash or FTX implosion show how quickly sentiment can turn. For savvy investors, this could mean watching for signs of improved insurance coverage or sustained volume growth to close the valuation gap.

If you're diving into perp trading, start small and understand the mechanics. Platforms like these offer exciting opportunities but come with real risks. For more on the original discussion, check out the tweet here.

In the end, crypto markets are as much about narratives as numbers. Drift's story is one of resilience, but memories fade slowly—Hyperliquid's premium proves it.