Hyperliquid: A Rising Force in Decentralized Finance
Introduction
Hyperliquid, a decentralized exchange (DEX), has emerged as one of the standout success stories in the current bull market. With daily trading volumes reaching $4 billion, it has become the largest DEX derivatives platform, commanding nearly 60% of the market.
What’s Behind Hyperliquid’s Parabolic Rise?
Launched in 2023, Hyperliquid gained popularity in April 2024 after launching spot trading. This, combined with its aggressive listing strategy and easy-to-use on-chain user interface, helped to lure in a wave of new users. The platform’s real explosion, however, came in November 2024, following the launch of its HYPE (HYPE) token. Hyperliquid’s trading volume skyrocketed, and it now boasts over 400,000 users and more than 50 billion trades processed, according to data from Dune.
Hyperliquid’s Ambitions Expand
While Hyperliquid started as a high-performance perpetual futures and spot DEX, its ambitions have since expanded. With the launch of HyperEVM on February 18, the project has become a general-purpose layer-1 chain capable of supporting third-party DeFi apps built on top of its infrastructure.
Will Hyperliquid Become a Sustainable CEX Alternative?
According to CoinGecko, Hyperliquid now ranks 14th among derivatives exchanges by open interest, sitting at $3.1 billion. That’s still behind Binance’s $22 billion but ahead of older names like Deribit or derivatives divisions of Crypto.com, BitMEX, or KuCoin. It’s the first time a DEX is competing so closely with established CEXs.
A Closer Look at Hyperliquid’s Performance
Hyperliquid’s BTC perpetual futures volume share recently hit an all-time high, reaching almost 50% of Bybit’s and 21% of Binance’s, according to Skewga.hl. “No DEX has ever come this close to matching Tier 1 CEX volume,” Skewga.hl noted.
The Rise of Perpetual Swaps
Perpetual swaps have seen a revival as a trading tool. During the 2021–2022 bull market, daily perps volume averaged around $5 billion. In early 2025, that number often exceeded $15 billion, with Hyperliquid accounting for nearly two-thirds of it.
Conclusion
Hyperliquid’s rapid ascent is a testament to its ability to adapt and innovate in the DeFi space. With its expansion into general-purpose infrastructure and its focus on specialized trading pairs, it is poised to become a sustainable CEX alternative. However, it remains to be seen whether it can capture institutional investor flows or scale to the level of top-tier CEXs.
FAQs
Q: What is Hyperliquid?
A: Hyperliquid is a decentralized exchange (DEX) that allows users to trade cryptocurrencies in a decentralized manner.
Q: What is the HYPE token?
A: The HYPE token is a token launched by Hyperliquid in November 2024, which has contributed to the platform’s rapid growth.
Q: What is HyperEVM?
A: HyperEVM is a general-purpose layer-1 chain launched by Hyperliquid in February 2025, which allows for the development of third-party DeFi apps.
Q: Is Hyperliquid a sustainable CEX alternative?
A: While Hyperliquid has made significant strides in becoming a sustainable CEX alternative, it remains to be seen whether it can capture institutional investor flows or scale to the level of top-tier CEXs.
Q: What is the current market share of Hyperliquid?
A: According to CoinGecko, Hyperliquid now ranks 14th among derivatives exchanges by open interest, sitting at $3.1 billion.
