Hyperliquid Remains Top Perp DEX Despite Market Share Drop, Analyst Finds
A new analysis by DeFi analyst Patrick Scott highlights that Hyperliquid remains a top decentralized exchange for perpetual futures, despite losing market share to competitors.
Perp DEX Market Dynamics
- Perpetual futures are crypto derivatives without an expiry date, hosted on decentralized platforms called perp DEXes.
- These exchanges have grown in popularity as traders shift from centralized exchanges like Binance.
- Perp DEXes increased their share from less than 2% of CEX trading volume in 2022 to over 20% recently.
- Hyperliquid, which issues the HYPE token, was a significant contributor to this growth.
- However, Hyperliquid's market share dropped from 45% to 8% recently, while Binance-affiliated Aster surged to over $270 billion in weekly trades.
- Other new entries like Lighter and edgeX also saw triple-digit growth in activity.
Why Hyperliquid Stands Out
- Scott emphasizes Hyperliquid's strong fundamentals and revenue generation.
- The exchange maintains about 62% of the perp DEX open interest market, indicating liquidity.
- Expansion plans include the HyperEVM network with over 100 protocols and $2 billion in total value locked, and USDH, a stablecoin backed by reserves.
- The HIP-3 initiative aims to allow builders to launch new perps markets by staking large amounts of HYPE, creating a "supply sink" for the token.
- Scott warns that his analysis would change if Hyperliquid's open interest or revenue significantly drops, or if USDH fails to gain liquidity within a year.