Hyperliquid's Latest Rally: Uncovering the Factors Behind Growing Institutional Demand for Perpetuals Trading

In 2025, the crypto derivatives sector experienced a dramatic transformation, with Hyperliquid rising to prominence. This rapid ascent is driven by a blend of innovative liquidity strategies and growing institutional participation. By analyzing Hyperliquid’s HIP-3 Growth Mode, user expansion statistics, and institutional treasury initiatives, we can better understand the factors behind its momentum—and what this signals for the future of perpetuals trading.

Liquidity Shifts: Fee Reductions and Open Market Access

When Hyperliquid introduced HIP-3 Growth Mode in November 2025, it fundamentally changed how liquidity is built in crypto derivatives. The platform implemented fee reductions of up to 90%,

and standardizing collateral asset fees between 0.0036%–0.0081%. These adjustments were and aimed at attracting both traders and liquidity providers, especially in non-crypto markets such as equity perpetuals for , , and .

The impact has been significant. Data from DefiLlama shows that Hyperliquid’s trading activity

, demonstrating the effectiveness of Growth Mode. This momentum is further supported by the platform’s permissionless market creation model, which lets deployers introduce new markets without needing approval. By making entry easier, Hyperliquid has established a self-reinforcing liquidity cycle: , which reduces available supply and heightens token scarcity.

User Expansion: 78% Growth in Q4 2025

In the fourth quarter of 2025, Hyperliquid’s user numbers soared, marking a 78% rise compared to the previous half-year

. This surge is linked to the platform’s growing presence in DeFi, derivatives, and gaming, along with . The HIP-3 update, which allows for permissionless perpetual markets, has played a pivotal role by opening up market creation to a wider audience.

Adding to this momentum is a $644 million buyback initiative, which has

by demonstrating robust fundamentals and a dedication to supporting token value. The blend of minimal fees, open innovation, and assertive buybacks has made Hyperliquid a key destination for both individual and institutional investors.

Institutional Momentum: The Hyperliquid Strategies Approach

Interest from institutions has centered on Hyperliquid Strategies, a digital asset treasury (DAT) focused on acquiring and holding HYPE tokens. The DAT’s goal is to raise as much as $1 billion by offering shares, a move that

.

The merger that created this treasury, initially valued at $888 million, has encountered some procedural delays but is still progressing. The latest figures show that over 95% of shareholders have voted in favor, with

. This level of institutional support is more than speculation; it represents a calculated investment in Hyperliquid’s capacity to expand liquidity and secure a leading position in perpetuals.

Additionally, the HYPE staking mechanism is crucial for institutional engagement.

, effectively locking up liquidity and creating deflationary pressure on the token. This system aligns institutional interests with the platform’s growth, as larger stakes grant more governance power and yield opportunities.

Conclusion: Redefining Derivatives Trading

Hyperliquid’s recent growth is the result of deliberate changes in liquidity management and institutional engagement. Through fee reductions, open market access, and strategic treasury support, the platform has reshaped the crypto derivatives environment. For investors, the takeaway is clear: Hyperliquid is not just gaining ground—it is establishing the blueprint for the next generation of perpetuals trading in DeFi.

With the December 2 deadline for the Hyperliquid Strategies merger approaching, the industry is paying close attention. If the deal goes through, it could usher in a new era for institutional-grade crypto derivatives, where liquidity, governance, and token economics work together to form a sustainable ecosystem.