Hyperliquid's Growing Popularity and Trading Volume: Evaluating Its Potential as a Lasting DeFi Investment

Hyperliquid’s Rise in the 2025 DeFi Market

By 2025, the decentralized finance sector has undergone dramatic changes, with Hyperliquid establishing itself as a leading player in the perpetual derivatives arena. As trading volumes soar and speculation intensifies, stakeholders are questioning whether Hyperliquid’s rapid expansion can deliver enduring value. This overview examines Hyperliquid’s market achievements, technological advancements, and competitive stance, while also considering the main risks that could influence its future.

Unprecedented Growth: Hyperliquid’s Performance and Market Share

Hyperliquid has experienced remarkable increases in both trading activity and user engagement. In July 2025 alone, the platform handled $330 billion in trades, briefly outpacing major centralized exchanges such as Robinhood. By the end of the year, total perpetual futures trading volume had reached $2.74 trillion, rivaling the activity seen on Coinbase. On average, daily trading volumes stood at $15.6 billion, with open interest peaking at $133.5 billion.

User participation has surged as well, with 825,000 daily active addresses and 3.65 million monthly users reported. This expansion is supported by a strong ecosystem, featuring staking solutions like Kinetiq and Pendle, which together contributed $372 million in total value locked (TVL) to Hyperliquid’s HLP vault by mid-2025. However, Hyperliquid’s dominance in the decentralized perpetuals space has been challenged. Its share of the market, which was 73% at the start of 2025, fell to 38% by year’s end as new competitors, such as Aster, gained traction.

Competitive Dynamics: Hyperliquid and Its Challengers

The competitive landscape has become increasingly crowded, with platforms like Aster, Lighter, and EdgeX vying for market share. Aster, for example, saw daily volumes reach $70 billion and captured half of the market at its peak, though questions arose regarding the authenticity of its reported activity, which closely resembled Binance’s metrics. Lighter and EdgeX have attracted users with low fees and robust infrastructure, but their open interest remains well below that of Hyperliquid.

Hyperliquid’s strength lies in its technical foundation. Its proprietary Layer 1 blockchain, HyperBFT, delivers sub-second transaction finality and can process up to 200,000 transactions per second. The introduction of the HyperEVM layer in February 2025 expanded the platform’s capabilities by enabling smart contract support. Analysts highlight that Hyperliquid accounted for 62–63% of open interest within the Perp DEX ecosystem in the fourth quarter of 2025, underscoring its deep liquidity and appeal to institutional participants.

Governance and Innovation: Foundations for Future Growth

Hyperliquid’s approach to governance sets it apart from many rivals. Initiatives such as HIP-1 and HIP-3 enable the creation of new markets and token listings without centralized approval, fostering adaptability. HIP-1 introduced a governance-driven process for listing tokens, while HIP-3 opened the door to perpetual markets for a wide range of assets, including both digital currencies and traditional equities. These features position Hyperliquid to compete with both established and emerging platforms.

The platform’s deflationary mechanisms further enhance token value. A buyback and burn program allocates 93% of protocol fees to HYPE token holders. By mid-2025, the platform’s TVL exceeded $5 billion, and open interest reached $15 billion. Financial stability is reinforced by partnerships with major institutions such as BlackRock and Stripe, as well as SEC-approved ETF applications.

Risks and Regulatory Hurdles

Despite its advantages, Hyperliquid faces notable risks. Regulatory oversight, especially from U.S. authorities, remains a significant concern as scrutiny of DeFi intensifies. A $4.9 million loss due to manipulative bidding in late 2025 exposed vulnerabilities in the platform’s security. The drop in market share to 38% also highlights the ongoing need for innovation to retain both liquidity providers and traders.

Outlook: High Potential Amid Uncertainty

Hyperliquid’s robust technology, flexible governance, and institutional alliances make it a formidable force in decentralized finance. Its ability to sustain high open interest and respond to competitive pressures suggests strong long-term prospects. Nevertheless, regulatory challenges, security issues, and the inherent volatility of DeFi markets mean that investors should approach with caution. Hyperliquid offers significant growth opportunities, but close attention to broader economic trends and platform developments is essential.