Founded in 2023, the decentralized exchange Hyperliquid quickly captured the derivatives market, achieving over 80% market share through innovative solutions.
Growth Factors of Hyperliquid
According to a report by RedStone, Hyperliquid's success is attributed to three key structural features:
1. A fully on-chain order book that matches centralized platforms in spreads and execution speed. 2. HIP-3, a model allowing permissionless market creation and directing more revenue to developers. 3. A dual-layer architecture built on HyperCore and HyperEVM, enabling new tools such as tokenized perpetuals and delta-neutral strategies.
Comparison with Competitors
Hyperliquid has grown without external venture funding, contrasting with rivals like dYdX and GMX that raised millions in funding rounds. dYdX currently holds less than 2% market share compared to Hyperliquid's over 80%.
Market Performance of Hyperliquid
Data from DefiLlama shows that the Hyperliquid network has $2.2 billion in total value locked, and the exchange processed $330 billion in trades over the past 30 days. Daily trading volumes peaked above $27 billion on August 14, placing Hyperliquid on par with some mid-tier centralized exchanges.
The report argues that Hyperliquid is setting new standards in decentralized finance by promoting competitiveness through its system design and community-driven incentives.
