September 1, 2025: Perpetual futures (perps) remain crypto’s favorite gamble—24/7, no expiry, high leverage. The venue where most of that action now lands is Hyperliquid, a decentralized exchange (DEX) built on its own chain that, in barely two years, has become many traders’ default.
At a glance — why Hyperliquid stands out
- Market share: Commands ~70–80% of perp volume.
- Throughput vs. fintechs: In July, processed ~$300B trading vs. Robinhood’s $237.8B.
- Revenue scale: ~$100M revenue in August → ~$1.4B annualized run rate (Artemis est.).
- Team size: ~11 people.
- Token: HYPE market cap nearing $12B.
Product & execution
Founded by Jeff Yan (ex-Hudson River Trading), Hyperliquid built a low-latency DEX that rivals centralized exchanges on speed and precision, according to independent analytics commentary. It’s offshore and typically no-KYC, which broadens access (and regulatory questions) for global users.
The airdrop & buyback flywheel
- $7.5B airdrop: Late-2024 distribution to ~94,000 early users supercharged adoption.
- 99% fees → buybacks: Hyperliquid directs almost all fees to buy back HYPE, a rare, community-tilted token design.
- Loop: Airdrop → users trade → fees rise → buybacks lift HYPE → more users trade.
Beyond perps: spot & new markets
Hyperliquid is expanding into spot trading (recent daily peak ~$3.4B, with ~$1.5B from bitcoin), plus a growing set of native stablecoins. An upcoming HIP-3 upgrade aims to enable perps on non-crypto assets such as gold, the S&P 500, and single stocks—if executed, that blurs lines between on-chain venues and traditional markets.
Why perps make money (for exchanges)
Perps are simpler than options, always on, and offer leverage—traits tailor-made for “chronically online” speculators. That translates into high fee velocity. As one developer quips, many perp traders are willing to “roll the dice” repeatedly for asymmetric upside.
Competitive landscape
- Coinbase launched CFTC-regulated BTC/ETH perps (leverage ~10×) for U.S. access.
- Robinhood rolled out perps in the EU (~3× leverage), likely eyeing broader expansion.
- Challengers flood in: New exchanges often repeat a cycle: rapid growth → token launch → token underperforms → traders migrate.
Risks & realities
- Regulation: Offshore, no-KYC venues can face sudden policy shifts.
- Leverage risk: 40× leverage magnifies liquidations and tail events.
- Token dynamics: Buybacks rely on sustained fees; a lull could test HYPE’s support.
Note: Figures and quotations are drawn from recent industry reporting and analytics referenced in the source material. This article is not investment advice.
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