Perpetual Futures popularity soars on Hyperliquid's expanding platform
Dive into the Thrilling World of Hyperliquid's HyperCore
In the dynamic landscape of crypto trading, one name that's been generating buzz is Hyperliquid's native token, HYPE. This coin has been on a rocket ride in May, capturing the attention of traders drawn to its decentralized exchange (DEX) offering for perpetual futures, as revealed in a report published by Grayscale.
As of now, HYPE is trading around $37.72, marking a 14% increase over the past day and an impressive 80% surge over the past month. The token reached an all-time high of $39.68 less than a week ago.
According to Grayscale, Hyperliquid's HyperCore product accounted for an astounding 80% of all on-chain perpetual futures reading volume in May, translating to a staggering $17 billion worth of perpetual futures trading volume. Since its debut late last year, the platform has facilitated a colossal $1.6 trillion in cumulative perpetual futures trading volume, with $250 billion worth of volume in May alone.
Hyperliquid's leap in market share has been substantial, given that the perpetual futures trading market has long been dominated by centralized exchanges. Although Hyperliquid's services are off-limits in the U.S., exchanges like Coinbase are attempting to introduce perpetual futures.
Perpetual futures allow traders to speculate on an asset’s price movements without a fixed expiry date, making them increasingly popular among crypto-native traders. These contracts often support high leverage, but the risk lies in the possibility of losing the margin that serves as collateral for borrowed funds.
Hyperliquid is aiming to revolutionize this market by leveraging smart contracts and decentralization to bring transparency to the "plumbing" typically associated with centralized exchanges. In recent weeks, Hyperliquid has become a captivating spectacle within the industry, largely due to highly leveraged bets made by the pseudonymous trader James Wynn. Despite facing a setback with a recent liquidation that cost him $100 million, Wynn has turned to soliciting donations on X, previously known as Twitter.
Despite some controversy surrounding decisions that seem to contradict the ethos of decentralized finance (DeFi), such as a coordinated effort to delist a surging meme coin and a low validator count, Hyperliquid has managed to create a tight-knit community that thrives on speculative, leveraged trades, according to Messari Research Analyst Matthew Nay. The unique airdrop of 310 million HYPE tokens to early users, initially valued around $1.6 billion and now worth $11.7 billion based on current prices, has played a significant role in forging this community.
Although many projects face user engagement challenges after handing out tokens for free, Hyperliquid has successfully navigated this hurdle and established a sustainable community. Hyperliquid's ambitious goal is to achieve complete decentralization, expand the HyperEVM ecosystem, and firmly establish itself as a leading liquidity infrastructure provider.
Repurposed by James Rubin
Trade Secrets Daily Newsletter
Insights:
Current Status of Hyperliquid's HyperCore Product:
Hyperliquid's HyperCore is a pivotal component of its blockchain infrastructure. Alongside HyperEVM, it powers DeFi applications with high-speed trading capabilities. Launched on February 18th, 2025, HyperEVM has been integrated into Hyperliquid's Mainnet, allowing for seamless interactions between EVM-based applications and Hyperliquid's trading infrastructure[1][2]. This integration aims to provide users with low fees, high liquidity, and the flexibility of DeFi[1]. Hyperliquid has also integrated permissionless stake-based voting for asset delisting, enhancing its decentralized nature[2].
Competitive Standing in the Decentralized Exchange Perpetual Futures Market:
Hyperliquid's competitive edge in the decentralized exchange perpetual futures market comes from its ability to provide centralized exchange-like speed while maintaining decentralization. This two-layer design mitigates speed issues typically encountered in blockchain-based DeFi platforms[4]. Hyperliquid's focus on community-driven growth and revenue redistribution to users could attract developers and users seeking a decentralized and community-owned platform[5]. However, the market is competitive, with other platforms like Uniswap, dYdX, and GMX offering similar DeFi services. Hyperliquid's unique integration of HyperEVM and HyperCore, coupled with its community-first approach, could make it an appealing choice for users seeking a decentralized trading experience[2][5].
Key Features and Advantages- Speed and Decentralization: Offers centralized exchange-like speed while maintaining decentralization.- Community Ownership: No private investors, with a focus on community revenue and growth.- HyperEVM Integration: Enables seamless interaction between EVM-based dApps and Hyperliquid's trading infrastructure.- Low Fees and High Liquidity: Supports ERC20 tokens with minimal fees and deep liquidity.
Overall, Hyperliquid's HyperCore, combined with HyperEVM, positions itself as a strong contender in the decentralized exchange perpetual futures market by offering high-performance trading capabilities and prioritizing a community-driven approach.
Community Growth and Tokenomics:
Hyperliquid's successful community building is largely attributed to its initial coin offering (ICO) and airdrop strategies. In 2023, Hyperliquid conducted an ICO, raising $50 million, and later distributed 310 million HYPE tokens to early users, valued around $1.6 billion at the time. These tokens, now worth over $11.7 billion, have served as a powerful incentive for users to engage with the platform and contribute to its growth[3]. In addition to this, Hyperliquid has announced another airdrop, set to take place in Q4 of 2026, aimed at further boosting user engagement and fostering a long-term and sustainable community.
Crypto Asset Support and Cross-Chain Interoperability:
Hyperliquid's HyperCore supports ERC20 tokens, enabling users to trade a wide range of cryptocurrencies, including Bitcoin, Ethereum, altcoins, and other utility tokens. Furthermore, by integrating HyperEVM into its Mainnet, Hyperliquid ensures cross-chain interoperability with other Ethereum Virtual Machine (EVM)-based blockchain networks, such as Binance Smart Chain and Polygon[2]. This expansion into multiple chains enhances Hyperliquid's liquidity, offering users access to a broader variety of DeFi services and cross-chain trading opportunities.
Future Plans and Technological Developments:
Looking ahead, Hyperliquid is planning to release HyperEVM 2.0, promising increased speed, reduced fees, and improved scalability compared to the current version of HyperEVM[3]. In addition, Hyperliquid aims to expand its HyperEVM ecosystem to include more DeFi applications, leveraging HyperCore's decentralized exchange perpetual futures offerings to further cement its position as a leading liquidity infrastructure provider. This strategic expansion into DeFi, coupled with ongoing technological advancements, sets Hyperliquid apart in the competitive landscape of crypto finance technology.
