Key Insights
- Hyperliquid hit $320B in trading volume in July, up 47% month-on-month.
- The platform earned 35% of all blockchain revenue in July, primarily by attracting high-value users from both Solana and Ethereum.
- $HYPE hit an all-time high of $49.75 during the month. However, it has since cooled off amid the rise in volatility and a decline in open interest.
After delivering its strongest performance, Hyperliquid has cemented its position as the best-performing perpetual futures DEX.
The decentralised exchange posted an incredible $320 billion trading volume in July. This stands as a massive 47% increase from the previous month.
This kind of growth came amid a highly volatile crypto market throughout the month. It was primarily driven by altcoin trading activity.
Hyperliquid Surges in Volume and Open Interest
Hyperliquid’s success in July wasn’t just about volume. The platform also saw open interest jump past $15 billion for the first time. This means traders placed more capital in active positions on the platform.
According to DeFiLlama, Hyperliquid now commands 11.9% of Binance’s futures volume. It’s a significant feat for a decentralised platform.
Its reputation for offering users high-leverage trades has been one of its most attractive features. It’s bliss for traders comfortable with higher risk and (possibly) higher rewards.
Despite this success, Hyperliquid has come under scrutiny for a few reasons. For starters, it is a no-KYC platform. Its fully on-chain nature makes it attractive to many users. However, it also experiences frequent public liquidations when the market swings.
Why Hyperliquid Keeps Winning in the Perps Market
One primary reason that Hyperliquid continues outperforming other DEXs is its user experience and trading features, compared to other platforms.
Networks like Solana have struggled with reliability and missed upgrade milestones. However, Hyperliquid has quietly built a reputation for delivering on its promises.
VanEck said Hyperliquid captured 35% of all blockchain revenue in July. Much of this came at the expense of other networks like Solana, Ethereum, and BNB Chain. VanEck analysts believe that Hyperliquid’s edge came from its simplicity and functionality.
“Hyperliquid has poached high-value users from Solana and has retained them,” VanEck’s Matthew Sigel and his team wrote.
The Platform’s integration with Phantom Wallet was another primary reason for its massive onboarding of new users. In-app perpetuals trading via Phantom led to $2.66 billion in volume during the month.
Further, it generated $1.3 million in fees. In sum, the number of new users on the platform in July alone shot up to 21,000.
HYPE Token Peaks, Then Pulls Back
Hyperliquid’s native token, HYPE, was another major factor that delivered such a busy month for the platform. The token hit a peak of $49.75 on July 14, after climbing from just $10 in early April. However, it has since pulled back and is trading around $37.38 as of writing, at the start of August.
Over 70% of traders are still long on HYPE. This means that the market is still vulnerable to sudden downturns.
Coinglass data showed that the open interest on HYPE has dropped to $1.46 billion. With this, $1.1 billion is still held on Hyperliquid.
High-Profile Traders Influence Market Sentiment
Some big names in crypto trading are now rethinking their exposure to Hyperliquid. For example, a well-known trader, James Wynn, recently announced that he was taking a break from perpetual futures.
Now, he is focusing instead on meme tokens. He closed all positions on Hyperliquid by early August.
Meanwades made headlines by, as of writing, taking risky positions like Wynn. Aguila Trades currently has a 40x BTC short, which is now at risk of liquidation. After peaking, the trader reportedly lost over $35 million in July alone.
On the other hand, a more conservative trader known as White Whale has gained attention. He has achieved this fame for being calm and methodical compared to the other two.
Hyperliquid Challenges CEX Dominance
Centralised exchanges currently hold the lion’s share of the derivatives market. However, Hyperliquid proves that a decentralised, no-KYC, and on-chain solution can compete.
Hyperliquid’s catering to whales, high leverage, and strong user experience has made it the go-to choice for serious perp traders.
In all, its cumulative growth this year has been undeniable. Open interest is up 369% year-to-date, and over $5.1 billion USDC has been bridged into the platform. The question is whether this strength can bleed into the price of HYPE and cause a surge above the $49.5 local high.
