Hyperliquid (HYPE) : The High-Speed DEX Redefining DeFi Trading in 2025

What is Hyperliquid ?

Hyperliquid isn’t just another DEX in the saturated DeFi ecosystem. It’s a high-performance Layer-1 blockchain specifically designed to create a fully on-chain open financial system. This fundamentally different approach immediately sets it apart from the competition.

What if you could trade with the efficiency of a CEX while maintaining complete control of your funds? That’s exactly what Hyperliquid offers. Unlike platforms like dYdX or Perpetual Protocol built on existing blockchains (Ethereum, Solana, etc.), Hyperliquid made the bold choice to develop its own blockchain infrastructure. This strategic decision isn’t trivial: it allows optimization of every aspect of the architecture to meet the specific requirements of perpetual futures contract trading.

“Hyperliquid represents the natural evolution of decentralized exchanges, combining DeFi security with the performance of centralized platforms.”

The fundamental concept driving Hyperliquid is based on the seamless integration of liquidity, user applications, and trading activity into a unified system. This holistic approach aims to encompass all aspects of decentralized finance while providing a user experience comparable to centralized platforms in terms of speed and efficiency.

Hyperliquid’s Unique Value Proposition

The true revolution of Hyperliquid lies in its ability to bridge the technological gap that has until now separated DEXs from CEXs. Here are the pillars of its value proposition :

• Unmatched performance : Transaction finality in a single block with a median latency of just 0.2 seconds
• Zero gas fees : Complete elimination of gas fees that weigh down the experience on other DEXs
• Total transparency : Fully on-chain order book, ensuring absolute transparency
• Powerful leverage : Trading with leverage up to 50x to maximize opportunities
• Community approach : Fair token distribution without preferential allocation to VCs

In the current cryptocurrency landscape, Hyperliquid also stands out for its strategic positioning. While many projects focus on specific niches, Hyperliquid adopts a more global vision by seeking to fundamentally transform how digital assets are exchanged.

This ambition translates into rapid growth and significant adoption, as evidenced by its market capitalization ranging between $4.19 and $4.79 billion as of April 1, 2025. Placing its HYPE token between 27th and 32nd place among all cryptocurrencies.

How Does Hyperliquid Work ?

Hyperliquid’s blockchain architecture forms the foundation of its value proposition and largely explains its exceptional performance. This custom infrastructure relies on three main components that work in synergy to deliver an optimal trading experience.

HyperCore : The Ultra-Fast Perpetual Contracts Engine

At the heart of the system is HyperCore, a fully on-chain perpetual and spot order book system capable of processing up to 200,000 orders per second. This impressive capacity shatters the usual standards of traditional blockchains and approaches the performance of the most advanced centralized financial systems.

Did you know ? Hyperliquid can process up to 200,000 transactions per second, nearly 100 times more than the Ethereum blockchain.

One of the most remarkable features of HyperCore is its ability to execute every transaction, cancellation, and liquidation with complete transparency and finality in a single block, thus eliminating uncertainties related to multiple confirmations that often affect transactions on other blockchains.

HyperBFT : Innovative Consensus for Instant Transactions

The consensus mechanism securing this architecture is called HyperBFT, inspired by the Hotstuff protocol and its successors. This system guarantees :

• Single-block finality : Transactions are definitively confirmed after a single block
• Median latency of 0.2 seconds (99th percentile at 0.9 seconds)
• Processing capacity of over 200,000 TPS
• Enhanced security against double-spending attacks and other vulnerabilities

HyperBFT uses a proof of stake mechanism to secure the network, where HYPE holders can participate in staking to contribute to network security while receiving rewards.

HyperEVM : Ethereum Compatibility Without the Limitations

Complementing HyperCore, Hyperliquid has developed HyperEVM, an integrated Ethereum Virtual Machine (EVM) that allows developers to build smart contracts while benefiting from HyperBFT’s security and HyperCore’s liquidity.

This compatibility with the Ethereum ecosystem facilitates adoption by developers already familiar with this environment, while offering significantly superior performance. It’s a strategic bridge between the established Ethereum ecosystem and Hyperliquid’s advanced capabilities.

Technical Innovations That Change the Game

Several technical innovations distinguish Hyperliquid from its competitors :

1. Fully on-chain order book : Unlike many DEXs that use hybrid or off-chain solutions for their order books, Hyperliquid maintains its entire order book on the blockchain, ensuring complete transparency of transactions.
2. Innovative token standards :
   • HIP-1: A native token standard with built-in trading functionality
   • HIP-2: A standard that permanently links liquidity to HIP-1 tokens, solving liquidity problems from issuance
3. Vault system : Enables deep on-chain liquidity and automated trading strategies, paving the way for more sophisticated DeFi applications.
4. Unique auction mechanism : An innovative process for token deployment, using an auction system to determine gas fees.

This combination of advanced technical features allows Hyperliquid to offer an experience comparable to centralized exchanges while preserving the fundamental advantages of decentralization.

Hyperliquid in Numbers : Explosive Growth Making CEXs Tremble

How can we explain that a platform launched less than 3 years ago already dominates 78.8% of the DEX futures market ? Hyperliquid’s figures tell a story of explosive growth that’s already making the industry’s centralized giants tremble. Let’s examine the statistics that illustrate this platform’s remarkable adoption.

Overwhelming Dominance in the DEX Futures Market

Hyperliquid has established itself as the undisputed leader in decentralized futures contract exchanges :

• Market share : 78.8% of total DEX futures volume (according to The Block)
• Monthly volume : Over $225 million in December 2024
• Growth : 25.3x increase in volume in 2024 (according to CoinShares)
• Ranking : Leading perpetual futures DEX in terms of volume

This dominant position in the DEX futures segment illustrates the platform’s strong adoption by traders and investors, and shows that Hyperliquid has found exceptional product-market fit.

Impressive Adoption Statistics

According to Hyperliquid’s official statistics, the platform has experienced remarkable adoption in a short time :

• Total users : 412,016 unique users
• Total trading volume : Over $1.137 trillion
• Total deposits : $32.62 billion
• Total withdrawals : $30.73 billion
• Total notional liquidations : $35.17 billion

These figures are particularly impressive considering that the platform was launched in late 2022 and its token was only distributed in late 2024.

HYPE Price Evolution : A Volatile but Promising Trajectory

The journey of HYPE’s price since its launch demonstrates sustained interest in the project:

• Launch price (November 2024) : Approximately $2 to $3.90
• First week : Increase of over 200%
• December 2024 : Rise from $2 to approximately $12.8 (+500%)
• All-time high (ATH) : Nearly $35 in January-February 2025
• Recent consolidation : Fluctuating around $14.5 as of March 21, 2025

Did you know? The HYPE token experienced growth of over 500% in less than a month after its launch in late 2024.

Several key events marked this evolution :

• December 5, 2024 : Record volume with $8.5 billion in 24 hours
• December 2024 : Announcement of the Hyperlend protocol
• March 2025 : Security incident having a temporary impact on the price

Market Cap and Tokenomics

The HYPE token presents a balanced tokenomics profile :

• Market capitalization : Between $4.19 and $4.79 billion (April 1, 2025)
• Ranking : Between 27th and 32nd place among all cryptocurrencies
• Current price : Between €12.57 and $13.50
• Circulating supply : 333.92 million HYPE (approximately 1/3 of total supply)
• Total supply : 999.99 million HYPE

The initial distribution via an airdrop representing 31% of the total supply constitutes a particularly fair and community-oriented approach, creating a base of user-owners aligned with the project’s long-term interests.

The Team Behind Hyperliquid : Experts Who Challenge Conventions

The team behind Hyperliquid, known as Hyperliquid Labs, constitutes one of the project’s major assets. Composed of highly qualified professionals from prestigious institutions and leading companies, it brings diverse and complementary expertise that has played a crucial role in the platform’s development and success.

The Visionary Founders : Jeff Yan and Iliensinc

At the head of this team is Jeff Yan, co-founder and CEO of Hyperliquid. His background is impressive :

• Harvard graduate with an AB/SM in Mathematics and Computer Science (2017)
• Former employee of Hudson River Trading, a leading market making company
• Expert at the intersection of engineering and mathematics applied to financial markets
• Pioneer in crypto trading since 2018
• Led one of the largest market making operations on CEXs before creating Hyperliquid

Alongside him, Iliensinc, also a Harvard graduate, brings complementary expertise in finance and blockchain technology. A classmate of Jeff, he collaborated with him in the field of market making before co-founding Hyperliquid.

The Unique Self-Funding Approach : A Case Study in Crypto

Did you know? The Hyperliquid team chose to self-fund entirely, refusing any venture capital investment to stay aligned with the interests of its community.

What truly distinguishes Hyperliquid Labs in the crypto ecosystem is its self-funding approach. Unlike the vast majority of projects that raise funds from venture capital investors, the team chose to remain entirely self-funded.

This strategic decision presents several major advantages :

• Complete independence in strategic and technical decisions
• Alignment of interests with the community rather than institutional investors
• Focus on innovation without pressure for short-term returns
• Enhanced credibility with a crypto community increasingly wary of VC influence

According to some sources, the team has never paid themselves salaries, demonstrating total commitment to the project and absolute confidence in its long-term potential.

The Community Philosophy That Changes the Game

The vision and philosophy guiding the Hyperliquid team are clearly defined and consistent :

• Main objective : Combine the efficiency of centralized exchanges with the transparency of DeFi
• Focus on product : Priority given to creating a product that users appreciate
• Commitment to decentralization : Conviction that offering a better user experience and truly decentralized systems is the path to real market change

This philosophy is reflected in the team’s strategic decisions, notably their choice to distribute a significant portion of tokens via a community airdrop rather than favoring institutional investors.

The Technical Expertise of the Extended Team

The extended Hyperliquid team includes experts from prestigious academic institutions such as Harvard, Caltech, MIT, and renowned companies like Citadel, Hudson River Trading, and Nuro.

This concentration of talent in mathematics, computer science, quantitative finance, and blockchain technology has enabled Hyperliquid to develop innovative technical solutions that push the boundaries of what was previously possible in DeFi.

Features That Make Hyperliquid a Game-Changer

Why are professional traders massively migrating to Hyperliquid in 2025? Hyperliquid stands out with a set of advanced features that meet the needs of the most demanding traders while remaining accessible to new users. These technical and functional characteristics form the core of the platform’s value proposition.

Gas-Free Trading : The Innovation That Changes Everything

One of Hyperliquid’s major innovations is the complete elimination of gas fees for transactions. In most blockchains, particularly Ethereum, users must pay gas fees for each transaction, which can represent a significant cost, especially during network congestion periods.

By removing these fees, Hyperliquid considerably reduces the total cost of trading and eliminates a significant barrier to the mass adoption of DeFi solutions. This feature is particularly appreciated by active traders who execute numerous transactions and market makers who frequently place and cancel orders.

Leverage Up to 50x : For Traders Aiming for the Moon

Hyperliquid offers leverage of up to 50x, allowing traders to maximize their market exposure with limited capital. This feature, generally reserved for centralized platforms, is now available in a decentralized and transparent environment.

Warning : Leverage amplifies both gains and losses. Never trade with money you cannot afford to lose.

While leverage amplifies both potential gains and losses, it offers experienced traders a powerful tool to execute sophisticated strategies and capitalize on short-term market movements.

Innovative Token Standards : HIP-1 and HIP-2

Hyperliquid has introduced two innovative token standards that enrich its ecosystem :

1. HIP-1 : A native token standard with integrated trading features, facilitating the integration of new assets into the ecosystem.
2. HIP-2 : A standard that permanently links liquidity to HIP-1 tokens, thus solving liquidity problems from issuance.

These technical innovations contribute to creating a smoother and more efficient trading environment, particularly for new tokens and emerging projects.

Vault System and Auction Mechanism

Hyperliquid’s vault system enables deep on-chain liquidity and automated trading strategies. These vaults function as programmable liquidity pools that can execute predefined strategies, offering new possibilities for traders and liquidity providers.

The auction mechanism for token deployment constitutes a unique approach in the crypto ecosystem. This process uses an auction system to determine gas fees during the launch of new tokens, creating an efficient market mechanism that reflects the real demand for these new assets.

Scale Orders and Advanced Trading Features

Scale orders allow users to set up sophisticated trading strategies by automatically placing multiple orders at different price levels. This feature, generally reserved for professional trading platforms, is particularly useful for market makers and traders who want to optimize their entry or exit of significant positions.

Good to know : Use Hyperliquid’s scale orders to optimize your average entry price when opening large positions.

Hyperliquid also supports trading of memecoins and pre-launch tokens, positioning the platform as a preferred hub for emerging assets and innovative projects.

Competitive Fees and Buyback and Burn Program

Hyperliquid’s competitive fee structure also contributes to its attractiveness :

• 0.01% for makers (those providing liquidity)
• 0.035% for takers (those consuming liquidity)
• Discounts based on monthly volume

The buyback and burn mechanism allocates a portion of the revenue generated by the platform to buying back and destroying HYPE tokens, creating deflationary pressure that can support the token’s value in the long term.

How to Profit from Hyperliquid Right Now

Hyperliquid offers a diverse range of use cases that address the varied needs of participants in the cryptocurrency market. Here’s how you can benefit from this innovative platform today.

Decentralized Perpetual Futures Trading

Hyperliquid’s primary use case is perpetual futures contract trading in a fully decentralized environment. If you’re an active trader, here are the key advantages you can leverage :

• Complete control of your funds : Unlike CEXs, you maintain control of your assets at all times
• Transaction transparency : All operations are visible on-chain
• Reduced costs : No gas fees and competitive commissions
• Ultra-fast execution : Latency comparable to centralized platforms
• Powerful leverage : Up to 50x to maximize your positions

To get started, simply connect your compatible wallet, deposit assets via HyBridge, and you’re ready to trade.

Launching and Trading New Tokens

Hyperliquid has become a platform of choice for launching and trading new tokens, particularly in the memecoin sector. If you’re a developer or an early-stage investor, you can :

• Use the unique auction system for deploying new tokens
• Benefit from the HIP-1 and HIP-2 standards to guarantee liquidity from launch
• Access Hypurr Fun (HFUN), the platform dedicated to “trench hunters”

This functionality is particularly relevant in the current context where memecoins and emerging tokens continue to generate significant interest in the crypto community.

Social and Competitive Trading with PVP.Trade

Social and competitive trading represents an innovative use case developed by Hyperliquid. PVP.Trade, a Telegram bot integrated with the ecosystem, allows you to :

• Participate in trading competitions
• Track the performance of other traders
• Create decentralized copy-trading strategies
• Accumulate points through active trading to influence future rewards

Good to know : Follow high-performing traders via PVP.Trade to observe their strategies before developing your own.

This social dimension of trading responds to a growing trend in the financial industry, where community aspects and peer learning are gaining importance.

Cross-Chain Gateway with HyBridge

HyBridge, Hyperliquid’s cross-chain bridging tool, facilitates interoperability between different blockchains. You can use it to :

• Transfer assets from Ethereum, Solana, and other blockchains to the Hyperliquid ecosystem
• Access Hyperliquid’s liquidity and features with your existing assets
• Seamlessly diversify your cross-chain portfolio

In an increasingly fragmented crypto ecosystem across different blockchains, this interoperability capability constitutes a significant competitive advantage and a practical use case for users.

Hyperliquid vs the Competition : Why It Dominates the DEX Futures Market

The competitive landscape in which Hyperliquid operates is complex and constantly evolving. Understanding how it positions itself against direct rivals and centralized giants (CEXs) helps to better grasp its unique value proposition.

Comparison with Other DEXs (Jupiter, ApeX, Drift, dYdX)

Among Hyperliquid’s direct competitors in the perpetual futures DEX segment, several platforms stand out :

Platform	Strengths	Limitations
Jupiter	Liquidity aggregation, execution optimization	Performance limited by the underlying blockchain
ApeX	Intuitive interface, social features	Fewer trading pairs, lower liquidity
Drift	Innovative mechanisms against liquidations	Limited leverage effect (up to 20x)
dYdX	Cosmos-based blockchain, first generation	Less smooth user experience, higher fees

Despite the quality of these competitors, Hyperliquid maintains several decisive competitive advantages :

1. Its custom Layer-1 blockchain offers superior performance in terms of latency and processing capacity
2. The elimination of gas fees significantly reduces the total cost of trading
3. The community approach and fair token distribution have created a particularly engaged user base
4. The integrated ecosystem (Hypurr Fun, PVP.Trade, HyBridge) offers a more complete value proposition

Challenging Centralized Exchanges

Against centralized giants like Binance, Kraken, or Bybit, Hyperliquid adopts a clear differentiation strategy :

• Transparency vs. Opacity : All transactions and orders are visible on-chain, unlike CEXs where operations occur in a black box
• Fund Control vs. Deposit : Users maintain control of their assets, eliminating counterparty risk
• Community vs. Corporation : Progressive governance by token holders rather than centralized decisions
• Technical Innovation vs. Status Quo : Dedicated blockchain architecture vs. traditional proprietary systems

Although CEXs retain certain advantages (notably in terms of global liquidity and diversity of trading pairs), Hyperliquid is rapidly closing the performance gap that traditionally existed between centralized and decentralized solutions.

Technical and Community Differentiation Factors

Hyperliquid’s dominance in the DEX futures segment (78.8% market share) is explained by a unique combination of technical and community factors :

Technical differentiators :

• Single-block transaction finality (0.2 seconds)
• Processing capacity of 200,000 TPS
• Fully on-chain order book
• Innovative token standards (HIP-1, HIP-2)
• No gas fees

Community differentiators :

• Fair distribution via airdrop (31% of supply)
• Absence of institutional investors
• Self-funded team aligned with user interests
• Strong community engagement via PVP.Trade and the points system
• Complete operational transparency

This unique combination creates a virtuous circle where technical excellence attracts users, who in turn strengthen the platform’s liquidity and adoption.

Risks and Challenges : What You Need to Know Before Investing

Despite its promising outlook and impressive growth, Hyperliquid faces several significant risks and challenges that any potential investor or user should carefully evaluate.

The March 2025 Security Incident : Lessons Learned

In March 2025, Hyperliquid experienced a major security incident that resulted in a $170 million outflow of funds in 24 hours. This mechanism exploitation raised legitimate questions about the security of the platform’s smart contracts.

The Hyperliquid blockchain has been upgraded to feature fully onchain validator voting for asset delisting. When a quorum of stake has voted for a delisting, the action automatically triggers onchain. This permissionless stake-based vote weighting primitive is built natively into…

— Hyperliquid (@HyperliquidX) March 28, 2025

Warning : Despite security improvements, the March 2025 incident reminds us that even the most sophisticated protocols involve risks.

This event reminds us that even the most sophisticated protocols are not immune to vulnerabilities, especially in a field as complex as decentralized perpetual futures contracts.

Following this incident, the team :

• Implemented additional security audits
• Strengthened anomaly detection mechanisms
• Improved transparency of update processes
• Established an insurance fund to protect users

Although these measures enhance security, the inherent risk in smart contracts remains a factor to seriously consider.

Regulatory Risks to Watch

The regulatory framework surrounding cryptocurrencies and DeFi continues to evolve rapidly, with varying approaches across jurisdictions. Several regulatory risks weigh on Hyperliquid :

• Potential classification of the HYPE token as a financial security in certain jurisdictions
• Restrictions on perpetual futures contracts in some countries
• KYC/AML requirements that could affect platform accessibility
• Global regulatory uncertainty regarding decentralized trading platforms

These regulatory risks could limit Hyperliquid’s geographical expansion and fragment its user base, potentially affecting liquidity and long-term adoption.

Dependence on the Memecoin Market

A significant portion of activity on Hyperliquid is related to the memecoin sector, which is particularly volatile and unpredictable. This sectoral concentration creates a vulnerability :

• A slowdown in memecoin enthusiasm could negatively affect trading volumes
• The extreme volatility of this segment can lead to massive liquidations
• Changing trends in the crypto ecosystem could reduce the appeal of this niche

To mitigate this risk, Hyperliquid will need to diversify its use cases and attract traders interested in other segments of the crypto market.

Residual Centralization and Other Points of Attention

Although the platform presents itself as decentralized, certain aspects of Hyperliquid retain residual centralization :

• Some critical functions remain under the founding team’s control
• Protocol updates still follow a relatively centralized process
• Truly decentralized governance remains a goal to achieve rather than a current reality

Other points of attention include :

• Dilution risk : With only about one-third of the total supply in circulation, future token releases could exert downward pressure on the price
• Dependence on the founding team : Excessive dependence on a few key individuals creates a continuity risk
• Growing competition : Other platforms are actively developing similar features

These risks and challenges highlight the importance of a cautious and informed approach for potential Hyperliquid investors and users.

The Future of Hyperliquid : Outlook and Expected Developments

Hyperliquid’s future looks both promising and challenging, with an ambitious roadmap that could significantly transform the platform’s ecosystem and its positioning in the broader decentralized finance landscape.

HyperEVM Expansion and Hyperlend Launch

Among the planned technological developments, the expansion of HyperEVM is at the top of the list. This evolution will include :

• Enhanced smart contract capabilities
• Strengthened interoperability with other blockchain ecosystems
• Development of tools to facilitate the creation of decentralized applications

The launch of Hyperlend represents one of the most anticipated extensions of the ecosystem. This decentralized lending protocol, announced in December 2024, will complement existing trading features by enabling :

• Borrowing and lending assets directly on the platform
• More sophisticated trading strategies using leverage
• New yield opportunities for HYPE holders

These developments are part of Hyperliquid’s broader vision to create a complete and high-performing decentralized financial ecosystem.

Governance Mechanism Improvements

The evolution toward more decentralized governance constitutes a crucial development axis for Hyperliquid’s future. Planned steps include :

• Strengthening the role of HYPE holders in decision-making
• Implementation of more sophisticated voting systems
• Progressive decentralization of critical protocol functions

This transition to more participatory governance could strengthen community engagement and project legitimacy in the crypto ecosystem, while reducing risks related to residual centralization.

Potential Institutional Adoption

Institutional adoption represents a major opportunity for Hyperliquid’s future growth. Several factors favor this trend :

• Growing interest from investment funds in high-performing DeFi platforms
• Potential partnerships with financial institutions seeking exposure to the DeFi market
• Attraction of professional market makers thanks to low fees and high performance

This institutional adoption could bring not only additional volumes but also increased legitimacy in the broader financial ecosystem.

HYPE : Price Predictions and Growth Factors

Price predictions for the HYPE token are generally optimistic, though variable depending on sources :

• Short-term (2025) : Growth potential up to $55-60 according to some analysts
• Medium-term (2026-2028) : Projections up to $80-100 depending on adoption
• Long-term (2030+) : Very variable estimates, some going up to $150-200 in optimistic scenarios

These predictions depend on numerous factors, notably :

1. Continued adoption of the platform by traders and investors
2. Successful expansion of the ecosystem with Hyperlend and other applications
3. Evolution of the global regulatory framework for DeFi
4. Competition from other DEXs and centralized platforms
5. General sentiment of the crypto market

It’s important to note that these projections involve a significant margin of uncertainty and do not constitute investment advice.

Our Opinion : Is Hyperliquid the Future of Crypto Trading ?

After an in-depth analysis of Hyperliquid, its technology, team, adoption, and prospects, we can formulate a nuanced evaluation of this innovative project that has quickly made its mark on the cryptocurrency ecosystem.

Project Strengths and Weaknesses

Like any ambitious project, Hyperliquid has its advantages but also some disadvantages. Here’s a clear overview of its strengths and limitations to better form an opinion.

Major strengths :

• Revolutionary blockchain architecture: Hyperliquid’s custom Layer-1 blockchain offers exceptional performance that bridges the historical gap between decentralized and centralized solutions.
• Unique community approach: The team’s self-funding and fair token distribution create a rare alignment of interests in the crypto ecosystem.
• Explosive adoption: The rapid domination of the DEX futures market (78.8% market share) demonstrates exceptional product-market fit.
• Distinctive technical innovations: The elimination of gas fees, innovative token standards, and vault system constitute durable competitive advantages.
• High-level team: The combined expertise in traditional trading, crypto market making, and blockchain development enables first-rate technical and commercial execution.

Weaknesses to consider :

• Demonstrated security risks: The March 2025 incident revealed vulnerabilities in the technical infrastructure which, although addressed, raise legitimate questions.
• Dependence on the memecoin market: The concentration on this volatile segment creates vulnerability to evolving market trends.
• Residual centralization: Certain aspects of governance and development remain under centralized control, partially contradicting the fundamental principles of DeFi.
• Significant regulatory risks: Global regulatory uncertainty could limit expansion and long-term adoption.