Hyperliquid leads the DeFi space with a trading volume of $188 billion, yet 86% of traders lose money there. Delve into the reasons behind this gap and discover how to make the most of this rapidly growing platform.
Hyperliquid, the decentralised platform for perpetual futures contracts, is attracting more and more traders. However, behind this growth lies a surprising reality: only 14% of traders manage to make profits. Let’s explore the key figures and trends shaping this thriving platform.
According to Hyperdash data, out of a sample of 1,000 traders, only 135 achieved positive results. The average daily profit and loss (PnL) for all traders amounts to a loss of $5,600.
Despite some traders accumulating gains exceeding $10 million, most Hyperliquid users incur losses, reflecting the high-risk nature of margin trading.
As highlighted by the crypto analyst DeFi Mochi, only 170 traders on Hyperliquid have made profits exceeding $10 million, while 1,589 have earned over a million. However, many of the most profitable traders show a return on investment (ROI) below 200%, suggesting they likely started with a significant initial capital.
Although most traders are not profitable, Hyperliquid continues to establish itself as a major player in decentralized finance (DeFi). The platform holds over 80% market share among perpetual futures platforms, with 499,231 users and a trading volume of $188 billion in the last 30 days, generating $37.61 million in fees.
This hybrid decentralization model has attracted significant investments and gained users’ trust, despite the profitability challenges faced by the majority of traders. Hyperliquid remains the preferred choice for many DeFi industry players, demonstrating its market strength.
To counter profitability challenges, traders must adopt rigorous trading strategies:
The low profitability of traders on Hyperliquid (86% in loss) reflects the inherent risks of leveraged trading in a volatile market, exacerbated by a concentration of profits among well-capitalized traders and speculative behaviours
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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