- Hyperliquid’s Hypercore product handled 80% of all on-chain perpetual futures trading volume in May.
- HYPE, the platform’s native token, rose 80% in the last month, hitting $37.72.
- A major airdrop in late 2023 contributed to increased usage of the platform.
- Overall, Hyperliquid saw $250 billion in perpetual futures trading volume in May, outpacing other decentralized exchanges.
- Some users have raised concerns over platform decisions and validator numbers, despite growth and strong community engagement.
Hyperliquid reached a record-high share of on-chain perpetual futures trading in May, according to a new report from Grayscale. The decentralized exchange’s Hypercore product generated 80% of all on-chain perpetual futures volume, while its token HYPE surged 80% over the month.
HYPE traded at $37.72 at the end of May, with a 14% daily increase as reported by CoinGecko, and briefly hit an all-time high of $39.68 earlier in the month. Grayscale analysts stated, “Hyperliquid has seen consistently high organic usage and robust liquidity and should increasingly compete with centralized derivative exchanges like Binance and Bybit.” The platform’s Hypercore product alone recorded $17 billion in perpetual futures trading volume for May.
As a whole, Hyperliquid processed $250 billion in perpetual futures trading volume last month, as shown by DefiLlama data. The exchange’s cumulative volume since its launch late last year now stands at $1.6 trillion. Its nearest competitor, Solana-based Jupiter Perpetual Exchange, reported $20.5 billion during the same month.
Perpetual futures are contracts that allow traders to speculate on the price of assets without an expiry date, unlike traditional futures. These contracts often include high leverage, enabling traders to borrow funds for larger bets but with higher risk. Hyperliquid operates as a decentralized exchange using smart contracts to provide transparency.
The platform has attracted attention due to high-profile trades such as those by pseudonymous trader James Wynn, who was recently liquidated on a $1 billion Bitcoin bet, resulting in $100 million in losses. This event, and Wynn’s subsequent calls for donations on X (formerly Twitter), have brought further attention to Hyperliquid.
Last November, the platform distributed 310 million HYPE tokens to early users in an airdrop. While these were valued at $1.6 billion at the time, current prices would place their worth at approximately $11.7 billion. According to Messari Research Analyst Matthew Nay, “The wealth effect created this community that is super tight-knit, and it’s built around good tech.”
Despite growth, some participants have criticized Hyperliquid for decisions like the delisting of certain meme coins and for its low number of validators, which some say goes against the principles of decentralized finance. However, the platform has maintained sustained engagement compared to other projects that see activity drop after airdrops.
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