Despite Setbacks, Hyperliquid Still Seen as Top Bet Among Perp DEXes: Analyst

DeFi analyst Patrick Scott suggests that Hyperliquid, despite losing ground to newer rivals, remains the most compelling decentralized exchange (DEX) for perpetual futures investors.

Perpetual futures, often called “perps,” are crypto derivatives that let traders speculate on prices without expiry dates. Decentralized platforms offering them, known as perp DEX es, have grown rapidly as users seek alternatives to centralized exchanges (CEXes) like Binance. 

According to Scott, perp DEXes have expanded from less than 2% of CEX perpetual trading volume in 2022 to over 20% last month, with Hyperliquid playing a central role in this surge.

Market Share Losses Raise Questions

Despite its early lead, Hyperliquid has faced mounting competition. The exchange’s market share of perp DEX volume recently plunged from 45% to just 8%, while Binance-affiliated Aster soared past $270 billion in weekly trades. Emerging platforms such as Lighter and edgeX have also reported triple-digit percentage gains in trading activity, intensifying the competitive landscape.

These shifts have sparked doubts about whether Hyperliquid can maintain its dominance. Yet Scott argues that market share alone doesn’t tell the full story, pointing instead to deeper fundamentals that continue to favor the platform.

Hyperliquid: Strong Fundamentals and Expansion Plans

Scott emphasized that Hyperliquid’s long-term strength lies in metrics beyond raw volume. The exchange maintains robust revenue streams and trades at what he calls “a reasonable multiple” compared with peers. More importantly, it holds around 62% of the perp DEX open interest market — a measure he describes as “stickier” than volume or revenue, since it reflects liquidity and sustained user commitment.

Beyond trading, Hyperliquid is pushing forward with expansion initiatives. Its HyperEVM network now hosts more than 100 protocols and secures $2 billion in total value locked. Meanwhile, its native stablecoin, USDH, is backed by reserves managed through BlackRock and Superstate, a move Scott says could provide credibility and stability.

Another proposal, HIP-3, would allow builders to launch new perp markets by staking substantial amounts of the HYPE token, creating what Scott refers to as a “supply sink” that could support long-term value.

Still, Scott acknowledged risks. His thesis would be undermined if Hyperliquid’s open interest or revenue were to fall significantly, or if USDH failed to gain liquidity in the coming year.