Hyperliquid Dominates DEXes With 80% Trading Volume

Hyperliquid has suddenly made a name for itself amongst its counterparts, gaining a significant percentage of the general derivatives market. It turns out that the Decentralized Exchange (DEX) controls almost 80% of the entire decentralized perpetual futures market. Such a massive growth is a reflection of the rapidly growing dominance of Hyperliquid over its rival.

Hyperliquid Outperforms dYdX With 11 Team Members 

In just one year, Hyperliquid has successfully risen to become the leading decentralized perpetual futures platform. 

It handles as much as  $30 billion in daily trades, which represents almost 80% of the perp futures market’s trading volume, according to Redstone. This is a feat that not many DEXes have been able to achieve, even though it has only 11 people on the team.

For instance, dYdX recorded 30% trading volume across DEXes in early 2024. Unfortunately, the share fell to around 7% by the end of that year, coinciding with the period when Hyperliquid’s share stabilized above 65%, per CoinGecko’s data.

Hyperliquid’s Features Stands Out Among DEXes

Hyperliquid stood out from the beginning due to its decision to start avoiding venture capital. 

Combined with timing, this decision gave the DEX an opening it exploited faster than most of its counterparts. Features like one-click trading, zero gas fees, and sub-second order finalization all make Hyperliquid feel closer to a centralized exchange than most DEXs. 

This has been instrumental in attracting both retail and professional traders to the platform. Even with the public criticism from high-stake crypto trader James Wynn, Hyperliquid has excelled. 

While all these feats are worthy of applause, its trading volume concentration raises concerns. The concerned parties are worried about how sustainable such growth is as well as the potential risks if trading volumes decline. 

Hyperliquid Liquidations Triggers Loss For Ethereum Trader

A few days ago, Hyperliquid faced massive liquidations, erasing millions of fortunes built up over months of trading. 

Remarkably, a particular trader turned an initial $125,000 investment into more than $43 million at its peak. This trader ended up with almost $7 million in profits. With a market pullback, the trader’s long position on Ethereum (ETH) was liquidated, as reported by blockchain analytics platform Lookonchain.

Unfortunately, the trader recorded a $6.22 million loss, with only about $771,000 left. As a result of the losses, nearly four months of gains were erased in two days.