Hyperliquid Retains Edge in Perp DEX Market Despite Rising Competition
Decentralized perpetuals exchanges (perp DEXes) are surging in popularity, but Hyperliquid remains the strongest player despite losing volume share to new rivals, according to DeFi analyst Patrick Scott.
Growing DEX Share
Perp DEXes — platforms that host perpetual futures contracts without expiry — have expanded rapidly as traders shift activity away from centralized exchanges (CEXes). Their share of global perpetuals trading has grown from less than 2% in 2022 to more than 20% last month.
Hyperliquid, issuer of the HYPE token, was central to that growth. However, its market share recently slid from 45% to 8% as Binance-backed Aster exploded to more than $270 billion in weekly trades. New entrants like Lighter and edgeX also posted outsized gains.
Fundamentals Still Favor Hyperliquid
Despite the competitive shake-up, Scott argues Hyperliquid remains the most attractive DEX investment. He points to resilient revenue, sustainable trading multiples, and dominant liquidity, noting that Hyperliquid still commands about 62% of perp DEX open interest — a measure he calls “much stickier than volume.”
The platform is also expanding beyond trading. Its HyperEVM network hosts over 100 protocols with $2 billion in total value locked, while its stablecoin, USDH, is backed by reserves with BlackRock and Superstate. A proposal known as HIP-3 would further increase token utility by requiring HYPE staking to launch new markets.
Risks Ahead
Scott cautioned that Hyperliquid’s advantage depends on maintaining open interest and growing liquidity for USDH. A material decline in either could weaken its positioning. Still, he maintains Hyperliquid is better placed than competitors relying on heavy incentive programs to attract users.
