Ether Dominates on HyperLiquid as Platform Activity Surpasses $500B
HyperLiquid, the on-chain perpetuals trading protocol built on its custom Layer 1 blockchain, is making headlines alongside Bitcoin (BTC), but for a different reason—its users are favoring ether (ETH) over bitcoin in recent trading activity.
The platform has reached an impressive milestone, surpassing $500 billion in cumulative perpetuals trading volume, marking a 15-fold increase year-to-date, according to DefiLlama. Over the past week, HyperLiquid has averaged more than $5 billion in daily trading volume, accounting for 45% of all on-chain perpetuals market activity within the past 24 hours.
Interestingly, ether has taken the spotlight, with its perpetuals recording a cumulative trading volume of $7 billion since Monday. This represents an 18% lead over bitcoin’s $5.94 billion during the same period, as per stats.hyperliquid.xyz.
Ether’s dominance extends to open interest as well. As of now, ether perpetuals account for $857.5 million of the platform’s $3.49 billion total open interest, nearly 25%. Analysts suggest that this increased focus on ether could act as a catalyst for further gains in ETH, which is currently trading at $3,900, reflecting a 70% year-to-date rise, according to CoinDesk data.
HyperLiquid’s success is attributed to its focus on being a purpose-specific protocol rather than a general blockchain.
“HyperLiquid excels by aligning product-market fit with user needs, blending institutional-grade performance with DeFi accessibility, such as no KYC requirements. Generous incentives for active traders help create a compelling ecosystem, setting a potential new benchmark for crypto projects,” noted algorithmic trading firm Wintermute in a statement shared with CoinDesk.
HYPE Token Outpaces AAVE with Rapid Growth
HyperLiquid’s newly launched HYPE token is also making waves in the market. In just two weeks, the token’s value has skyrocketed over 300%, reaching a market cap of $5.69 billion. This places HYPE ahead of long-standing DeFi projects such as Ethereum’s lending protocol Aave and Solana-based decentralized exchanges like Raydium and Jupiter, according to Coingecko.
The token’s bullish trajectory followed a record-setting airdrop on Nov. 29, during which HyperLiquid distributed 31% of HYPE’s nearly 1 billion token supply to users who had accrued trading points. The airdrop, valued at $1.9 billion, exceeded the valuation of Arbitrum’s $1.5 billion airdrop.
HYPE functions as a staking asset for securing HyperLiquid’s HyperBFT consensus mechanism and serves as a gas token for transactions and smart contract execution.
Wintermute commented on the token’s momentum: “Despite the potential for sell pressure from airdrop recipients, sustained demand for HYPE has consistently outstripped supply, demonstrating strong market confidence.”
With both ether and HYPE driving HyperLiquid’s growth, the platform is solidifying its position as a leading player in the on-chain perpetuals market.
