Hyperliquid has firmly established itself as a dominant force in the decentralized finance (DeFi) landscape. Over the past month alone, the ecosystem has surged by 80%, now capturing 70% of all DeFi perpetual contract trading volume — amounting to a staggering $1.5 trillion in total traded value. With $1.4 billion in total value locked (TVL), Hyperliquid is not just growing — it’s redefining what a high-performance blockchain can achieve.
The launch of HyperEVM, increased media attention, and rising token performance have collectively drawn renewed focus to this innovative platform. Unlike many projects driven by hype or venture capital funding, Hyperliquid’s rise stems from genuine utility, technical excellence, and organic community momentum.
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Understanding the Hyperliquid Architecture
To fully appreciate Hyperliquid’s success, it's essential to understand its dual-layer design:
- HyperCore: The trading engine — a native decentralized perpetual exchange featuring an order-book model, real-time liquidity, and ultra-low latency execution.
- HyperEVM: The smart contract layer launched in February 2025, enabling developers to build DeFi applications that tap directly into HyperCore’s deep liquidity and real-time market data.
Think of HyperCore as the powerhouse, handling trades, pricing, and risk management, while HyperEVM acts as the application layer, where innovation happens. Together, they form a unified blockchain infrastructure optimized for speed, scalability, and developer flexibility.
This architecture enables two types of deployments:
- Standard EVM deployment: For apps that operate like on any other EVM-compatible chain.
- Hyperliquid-native deployment: Allows contracts to read (and eventually write) directly from HyperCore — unlocking access to live positions, balances, and real-time price feeds.
This integration creates a seamless bridge between centralized-exchange-level performance and decentralized autonomy — a rare combination in today’s crypto ecosystem.
The Rise of Native DeFi Applications
Developer activity on HyperEVM has exploded, fueling a new wave of innovation built on Hyperliquid’s robust foundation.
One standout project is Felix Protocol, a comprehensive lending suite offering:
- CDP Market: Users can mint feUSD, a stablecoin backed by HYPE tokens as collateral.
- P2P Lending Pools: A peer-to-peer borrowing and lending system featuring HUSD, a fiat-backed stablecoin developed in collaboration with m0 Foundation.
Crucially, Felix leverages idle cross-chain USDC — generating approximately $107.5 million annually in interest — to buy back HYPE tokens and distribute them as yield to users. This creates a self-reinforcing economic loop that rewards participation and strengthens the ecosystem.
Other notable projects include:
- @hyperunit: Enables cross-chain asset tokenization. Its flagship asset, uBTC, is gaining traction across both HyperCore and HyperEVM for leveraged trading and yield strategies.
- @pvp_dot_trade: A Telegram-based multiplayer trading bot that taps into HyperCore’s liquidity, wrapped in a gamified interface inspired by classic RPGs like RuneScape.
- @liminalmoney: A yield protocol running market-neutral strategies. By depositing USDC, users earn returns from funding fees — currently offering around 16% annualized yield. Access is currently invite-only, adding exclusivity and demand.
These applications demonstrate how Hyperliquid isn’t just about trading — it's evolving into a full-fledged financial ecosystem.
HyperCore: Still Dominating Perpetuals
While the ecosystem expands, HyperCore remains the engine driving growth. It continues to set new records:
- Over $10 million in open interest
- Average daily fees exceeding $5.6 million
- More than $3.5 billion in cross-chain USDC bridged
Despite having no external funding or VC backing, Hyperliquid competes head-on with centralized exchanges — often outpacing them in listing new markets and execution speed. This performance isn’t accidental; it’s engineered.
Every fee generated flows back into the ecosystem:
- $240 million in cumulative fees collected to date
- Approximately $40 million per month in recurring revenue
- Over 23 million HYPE tokens already repurchased through daily buybacks
At current buyback rates, the protocol’s treasury could theoretically acquire the entire circulating supply of HYPE within seven years — a powerful deflationary mechanism that reinforces long-term value accrual.
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Community Momentum and Grassroots Adoption
Growth isn’t limited to metrics — the community is thriving organically.
From Twitter bios featuring “Hyperliquid” signatures to the rise of NFT collections like @HypioHL, grassroots movements such as HypurrCollective and HyperActive Capital are spreading globally. These groups aren’t just fans; they’re contributors, builders, and validators shaping the platform’s future.
Upcoming governance proposal HIP-3 will mark another milestone: it introduces permissionless market creation, allowing anyone to stake HYPE and launch new perpetual markets — including tokenized stocks, commodities, or even prediction assets.
This move accelerates Hyperliquid’s journey toward full decentralization and aligns with its vision: "All Finance, Onchain."
Why This Growth Matters
In an industry saturated with short-lived incentives and VC-driven launches, Hyperliquid stands out because its growth is driven by product quality, not subsidies.
Many users initially joined to farm HYPE rewards during the airdrop phase. But sustained usage post-airdrop — coupled with record-breaking volumes and expanding TVL — proves that people stay because the platform works.
Key takeaways:
- High real-world usage, not artificial farming
- Consistent revenue generation from trading fees
- Strong community ownership and engagement
- A clear path to full decentralization
This is the blueprint for sustainable DeFi success in 2025 and beyond.
Frequently Asked Questions (FAQ)
Q: What makes Hyperliquid different from other DeFi platforms?
A: Hyperliquid combines an order-book-based perpetual DEX (HyperCore) with a full EVM-compatible smart contract layer (HyperEVM). This allows for high-speed trading and rich DeFi composability — a rare blend in the current market.
Q: How does HYPE generate value for holders?
A: HYPE benefits from daily buybacks funded by protocol fees. Additionally, future governance rights and staking utilities (e.g., via HIP-3) increase its utility and scarcity over time.
Q: Is Hyperliquid centralized or decentralized?
A: While initially bootstrapped by a core team, Hyperliquid is rapidly moving toward full decentralization. Features like HIP-3 and community-led initiatives are key steps in this transition.
Q: Can developers build on Hyperliquid easily?
A: Yes. Developers can deploy standard EVM apps or go deeper with native integrations that pull live trading data from HyperCore — ideal for building advanced DeFi tools.
Q: What risks should users consider?
A: As with all DeFi platforms, smart contract risk, market volatility, and regulatory uncertainty exist. Always conduct due diligence before participating.
Q: Where can I track Hyperliquid’s performance metrics?
A: Key data such as TVL, trading volume, fees, and HYPE buybacks are publicly available through on-chain analytics platforms and community dashboards.
The Road Ahead
The story of Hyperliquid is still being written — but one thing is clear: this is more than a flash-in-the-pan trend. With a battle-tested trading engine, a booming app ecosystem, strong revenue fundamentals, and an energized community ready to govern its future, Hyperliquid is positioned to become a cornerstone of next-generation finance.
As HIP-3 approaches and developer innovation accelerates, now is the time to pay attention.