Hyperliquid has captured 70-80% of the decentralized derivatives market with billions in daily trading volume and over $2 billion in TVL, aiming to build a cross-chain liquidity infrastructure.

Hyperliquid Dominates Decentralized Derivatives Market

Hyperliquid now commands 70-80% of the decentralized perpetual futures market. The platform's dominance signifies a major shift in the DeFi landscape, positioning it as a leading platform for on-chain derivatives. Daily trading volumes reach billions of dollars, with a TVL exceeding $2 billion.

Market Share and Revenue Growth

In August, Hyperliquid generated over $100 million in revenue, translating to an annualized run rate of approximately $1.4 billion, according to crypto analytics firm Artemis. This substantial revenue highlights the platform's growing influence in the decentralized finance sector. The platform is built on its own blockchain and has become a primary venue for trading perpetual futures.

Cross-Chain Liquidity Infrastructure

Hyperliquid aims to establish a cross-chain liquidity infrastructure to facilitate seamless asset transfers and leveraged trading across multiple blockchains. Through a partnership with Avail Nexus, Hyperliquid projects can now leverage native liquidity on ten prominent chains—including Ethereum, Avalanche, Arbitrum, and Polygon—without requiring redeployments or bridges. This integration streamlines the user experience and bolsters liquidity flows, enhancing interoperability across diverse blockchain environments.

DeFi Integration and User Experience

The integration of Avail Nexus's SDK allows users to deposit assets from their home chain without navigating bridges, simplifying the onboarding process. Projects like Kinetiq, HyperBeat, and Hyperlend are already utilizing this upgrade to enjoy smoother onboarding and wider liquidity reach.

This enables the integration of Nexus SDK without any significant effort. As a result of this, the consumers are capable of depositing assets from the home chain while not requiring any navigating bridges.

Regulatory Compliance and Accessibility

Hyperliquid is accessible in over 180 countries and does not require KYC for trading, but it restricts access in the United States, Ontario, and other sanctioned jurisdictions. While it operates as a decentralized exchange without specific regulatory licenses, it adheres to international laws and regulations.

Competitive Landscape

Hyperliquid's surge contrasts with other parts of the decentralized exchange ecosystem, where Solana-based DEXs have seen volumes and engagement decrease. The platform's steady growth trajectory, with consistent user adoption and liquidity, suggests its appeal extends beyond short-term hype cycles. Competitors like Lighter are emerging with features like advanced order verification and unified yield–margining; however, Hyperliquid currently holds a significant scale advantage.

Security Considerations

Recent scrutiny has highlighted potential vulnerabilities related to Hyperliquid's reliance on a limited number of validators. An incident involving suspicious trading activity linked to North Korean hacking groups raised concerns about potential breaches and the platform's security model. The platform’s reliance on a small number of validators exacerbated these vulnerabilities. Hyperliquid's security model uses a two-thirds quorum for validating transactions, meaning that if three out of four validators were compromised, attackers could execute unauthorized withdrawals, including accessing $2.3 billion held on the platform's cross-chain bridge.