Why Everyone's Talking About Hyperliquid?

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Hyperliquid has rapidly emerged as one of the most compelling stories in decentralized finance (DeFi) in 2025. With its total value locked (TVL) soaring to $1.8 billion** and its native token, **$HYPE, reaching an all-time high of $45, the platform is capturing attention across the crypto ecosystem. But this isn’t just speculative momentum — it’s backed by real, measurable growth in user activity, trading volume, and on-chain profitability.

What sets Hyperliquid apart isn’t just its performance — it’s the self-reinforcing economic model that rewards token holders while fueling platform expansion. From record-breaking open interest to aggressive token buybacks and burns, every metric points toward sustainable momentum.

Let’s explore why Hyperliquid is dominating DeFi conversations and what makes it a standout in the competitive perpetuals DEX landscape.

Hyperliquid’s Explosive Growth Metrics

Hyperliquid isn’t just another decentralized exchange (DEX) — it’s a full-service perpetual futures DEX with leverage, built on its own Layer 1 blockchain. This architecture enables it to compete directly with centralized giants like Binance, Bybit, and OKX in terms of speed, depth, and trading volume.

And the numbers don’t lie.

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1 in Gross Profit for May 2025

In a stunning development, Hyperliquid ranked #1 among all blockchains in gross profit for May 2025 — outpacing established leaders like Ethereum, Solana, TRON, and Base. This profit stems directly from trading fees generated on the platform, proving that Hyperliquid isn’t just attracting users — it’s monetizing effectively.

Unlike TRON, which earns primarily from USDT transfer gas fees, Hyperliquid’s revenue is driven by real trading activity. This distinction highlights a healthier, more sustainable economic model rooted in utility rather than speculation.

Record Open Interest: Over $9 Billion

Open interest (OI) — the total value of outstanding perpetual contracts — hit a new peak of **over $9 billion** recently. This places Hyperliquid ahead of Binance’s USDT-margined perpetuals, which sit at around $8.2 billion.

Such high OI indicates:

It also means the platform can absorb large trades without slippage — a critical factor for whales and professional traders.

"Hyperliquid topped all major chains in gross profit for May 2025, surpassing TRON, Ethereum, Base, and Solana."
— Cointelegraph, June 5, 2025

User Activity: Parabolic Growth in Traders and Trades

Since January 2025, Hyperliquid has seen a 110% increase in cumulative trades compared to all prior history. This isn’t just a few big players — the surge includes a massive influx of retail traders.

While whale activity grabs headlines (like the well-publicized liquidation of James Wynn), the real story is the democratization of access. The platform’s low latency, intuitive interface, and competitive fee structure make it attractive to both novice and expert traders.

Key indicators of broad adoption:

This kind of organic, bottom-up growth is rare in DeFi — and far more sustainable than marketing-driven spikes.

Stablecoin Momentum: USDC Is Flowing In

For any perpetual DEX, stablecoin dominance is a leading indicator of trading activity. On Hyperliquid, USDC holds 96% dominance as the primary quote asset across trading pairs.

And the trend is accelerating:

“There’s currently $3.825B in stablecoins on the Hyperliquid chain — I believe it won’t be long before Hyperliquid takes a Top 3 spot.”
— Hyperliquid Hub, June 17, 2025

This capital isn’t idle — it’s actively deployed in leveraged trading. The movement of USDC from chains like Arbitrum and Polygon signals a shift in trader preference toward faster settlement and better incentives.

The $HYPE Token: A Profit-Sharing Powerhouse

At the heart of Hyperliquid’s success is its native token, $HYPE — a deflationary asset designed to align platform success with holder value.

After peaking at $45 (now consolidating around $40), $HYPE continues to gain momentum due to two powerful mechanisms:

  1. 97% of platform profits distributed to stakers
  2. Aggressive buyback and burn program

Profit Distribution: Unprecedented Alignment

Most DeFi protocols share little or no revenue with token holders. Hyperliquid flips this model: 97% of net revenue goes directly to $HYPE stakers. This creates a powerful incentive for long-term holding and participation.

It’s not just passive income — it’s direct exposure to the platform’s profitability.

Buybacks & Burns: Supply Contraction = Price Support

Every trade on Hyperliquid triggers a portion of fees being used to buy back and burn $HYPE. Recent data shows:

This deflationary pressure creates natural scarcity — especially as demand grows.

“OI ↑ → Volume ↑ → Revenue ↑ → Buybacks ↑ → Price ↑”
— Holosas, June 16, 2025

This flywheel effect is now fully operational: more traders generate more fees, which fund buybacks, driving up token value, attracting more users — and the cycle repeats.

FAQ: Your Questions About Hyperliquid Answered

Q: What makes Hyperliquid different from other DEXs?
A: Unlike most DEXs that run on existing blockchains, Hyperliquid operates on its own high-speed Layer 1 optimized for perpetual trading. It combines low latency with a profit-sharing model that returns 97% of revenue to token holders — a rarity in DeFi.

Q: How does the $HYPE token gain value?
A: Value accrual happens through two main channels: (1) regular buybacks funded by trading fees, followed by token burns that reduce supply; and (2) direct profit distributions to stakers, making $HYPE a yield-generating asset tied to platform performance.

Q: Is Hyperliquid safe for retail traders?
A: Yes. While leveraged trading carries inherent risk, Hyperliquid offers strong liquidity, transparent on-chain data via its explorer (stats.hyperliquid.xyz), and a growing ecosystem of tools and analytics to help manage risk effectively.

Q: Where can I stake $HYPE?
A: Staking is available directly through the official Hyperliquid interface. Users connect their wallets and delegate tokens to earn a share of platform revenues denominated in USDC.

Q: Could $HYPE reach $200?
A: While price predictions are speculative, the current flywheel — rising volume, increasing buybacks, limited supply due to burns — suggests strong upward potential, especially during a bullish altcoin season.

Why Institutional Attention Is Growing

Eyenovia, a publicly traded company, recently made headlines by adding $HYPE to its treasury — mirroring corporate Bitcoin adoption strategies. This marks a significant milestone: one of the first traditional companies embracing a DeFi-native token as a strategic reserve asset.

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Such moves signal growing legitimacy and could inspire other firms to follow suit — further boosting demand for $HYPE.

Final Thoughts: A New Model for Sustainable DeFi Growth

Hyperliquid represents a paradigm shift in decentralized exchange design. Rather than relying solely on token emissions or speculative hype, it has built a self-sustaining economy where:

With stablecoin inflows accelerating, open interest breaking records, and profit distribution creating unmatched alignment, Hyperliquid is positioned not just for short-term success — but for long-term dominance.

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Disclaimer: The information provided is for educational and informational purposes only. It does not constitute financial advice. Cryptocurrencies are high-risk investments; conduct your own research before making any decisions.