Hyperliquid is a fully on‑chain, Layer‑1 perpetual trading platform built for speed, deep liquidity, and transparency. Instead of relying on traditional AMMs, it runs an on‑chain order book with near-instant order matching and zero gas costs for traders. It combines the execution speed of top centralized exchanges (CEXs) with DeFi’s decentralization ethos.
Launched in early 2023, Hyperliquid has grown organically, without VC funding or influencer hype—it built a loyal user base through technical content, generous rewards, and relentless execution.
User & Growth Metrics: Mind‑Blowing Traction
- By July 2025, over 185,000 unique users participated in the ecosystem, depositing more than $4.8 billion.
- Daily trading volumes soared past $2 billion, with cumulative volume reaching hundreds of billions in just months.
- Total Value Locked (TVL) on the chain surpassed $1.2 billion, including nearly $950 million in USDC reserves.
These figures show real traction—real people trading, protocols growing, and revenue flowing to users.
Behind the Scenes: Protocols Like Hyperswap, Felix & More
Hyperliquid isn’t just a DEX; it’s a full-stack DeFi ecosystem via its smart-contract layer HyperEVM. By mid‑2025, more than 35 live protocols had deployed on it, including lending, staking, tokenization, and DeFi credit apps
Key Sub-Protocols:
- Hyperswap (also known as KittenSwap): AMM DEXs offering spot swaps with integrated order-book routing via the upcoming Core order‑book layer.
- Felix Protocol: Collateralized debt positions and vanilla lending using feUSD and other stablecoins—over $340 million TVL, and $75 million in feUSD alone.
- HypurrFi: Over‑collateralized lending and stablecoin USDXL, plus yield vaults—one of the largest credit apps on the chain.
These components add real depth. The HLP vault (Hyperliquidity Provider) powers liquidity, actively market‑making trades and returning fees to depositors. It helped drive yield and volume growth.
Why CEXs Are Nervously Watching
Because Hyperliquid combines:
- CEX-like performance with up to 100,000 orders/sec, sub‑second finality, low latency.
- Zero KYC friction, enabling anyone to trade via wallet connection.
- Maker/taker economics that funnel nearly all fee revenue to users and liquidity providers—not insiders.
As a result, it has captured a large share of on‑chain perpetual trading—up to 70%—while centralized platforms face increasing competition.
With real token buybacks, no VC dilution, and a strong community, Hyperliquid runs the kind of economic loop CEXs traditionally dominate. That worry comes from watching traders and volume migrate away.
What’s Next: The Next Five Years
Looking ahead, here’s why Hyperliquid’s growth may keep accelerating:
- Ecosystem Expansion
Expect dozens more projects across lending, staking, DeFi credit, prediction markets, and GameFi. Ecosystem builders already number in the hundreds.
- Native Asset Integration
Unit enables direct use of BTC, ETH, SOL as collateral, trading instruments, and treasury assets—drawing more capital into the protocol-native economy.
- Institutional & Regulatory Dialogue
The team is already engaging with regulators like the CFTC, advocating for DeFi‑style perpetuals and 24/7 markets. That builds trust and paves the way toward institutional bridges.
- Revenue-Powered Token Growth
As trading volume and TVL climb, more fees flow to depositors and HYPE holders via buybacks. That strengthening loop drives demand for the token.
- From Zero to Hero: Vision of Web3 Finance
With its unified architecture—HyperCore for trading, HyperEVM for contracts, and HyperUnit for tokenization—Hyperliquid could evolve into the financial operating layer of Web3, where spot, derivatives, and tokenized assets converge seamlessly.
Hyperliquid has grown from a quiet technical startup into a fast‑growing DeFi powerhouse in blockchain. Its on‑chain order book, HLP liquidity engine, and user-centric economics have driven remarkable adoption.
CEXs are watching because Hyperliquid erodes their value proposition—and it’s only getting started. Over the next five years, expect deep ecosystem growth, further asset integration, regulatory engagement, and revenue engines powering token appreciation. For anyone curious about the future of decentralized trading, Hyperliquid is the platform to watch.
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