Hyperliquid's Growing Popularity Among the Public and Its Impact on the Structure of the Crypto Market

Hyperliquid: Redefining the Decentralized Derivatives Landscape in 2025

In 2025, Hyperliquid has established itself as a dominant player in the decentralized derivatives sector, commanding an impressive 73% share of the market. This achievement is the result of innovative on-chain solutions and a surge in retail-driven liquidity. The platform has seen its user base skyrocket, with wallet addresses increasing from 291,000 to more than 518,000 within just half a year. July 2025 alone witnessed a staggering $320 billion in trading volume. This rapid ascent is not solely driven by speculation, but also by fundamental changes in how liquidity is sourced and utilized within the crypto space.

Breakthroughs in On-Chain Technology: HIP-3 Growth Mode and Hybrid Liquidity

With the introduction of HIP-3 Growth Mode in late 2025, Hyperliquid has transformed the fee structure of decentralized trading. By reducing taker fees for new markets by over 90%—bringing them down to as little as 0.00144% for top participants—the platform has encouraged the listing of unique and experimental assets, including perpetual contracts for stocks like TSLA and NVDA.

This innovative fee model, paired with a mandatory 30-day lock on fee settings to deter arbitrage, has helped stabilize liquidity and attracted asset deployers who previously depended on centralized exchanges. Hyperliquid’s BorrowLendingProtocol (BLP) further enhances its ecosystem by allowing users to manage liquidity dynamically—enabling direct on-chain lending and borrowing of assets.

The platform’s hybrid approach merges the openness of DeFi with the efficiency of centralized exchanges. Its dual-layer system, where retail brokers vie for order flow and wholesalers handle execution, closely resembles the structure of traditional U.S. equity markets. This setup has created a positive feedback loop, boosting both trading activity and liquidity.

Transforming Market Dynamics: A New Era for Decentralized Trading

Hyperliquid’s rapid growth has upended established market structures. By mid-2025, the platform had secured 70% of the total value locked in on-chain perpetual futures, compelling rivals to adopt similar hybrid models. Some DeFi protocols, by integrating HyperEVM in the fourth quarter of 2025, have leveraged Hyperliquid’s technology to build scalable, high-performance systems, proving the adaptability of its model. This evolution is intensifying competition for retail liquidity, with platforms increasingly focusing on on-chain order books and token-based incentives to attract users.

Institutional players are also taking notice. The proposal of an SEC-approved ETF for the HYPE token by 21Shares highlights the growing acceptance of decentralized derivatives. Additionally, Hyperliquid’s Assistance Fund, which dedicates 97% of trading fees to HYPE token buybacks, has created a self-sustaining cycle: increased liquidity draws more traders, which in turn raises protocol revenue and token value. This stands in stark contrast to the often opaque and siloed liquidity of traditional centralized exchanges.

Shifting Retail Liquidity: Fee Reductions, Token Strategies, and Social Media Influence

Retail engagement on Hyperliquid has been propelled by significant fee reductions and carefully crafted tokenomics. The 90% decrease in taker fees under HIP-3 Growth Mode has made niche markets more accessible, while a $100 million monthly buyback initiative has helped stabilize the HYPE token’s price during periods of volatility. Social media has played a pivotal role, with viral campaigns about fee cuts and staking-to-spot transfers fueling retail enthusiasm and driving HYPE’s price up by 380% in 2025.

Nevertheless, retail-driven liquidity brings its own set of challenges. In November 2025, a $314 million token unlock and a $90 million transfer from staking to spot markets underscored potential liquidity risks. The platform also faced a $4.9 million loss due to manipulative trading involving Popcat (POPCAT), highlighting the vulnerabilities of retail-centric markets. Despite these setbacks, Hyperliquid still managed to capture 40% of blockchain earnings in November, showcasing its resilience.

Looking Ahead: The Future of Decentralized Market Structure

Hyperliquid’s advancements have sparked a fundamental rethink of crypto market architecture. By fusing low-cost, high-speed infrastructure with token-based incentives, the platform has bridged the divide between decentralized and traditional finance. However, ongoing regulatory scrutiny—especially under the EU’s MiCA regulations—and liquidity fluctuations remain significant concerns. For investors, Hyperliquid offers more than just speculative potential; it provides a preview of a future where robust retail liquidity and institutional-grade systems coexist in decentralized trading.