Hyperliquid's Dominance in the Perp DEX Market and the Case for HYPE Token Exposure

The decentralized perpetual exchange (perp DEX) sector has entered a new era of competition, with Hyperliquid emerging as a dominant force despite aggressive challenges from rivals like Aster and dYdX. As of December 2025, Hyperliquid commands 38% of the perp DEX market share, a figure that, while down from its peak of 80% in August, still underscores its entrenched position in a rapidly evolving landscape. This article examines Hyperliquid's market capture, user growth, institutional token accumulation, and strategic initiatives to build a compelling case for immediate HYPE token exposure.

Market Capture and Competitive Landscape

Hyperliquid's dominance is rooted in its ability to balance decentralization with execution speed and user experience. In September 2025, the platform recorded $200 billion in monthly trading volume, dwarfing Aster's $20 billion. However, Aster's aggressive growth-marked by a 1,650% token surge on launch day and a single-day volume spike of $36 billion-highlighted the competitive intensity. Despite these challenges, Hyperliquid's cumulative perpetual trading volume surpassed $2.765 trillion, with daily volumes averaging $15.6 billion.

The broader perp DEX sector is shifting toward execution speed and user-centric features over strict decentralization. Hyperliquid's HyperCore infrastructure, capable of processing 10,000 transactions per second, has been a key differentiator. Meanwhile, dYdX, a long-standing player, reported 30-day trading volumes exceeding $16 billion in December 2025, with daily volumes between $600 million and $800 million. Its expansion into Solana spot trading and U.S. market access further complicates the competitive landscape.

User Growth and Revenue Expansion

Hyperliquid's user base has grown exponentially, from 300,000 in 2024 to 1.4 million by December 2025. This growth is driven by innovations like HyperEVM, which allows developers to build composable applications on Hyperliquid's trading layer. Daily trading volumes surged to $32 billion during peak sessions, while protocol revenue jumped from $3.5 million per day in 2024 to $20 million in 2025. These metrics reflect a robust ecosystem where user growth and revenue are inextricably linked.

The platform's fee redistribution model, which returns revenue to the community, has further solidified its appeal. With daily volumes consistently exceeding $15 billion, Hyperliquid's network effects are self-reinforcing, creating a flywheel of liquidity and user retention.

Institutional Accumulation and Strategic Capital Moves

Institutional demand for HYPE tokens has surged, driven by Hyperliquid's deflationary mechanics and strategic partnerships. In November 2024–December 2025, the Assistance Fund spent $644.6 million to buy back 38 million HYPE tokens. These buybacks, combined with a $1 billion token burn in December 2025 (removing 37 million tokens, or 14–16% of the circulating supply), have created a strong scarcity narrative.

Hyperliquid's institutional partnerships have also deepened. The formation of Hyperliquid Strategies Inc (trading as PURR on Nasdaq) in 2025 marked a pivotal moment, merging with Sonnet BioTherapeutics to create a vehicle holding 16.89 million HYPE tokens and $300 million in cash. PURR's $30 million stock repurchase program further signals confidence in HYPE's long-term value. Collaborations with regulated entities like Anchorage Digital and Circle's CCTP V2 have also streamlined institutional onboarding.

December 2025 Developments and Immediate Catalysts

December 2025 brought critical updates that reinforce HYPE's investment case. A $1 billion token burn, approved by Hyperliquid validators, permanently removed 37 million tokens, enhancing scarcity. Despite this, HYPE's price remained stagnant at $24, a 59% decline from its September 2025 peak of $59.39. This dislocation presents an opportunity, as institutional activity suggests continued demand, including whale deposits of $5 million USDC and leveraged long positions.

Hyperliquid also executed a planned token unlock of 9.92 million HYPE tokens ($256 million) in December 2025, part of a broader strategy to manage liquidity while minimizing market impact. These unlocks, though routine, are transparent and designed to avoid abrupt sell pressure.

The Investment Thesis

Hyperliquid's dominance in the perp DEX market is underpinned by three pillars:
1. Network Effects: A user base of 1.4 million and $32 billion in peak daily volumes create a self-sustaining liquidity pool.
2. Institutional Adoption: Strategic partnerships and the PURR listing provide U.S. and institutional investors with direct exposure to HYPE.
3. Deflationary Mechanics: Token burns and buybacks have reduced circulating supply by 14–16%, while revenue growth ensures a sustainable value proposition.

While risks like token unlocks and competition from Aster persist, Hyperliquid's technological edge, institutional backing, and deflationary design position HYPE as a compelling long-term investment. The platform's ability to adapt-whether through HIP-3 upgrades or Nasdaq listings-demonstrates a forward-looking strategy that aligns with the evolving DeFi landscape.

For investors seeking exposure to the next phase of decentralized trading, Hyperliquid offers a rare combination of market leadership, institutional credibility, and tokenomics that prioritize scarcity and growth.