Hyperliquid Dominates Derivatives Trading Amid Meme Coin Volatility

• Hyperliquid processed $2.95 trillion in trading volume during 2025 according to reports.
• The platform captured 47.6% of open interest market share among decentralized derivatives exchanges as reported.
• Annual revenue estimates ranged between $844 million and $908 million amid reporting variations based on data.
• A PEPE long position yielded 734% weekly returns on Hyperliquid despite sector volatility according to analysis.

Hyperliquid strengthened its position as a decentralized derivatives leader in 2025. The platform added 609,700 new users while processing $2.95 trillion in trading volume across 198.9 billion transactions. Revenue figures varied by source between $844 million and $908 million last year, reflecting differences in accounting methodologies. This growth occurred as perpetual decentralized exchanges collectively captured 40% of crypto derivatives volume according to market data.

How Did Hyperliquid Perform in the 2025 Derivatives Market?

Hyperliquid dominated on-chain derivatives with $4.15 billion in TVL and 47.6% open interest market share by year-end. Its HLP Vault jumped from $80 million to $120 million in value during October's market crash. The platform faced mounting competition from rivals Aster and Lighter, which claimed 15.9% and 10.3% open interest respectively. Regulatory frameworks like MiCA and the GENIUS Act enabled institutional participation in perpetual trading.

What Risks Emerged From Hyperliquid's Leveraged Meme Coin Trading?

Leveraged meme coin positions exposed traders to extreme volatility and liquidation risks. TRUMP tokens plunged 80% within months while a single flash crash liquidated $19 billion in positions. Whales controlling over 70% of token supply amplified price shocks and liquidity risks. Despite these dangers, a PEPE long generated 734% returns in one week amid broader meme coin weakness. Open interest climbed 10% to $7.77 billion by early January.

Will Perp DEX Competition Intensify in 2026?

Perpetual DEXs face systemic challenges including liquidity fragmentation and oracle vulnerabilities according to analysis. Nearly 40% of platforms lacked adequate audits during 2025's market stress. Hyperliquid maintained zero bad debts during October's $10.3 billion liquidation event, showcasing operational resilience. The derivatives sector remains sensitive to macroeconomic conditions and regulatory developments. Institutional-grade infrastructure will likely dictate which platforms capture value as crypto evolves beyond speculation according to market experts.