Hyperliquid News Today: Hyperliquid Market Share Plummets 75% Amid B2B Shift, Intensified Competition

Hyperliquid, a major player in the decentralized derivatives space, has seen a 21.97% decline in the number of active smart contract transaction addresses on its platform compared to early November. This drop has raised concerns about the platform's recent trajectory, as it coincides with heightened competition and shifting market dynamics. Analysts and industry observers are now scrutinizing Hyperliquid's strategic direction and ability to retain its market relevance. The platform's move toward a B2B infrastructure model has sparked debates about its long-term viability in a rapidly evolving sector.

Recent developments show that Hyperliquid is repositioning itself around HIP-3 and Builder Codes to regain momentum. The platform's market share has dropped from a high of 80% in May 2025 to nearly 20% by early December. This decline has been attributed to the platform's strategic shift from B2C to B2B operations, which has ceded some product deployment control to third-party developers. Meanwhile, competitors like Lighter have capitalized on this by accelerating product development and maintaining vertical integration.

The strategic shift to B2B has not yielded immediate results, as the infrastructure is still in its early stages and adoption has been slower than anticipated. While Hyperliquid's approach positions it as a foundational infrastructure provider, it has struggled to maintain liquidity and user engagement in the short term according to market analysis. Competitors such as Lighter have leveraged their vertical integration and active incentive programs to attract liquidity, gaining a competitive edge over Hyperliquid according to recent reports. This shift has been critical in shaping the current market dynamics, as incentives continue to play a significant role in driving trading volume in decentralized finance.

How Markets Reacted

Hyperliquid's recent decline in active smart contract addresses mirrors broader market concerns about its ability to maintain dominance in the decentralized derivatives space. The drop in activity aligns with a decline in DeFi TVL, which has fallen to $1.63 billion from $2.42 billion on October 30. This trend has been interpreted as a loss of investor confidence in the token and ecosystem, leading to increased selling pressure as more funds leave staking contracts according to market analysis. Meanwhile, futures Open Interest (OI) remains stable at $1.48 billion, though it is significantly below its peak of $2.59 billion in September according to market data.

The broader crypto market has also seen a mixed response. While some analysts remain optimistic about Hyperliquid's long-term potential, particularly through HIP-3 and Builder Codes, others have highlighted the risks posed by declining TVL and the intense competitive landscape. The platform's technical indicators show some signs of a potential recovery, with the token trading above its short-term support level of $27.50 and an RSI of 37 indicating easing bearish momentum according to technical analysis. However, these signals do not yet confirm a sustained reversal in the platform's fortunes.

What Analysts Are Watching

Analysts are closely monitoring Hyperliquid's strategic repositioning around HIP-3 and Builder Codes to gauge whether it can regain its footing in the market. These tools are designed to enable external developers to build and deploy trading products on the platform, positioning Hyperliquid as a core infrastructure layer for decentralized finance. The early signs suggest a positive trajectory, with experimental markets such as pre-IPO exposure and niche speculative assets beginning to emerge according to market reports. If these markets gain traction, they could capture a significant portion of Hyperliquid's trading volume by 2026.

Despite these developments, challenges remain. The platform faces stiff competition from fully integrated rivals that continue to innovate and execute at a rapid pace. Additionally, Hyperliquid has yet to launch a major incentive program to attract liquidity, while other platforms, such as Lighter, are still in the early stages of their incentive seasons. This dynamic could further pressure Hyperliquid's market share in the near term according to industry analysis.

Risks to the Outlook

The outlook for Hyperliquid's recovery is not without risks. The platform's declining TVL and active user base indicate a waning interest among both retail and institutional investors. This trend is exacerbated by the lack of a robust incentive program, which has historically played a critical role in retaining liquidity in the DeFi space according to market research. Additionally, the broader macroeconomic environment remains uncertain, with investors closely watching the Fed's upcoming policy decisions and their potential impact on risk assets.

Hyperliquid's strategic shift to a B2B model, while visionary, is still in the early stages of adoption. If external developers fail to build out the ecosystem quickly enough, the platform could struggle to attract the liquidity and user base needed for long-term success. Furthermore, regulatory uncertainties in the crypto space may complicate the platform's ability to scale and maintain its competitive edge.