Hyperliquid Overtakes Ethereum in Seven-Day Revenue

Hyperliquid, a layer-1 blockchain network, has recently flipped Ethereum in seven-day revenues, according to data from DefiLlama. This significant development reflects Hyperliquid's rapid ascent as a venue for trading perpetual futures, or "perps," and Ethereum's challenges in competing against upstart blockchains with faster transaction settlements and lower fees.

As of February 3, Hyperliquid clocked approximately $12.8 million in protocol revenues over the past seven days, compared with around $11.5 million for the Ethereum network. This flip in revenue highlights Hyperliquid's growing influence in the decentralized finance (DeFi) sector. Perpetual futures, derivatives that let traders buy or sell an asset at a future date with no expiration, have become increasingly popular on the platform.

Hyperliquid's transaction volume has been on a meteoric rise. As of February 3, the network has clocked approximately $470 million per day in transaction volume, nearly double its daily transaction volume at the start of the year. This growth is a testament to the platform's effectiveness as a venue for perpetual futures trading.

While Hyperliquid has outpaced Ethereum in seven-day revenues, it still lags behind Ethereum's roughly $4.7 billion in daily volume. However, Ethereum has faced a sharp dropoff in revenue following the network's March 2024 upgrade, which cut transaction fees by approximately 95%. This decline in revenue, coupled with intense competition from other layer-1 solutions, has given rise to platforms like Hyperliquid and Solana, which have been gaining traction in the DeFi space.

Solana, for instance, surpassed Ethereum in 24-hour decentralized exchange trading volume in January, boosted by memecoin trading activity. As of February 3, Solana sees more than double Ethereum's volume, with around $8.9 billion in daily transactions versus Ethereum's roughly $4 billion. This growing trading volume highlights Solana's expanding role in decentralized finance and its position as a competitor to Ethereum.

Hyperliquid's rise to prominence is also marked by the launch of its HYPE token in a November 2024 airdrop. As of February 3, HYPE trades at a fully diluted value of around $25 billion, having gained more than