Hyperliquid's Price Drops 2.658% Amidst 13.6% Monthly Volume Surge

Hyperliquid's latest price was $44.41, down 2.658% in the last 24 hours. Hyperliquid, a decentralized exchange platform, has been making significant strides in the perpetual futures market. The platform has seen its monthly trading volume surge to 13.6% of Binance’s volume, marking a substantial increase from approximately 8% at the start of the year. This growth indicates a strong shift in trader preferences towards Hyperliquid, driven by its technological edge, competitive fee structures, and user-friendly interface.

Hyperliquid’s success can be attributed to several key factors. The platform leverages a high-performance architecture that results in lower latency and faster trade execution, which is crucial for traders in the fast-paced perpetual futures market. Additionally, Hyperliquid offers more attractive fee models compared to other exchanges, making it a cost-effective option for high-volume traders. The platform’s streamlined interface and intuitive trading tools further enhance the user experience, making it accessible for both novice and experienced traders.

Traders are increasingly choosing Hyperliquid for perpetual futures due to its ability to execute trades swiftly without significant slippage. The platform’s robust security measures and reliable uptime build trust among users. Hyperliquid’s focus on core trading functionality, rather than a broad suite of unrelated services, resonates with many dedicated derivatives traders. Key benefits for traders include reduced latency for critical trading decisions, potentially lower fees enhancing overall returns, and a platform built with modern trading demands in mind.

The continued expansion of Hyperliquid perpetuals poses an interesting challenge to established players. While Binance holds a dominant position, the rapid growth of competitors suggests that the market is far from saturated. This competitive environment encourages all platforms to innovate and improve their offerings continuously. For traders, this means more choices and potentially better conditions. As Hyperliquid continues to scale, it will be important to observe how it manages liquidity, introduces new features, and addresses any scalability challenges. Its ability to maintain its competitive edge will determine its long-term success in this dynamic market.

Institutional investors now have their first exposure to Hyperliquid’s native token through a Europe-listed crypto ETP. 21Shares, a Switzerland-based asset manager and issuer of crypto exchange-traded products (ETPs), has listed the Hyperliquid ETP on the SIX Swiss Exchange. The product gives investors exposure to the Hyperliquid token without the need for wallets or on-chain custody. This listing marks the first institutional-grade product offering exposure to the Hyperliquid protocol, which processes more than $8 billion in daily volume, with $2 trillion in trades since its 2023 launch, and roughly 80% of the total decentralized perpetuals activity.

Hyperliquid, launched in late 2022, is a layer-1 blockchain with a decentralized exchange for perpetual futures. Unlike most DeFi platforms that use automated market makers, it runs a traditional on-chain order book that matches buy and sell orders directly, clearing trades in under a second without outside oracles or off-chain infrastructure. Users connect via wallets to place spot or perpetual orders, which settle natively on-chain. Trading fees are funneled into daily buybacks of the HYPE token, the protocol’s native asset. This model has fueled rapid growth, with Hyperliquid setting records in trading volume, revenue, and user activity over the past few months.

In July, the exchange processed $319 billion in trades, the highest monthly volume ever for a DeFi perpetuals platform, helping push total decentralized perp volume to nearly $487 billion. It also captured 35% of all blockchain revenue that month, a share that came at the expense of Solana, Ethereum, and BNB Chain. The platform emerged as the seventh-largest derivatives exchange overall by daily activity, surpassing 600,000 registered users in July. While a 37-minute outage on July 29 temporarily sidelined traders, Hyperliquid reimbursed $2 million in losses, drawing praise from its community for the quick response.

However, concerns about Hyperliquid’s market integrity emerged when four large traders pocketed nearly $48 million in suspected manipulation of Plasma’s XPL token. The token briefly spiked 200% to $1.80 before smaller traders absorbed large losses. Despite these incidents, optimism around the protocol’s long-term trajectory continues to build. The platform’s ability to maintain high standards in security and reliability will be crucial for sustained growth. The focus on core trading functionality, rather than a broad suite of unrelated services, resonates with many dedicated derivatives traders.

A significant market incident occurred involving Hyperliquid's perpetual futures market for XPL tokens around August 27th, 2025. A large trader, described as a whale, executed trades that dramatically inflated the price of XPL futures contracts by approximately 200% within minutes. This action resulted in substantial profits estimated around $15 million for the whale trader, while simultaneously triggering losses and liquidations exceeding $17 million for other traders on the platform.

The event sparked criticism and demands for explanations from affected parties. A crypto hedge fund and numerous traders questioned why Hyperliquid lacked sufficient safeguards to prevent such a significant distortion of contract prices, especially as XPL prices remained relatively stable on competing exchanges during the incident. Critiques centered on the argument that the platform's structure for its newer pre-market perpetual futures contracts inherently carries high risk and may not offer adequate protection against manipulation, potentially enabling large traders to exploit the system.

Hyperliquid responded by stating that the platform functioned as designed, emphasizing the inherent unpredictability associated with pre-market perpetual contracts. This volatility event exposed critical vulnerabilities regarding market manipulation risks within specific sectors of its derivatives offerings, particularly newer token launches like the one for Plasma's XPL token, despite Hyperliquid's position as a leader in decentralized perpetual futures trading.

Separately, on August 29th, 2025, a significant development emerged for institutional access to Hyperliquid. 21Shares, a leading crypto exchange-traded product issuer, launched the first Exchange Traded Product (ETP) tracking Hyperliquid. This listing occurred on the SIX Swiss Exchange, representing a major step in providing regulated, traditional finance exposure to the decentralized Hyperliquid protocol. This ETP facilitates institutional investor participation in Hyperliquid without requiring direct interaction with the underlying decentralized platform.

Despite the recent controversy, Hyperliquid maintains a dominant position within the decentralized derivatives sector. Industry data indicates it commanded approximately 75% of the decentralized perpetual futures volume in 2025, processing a massive $357 billion in trading volume year-to-date via its unique hybrid Layer-1/EVM architecture. Its continued growth trajectory underscores its significant role in blending the speed and usability of centralized exchanges with the transparency and self-custody principles of decentralized finance.