Phantom Integrates Hyperliquid, Shifts 15 Million Users to Perps Market

Phantom wallet, a prominent digital wallet on the Solana blockchain, has announced its integration with Hyperliquid, a decentralized exchange (DEX) renowned for its perpetual contracts. This integration is notable as Phantom is the leading wallet on Solana, with 15 million monthly active users (MAUs), significantly outpacing competitors like Solflare or Backpack. The integration enables users to access Hyperliquid's perps directly from the Phantom wallet interface, a strategic move that could divert user activity and liquidity away from native Solana DEXs like Drift or Jupiter.

The decision to partner with Hyperliquid, rather than a native Solana DEX, is motivated by Hyperliquid's established presence in the perps market. This integration does not necessarily enhance Solana's fees or total value locked (TVL), as it directs user activity to a competing platform. This shift highlights the changing dynamics of decentralized finance (DeFi), where user preferences and liquidity flows are increasingly influenced by the functionality and user experience of individual platforms, rather than loyalty to a specific blockchain.

In a related development, Kraken and Backed have announced the launch of xStocks on the BNB Chain. xStocks, a tokenized stock product initially debuted on Solana, will now allow eligible Kraken customers to deposit and withdraw BEP-20 stock tokens directly from the exchange. This move aligns with Backed co-founder Adam Levi's vision for xStocks to become a neutral, public good asset class, expanding its reach across multiple chains and exchanges. Bybit is also integrating xStocks, further solidifying its multichain strategy.

These developments affirm several investor mental models. The Phantom x Hyperliquid integration supports both the "Fat Wallet" and "Fat App" theses, suggesting that exceptional wallets and apps can independently attract users, regardless of the underlying blockchain. However, the move also underscores the growing importance of "Fat Exchanges" like Robinhood or Kraken, which can leverage their user base to dominate multiple chains. Kraken's decision to rapidly expand to multiple chains, including BNB Chain, underscores its strategy to cement its position across various blockchains, ensuring it remains a dominant player in the evolving DeFi landscape.