Hyperliquid Captures 80% of DEX Market in Just One Year

In just a year, Hyperliquid has become the dominant player in the decentralized perpetual futures market. Redstone estimates that it controls about 80% of the market, with trading volumes comparable to major centralized exchanges. This raises concerns about how long this dominance can be sustained.

At its peak, Hyperliquid processed $30 million in trades daily.

The platform, co-founded by Jeff Yang, a former Hudson River Trading quant and Harvard graduate, chose to avoid venture capital from the start. That decision, coupled with good timing, allowed Hyperliquid to carve out a niche ahead of its competitors.

Built by a small team that funded itself and refused to accept money from venture capitalists, the platform proved that technical excellence and a community-driven economy could outperform well-funded competitors, Redstone said.

In early 2024, the decentralized exchange will take over dYdX accounted for about 30% of trading volume. By the end of the year, its share had fallen to about 7%, while Hyperliquid’s share stabilized above 65%, according to CoinGecko data.

Hyperliquid’s growth appears to be largely tied to execution. One-click trading, zero gas fees, and sub-second order confirmations make the platform more like a centralized exchange, which has helped attract both retail and professional traders.

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