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Hyperliquid's Latest Rise in Trading Activity: An In-Depth Look at On-Chain Liquidity and the Progression of DeFi

Hyperliquid's Latest Rise in Trading Activity: An In-Depth Look at On-Chain Liquidity and the Progression of DeFi

Bitget-RWA2025/11/21 12:36
By:Bitget-RWA

- Hyperliquid dominates decentralized derivatives with $317.6B Q3 2025 volume, 73% DEX market share, and $653B quarterly turnover. - HIP-3 growth mode slashed taker fees by 90%, while HyperEVM/HyperCore blockchain enables zero-gas, sub-second trades and cross-chain interoperability. - Platform faces volatility risks: 3 major 2025 attacks including $4.9M POPCAT bad debt incident, exposing thin-liquidity vulnerabilities. - HYPE token surged 640% post-2024 launch with $9.3B market cap, but faces competition f

Hyperliquid has quickly become a dominant force within decentralized finance (DeFi), drawing widespread attention due to its rapid increases in trading volume, user engagement, and overall market presence. By October 2025, the platform had achieved an impressive $317.6 billion in decentralized perpetual derivatives trading, . This level of success not simply about scale; it highlights Hyperliquid’s innovative approach to on-chain liquidity and its unique DeFi market framework. For investors, the main consideration has shifted from whether Hyperliquid is a disruptor to whether it can maintain its pace in the fast-changing, volatility-driven crypto sector.

On-Chain Liquidity: The Catalyst Behind Hyperliquid’s Expansion

Hyperliquid’s rise is rooted in its capacity to provide substantial, affordable liquidity—a vital element for attracting both individual and institutional traders. By July 2025, the platform had already surpassed $320 billion in perpetuals trading and generated $86.6 million in protocol revenue, with

. These numbers reflect a platform that expertly combines robust infrastructure with accessible trading costs.

A significant factor behind this liquidity boom is the introduction of Hyperliquid’s HIP-3 growth mode in November 2025. This program

for emerging markets, with elite traders benefiting from fees as low as 0.00144%. By lowering entry costs for both liquidity providers and traders, Hyperliquid has set off a positive feedback loop: reduced fees draw in more users, which strengthens order books and minimizes slippage. This effect is further enhanced by the platform’s HyperEVM and HyperCore blockchain, .

DeFi Market Structure: Uniting EVM and Native Chains

Hyperliquid’s technical setup has also transformed the structure of DeFi markets. By merging HyperCore and HyperEVM, the platform

, reducing security vulnerabilities and improving cross-chain compatibility. This is especially important in a DeFi landscape often troubled by cross-chain security issues. By allowing users to access Ethereum-based DeFi services (such as lending and borrowing) directly within its ecosystem, Hyperliquid has established itself as a comprehensive hub for on-chain activities.

Additionally, Hyperliquid’s share of the decentralized derivatives market climbed to 73% of DEX trading volume in Q3 2025,

. This market leadership is partly due to its revamped order book structure, which gives priority to cancel and post-only orders during periods of high volatility. This approach narrows spreads and allows market makers to respond quickly to price changes—a crucial benefit in a highly volatile environment.

Navigating Crypto Volatility: Prospects and Challenges

Hyperliquid’s position in the volatile crypto sector is both an asset and a potential weakness. Its advanced Layer 1 blockchain (HyperBFT consensus, 0.2-second block intervals) supports complex derivatives strategies, including diversified and hedged trading through collaborations like D2 Finance

. This performance demonstrates the platform’s ability to support scalable, on-chain structured products.

However, Hyperliquid’s prominence has also made it susceptible to market manipulation. In 2025, the platform experienced three significant incidents,

. These events reveal underlying risks in markets with limited liquidity, where sharp price movements can magnify losses for liquidity providers. For investors, this balance between cutting-edge innovation and inherent fragility calls for a careful assessment of Hyperliquid’s future outlook.

Investor Sentiment and Growth Potential

The performance of the HYPE token serves as an indicator of market confidence. Since its launch in November 2024,

, reaching a market capitalization of $9.3 billion and trading close to $28. The introduction of native staking has further boosted trust, with . This staking system not only strengthens network security but also aligns the interests of users and the protocol.

Nonetheless, competition is intense. Aster’s rollout of 300x leverage (compared to Hyperliquid’s 40x maximum) has attracted traders seeking greater risk and reward,

. While Hyperliquid’s emphasis on reliability and safety appeals to more cautious participants, its continued innovation in leverage and product offerings will be vital for maintaining its market position.

Conclusion: Betting on DeFi’s Next Chapter

Hyperliquid’s recent surge in trading activity highlights its expertise in on-chain liquidity and DeFi technology. Its ability to generate $317.6 billion in trading volume without depending on incentive programs, along with its advancements in interoperability and order book mechanics, cements its status as a frontrunner in decentralized derivatives. Still, the platform’s exposure to volatility-related risks—stemming from both manipulation and fierce competition—remains a significant concern.

For investors, Hyperliquid stands as a bold wager on the evolution of DeFi. Its HIP-3 expansion strategy and staking framework indicate a platform geared for ongoing growth, but the ever-changing crypto volatility sector requires constant innovation. Those prepared to manage the risks may find Hyperliquid’s growth story as compelling as its impressive statistics.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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