Hyperliquid: From market maker to top DEX in perpetual futures
Hyperliquid is a decentralized exchange (DEX) built on its own layer-1 network, specializing in perpetual futures trading. Since its 2023 mainnet launch, it has processed trillions in volume and become the fifth-largest DEX by 30-day volume, per DeFiLlama. The platform's native token HYPE has risen to top-10 crypto by market cap. Hyperliquid offers low fees, up to 40x leverage, and supports major coins like Bitcoin, Ethereum, and Dogecoin on a single interface. It gained notoriety in March 2025 when a whale's $521M short position on Bitcoin sparked community attempts to liquidate him, ultimately netting $3.9M in profit. Founder Jeff Yan self-funded the project with an 11-person team, rejecting VC funding. The collapse of FTX in 2022 was a catalyst, prompting the team to go 'all in' on a DEX. Hyperliquid's November 2024 airdrop of $1.6B in HYPE tokens spurred explosive growth. However, the platform has faced challenges, including North Korean hacker probes, a liquidation crisis in December 2024 that forced delisting of a Solana meme coin, and regulatory warnings from the UK's FCA in May 2026. Recent upgrades: HIP-3 (permissionless builder-deployed perpetual markets) and HIP-4 (fully collateralized outcome markets) since October 2025. In September 2025, Hyperliquid launched USDH, a community-aligned stablecoin with a revenue-sharing model. The platform has also attracted institutional interest, with Bitwise and 21Shares filing for HYPE ETFs in May 2026. ICE founder Jeff Sprecher noted Hyperliquid's volume exceeds Nasdaq's.
Key facts
- Self-funded DEX on its own L1, specializing in perpetual futures with up to 40x leverage.
- $1.6B HYPE airdrop in Nov 2024 fueled growth; token now top-10 by market cap.
- March 2025 whale drama: $521M BTC short at 40x ended with $3.9M profit.
- December 2024 liquidation crisis forced delisting of Solana meme coin.
- FCA warning in May 2026; Bitwise and 21Shares filed for HYPE ETFs.