Hyperliquid has quickly emerged as a dominant force in the decentralized derivatives market, securing 35% of the total blockchain revenue in July. This surge in adoption has been largely fueled by the platform’s ability to capture high-value users from Solana, Ethereum, and BNB Chain, with Solana specifically feeling the impact.
Hyperliquid captures market share from Solana amid challenges
According to a monthly recap by VanEck, Hyperliquid’s growth was particularly significant at the expense of Solana, which has faced reliability issues and struggled to meet deadlines for software upgrades. Hyperliquid’s superior product offering, specifically its derivatives trading, allowed it to poach high-value users from Solana.
Hyperliquid has poached high-value users from Solana and has retained them, said Matthew Sigel, head of digital assets research at VanEck. With Solana failing to improve its user experience, particularly in the perpetual futures market, Hyperliquid’s innovative and user-friendly platform became an appealing alternative.
Open interest and Phantom Wallet integration drive adoption
Hyperliquid has also seen substantial growth in its open interest, which surged by 369% year-to-date, reaching $15.3 billion in July. The platform’s integration with Phantom Wallet, offering in-app perpetual futures (perps), played a major role in this growth. In July, Phantom Wallet integration helped drive $2.66 billion in volume, $1.3 million in fees, and 20,900 new users.
Perpetual futures, which allow traders to speculate on cryptocurrency prices without expiration dates, have become a major product for Hyperliquid, setting it apart from competitors and fueling its success.
HYPE token hits new highs as platform gains momentum
In tandem with Hyperliquid’s growing dominance, its native token, HYPE, also reached new heights, hitting an all-time high of $49.75 in mid-July, up significantly from a low of just over $10 in April. Despite a 3% daily drop amid broader market retreat, the rally of HYPE reflects growing confidence in Hyperliquid’s long-term growth potential.
While Solana’s native token, SOL, has seen a 44% decline from its January all-time high, Hyperliquid’s success continues to attract traders and institutional users, positioning the platform as a leading player in the decentralized finance (DeFi) space.