.png)
3 weeks ago
7
Perp DEX competition is heating up, but DeFi analyst Patrick Scott says Hyperliquid’s revenue, open interest and ecosystem give it staying power.
Updated Oct 3, 2025, 4:23 a.m. Published Oct 3, 2025, 4:20 a.m.
A new thesis from DeFi analyst Patrick Scott argues that despite losing market share to rivals, Hyperliquid remains the most investable decentralized exchange for perpetual futures.
Perp DEX market in flux
Perpetual futures — or perps — are crypto derivatives that allow traders to speculate on prices without an expiry date. The decentralized platforms that host them, known as perp DEXes, have surged in popularity as traders move activity away from centralized exchanges (CEXes) such as Binance.
Scott noted that perp DEXes have expanded from less than 2% of CEX perpetual trading volume in 2022 to more than 20% last month. Hyperliquid, which issues the HYPE token, has been a key driver of that growth.
Still, recent shifts have raised questions. Hyperliquid’s share of perp DEX volume fell from 45% to just 8% in recent weeks, while Binance-affiliated rival Aster ballooned to more than $270 billion in weekly trades. Other upstarts such as Lighter and edgeX also posted triple-digit percentage gains in activity.
Why Hyperliquid still stands out
Scott argued that Hyperliquid’s fundamentals set it apart. The exchange continues to generate strong revenue, trading at what he described as a reasonable multiple compared to peers, with user stickiness reflected in open interest.
“Unlike volume and revenue, which measure activity, open interest measures liquidity. It’s much stickier,” he wrote, noting Hyperliquid still commands about 62% of the perp DEX open interest market.
Beyond trading, Scott highlighted expansion plans including the HyperEVM network, already hosting over 100 protocols and $2 billion in total value locked and USDH, a stablecoin backed by reserves held with BlackRock and Superstate.
Another initiative, HIP-3, would allow builders to launch new perps markets by staking large amounts of HYPE, creating what Scott described as a “supply sink” for the token.
Scott cautioned that his thesis would be invalidated if Hyperliquid’s open interest or revenue dropped materially, or if USDH failed to gain liquidity over the next year. But for now, he maintains Hyperliquid is better positioned than competitors running heavy incentive programs.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
Total Crypto Trading Volume Hits Yearly High of $9.72T
Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
What to know:
- Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
- Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform
- Open interest across centralized derivatives exchanges rose 4.92% to $187 billion
More For You
Bitcoin to $200K by End of 2025? This Cycle Indicator Points to Explosive Months Ahead
On-chain valuation puts the key threshold at the Trader’s Realized Price of $116,000, and a multiweek break above that could set the stage for $200,000.
What to know:
- Bitcoin demand has been increasing since July, potentially setting up for a late-year rally to over $200,000.
- Large holders and ETFs are driving demand, with significant increases in BTC holdings compared to previous years.
- A price move above $116,000 is crucial for transitioning into a bull market phase, with potential valuations between $160,000 and $200,000.
