A new dissertation from Defi Analyst Patrick Scott claims that despite having lost the market share to rivals, Hyperliquid is still the most invested decentralized exchange for eternal futures.
PERP DEX MARKET IN FLUX
Eternal futures – or PERPS – Are crypto belts that allow traders to speculate on prices without expiry date. The decentralized platforms that host them, known as perp dexes, have risen in popularity when dealers move activity away from centralized exchanges (CEXES) such as Binance.
Scott noted that perp dexes has been 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 an important driving force for this growth.
The recent shifts have still raised questions. Hyperliquid’s share of perp dex volume decreased from 45% to only 8% in recent weeks, while Binance-affiliated Rival Aster Balloned to more than $ 270 billion in weekly trades. Other upstarts, such as lighter and edgex, also released triple percentage gains in activity.
Why hyperliquid still stands out
Scott argued that Hyperliquids are basically separating it. The exchange continues to generate strong revenue and deals with what he described as a reasonable multiple compared to peers, with user sticky reflected in open interest.
“Unlike the volume and revenue measuring activity measures open interest liquidity. It’s very sticky,” he wrote, noting that Hyperliquid still commands about 62% of Perp Dex Open Interest Market.
In addition to trade, Scott highlighted expansion plans, including the Hyperevm network, already hosting over 100 protocols and $ 2 billion in the total value locked and USDH, a stablecoin supported by reserves held with blackrock and superstate.
Another initiative, HIP-3, would allow builders to launch new PERPS markets by putting large amounts of hype, creating what Scott described as a “supply hand washing” to the token.
Scott warned that his thesis would be invalid if Hyperliquid’s open interest or revenue fell significantly or if USDH did not get liquidity in the next year. But so far, he maintains Hyperliquid is better located than competitors running heavy incentive programs.
