Key Notes
Hyperliquid recorded an 843% increase in perpetual trading activity amid high leverage bets from traders.
Judging by these records, it is clear that Hyperliquid is encroaching on Binance's market dominance.
However, HYPE price does not reflect this positive sentiment with its current bearish outlook.
Top perpetual futures trading platform Hyperliquid (HYPE) is on its way to challenge the dominance of Binance in the trading volume metric. In May, Hyperliquid facilitated more than $248 billion in perpetual trading activity, marking a new all-time high (ATH) in monthly futures volume.
Hyperliquid Records 843% YoY Increase in Perp Volume
According to a report from The Block, the recorded volume represented a 51.5% month-over-month increase compared to the $187.5 billion volume recorded in April. Recall that Hyperliquid registered just $26.3 billion in perpetual trading volume in May 2024. Compared to the $248 billion recorded in May, this represents an 843% year-over-year increase.
Judging by such explosive growth, the platform has positioned itself as the dominant player in the on-chain perps vertical. Within a year, Hyperliquid has successfully blended the grade performance of Centralized Exchange (CEX) with native crypto rails. The ratio of monthly perpetual volume between the platform and leading cryptocurrency CEX Binance has reached 10.54%.
This is a little higher than the April peak ratio of 9.76%. By all means, it is becoming more difficult to ignore Hyperliquid’s encroachment on Binance’s dominance in the perpetual futures landscape.
Markedly, Hyperliquid’s rising momentum against Binance is due to the platform’s UX. It is also attributed to its Season 2 points campaign, which follows the successful Season 1 airdrop. While Hyperliquid’s UX competes intensely with the functionality of CEX and mitigates custodial risks, the Season 2 points campaign significantly entices traders.
A week ago, the platform’s revenue shot up significantly, overtaking the likes of Ethereum (ETH), Solana (SOL), and BNB Chain. This was around when it was announced that crypto trader James Wynn took massive leverage bets on the platform over three months, thereby boosting network activity.
Even its Total Value Locked (TVL) doubled over 30 days to an impressive $1.46 billion. Hyperliquid’s partial liquidation mechanism, introduced in March, played a key role in mitigating the impact of market volatility.
HYPE Posed For More Price Gains
Given the numerous outstanding activities within the Perp trading platform, its native token, HYPE, has been under investors’ radar. In May, its price reached 75% profit, making it one of the top cryptocurrencies. That same month, HYPE saw a massive jump in its open interest.
The OI metric moved from $8 billion just two days prior to $9.2 billion, around the time of heightened trading activity and significant regulatory engagement. A significant percentage of the OI boost was attributed to BTC derivatives, which accounted for $4.2 billion, over 40% of the platform’s total.
Consequently, HYPE hit a new ATH at $37.44, while its market cap rallied past the $12 billion range. At the time of this writing, HYPE traded for $33.65, corresponding to a 2.81% drop in price over the last 24 hours. Its market capitalization has dropped to $11.21 billion, while its trading volume is at $223.56 million.
Hyperliquid reached new all-time highs again:
+ Open interest: $10.1B
+ 24h fees: $5.6M
+ USDC TVL: $3.5BWelcome to all new members of the ecosystem. pic.twitter.com/AoWVPRINGA
— Hyperliquid (@HyperliquidX) May 26, 2025
For now, it can not be said that Hyperliquid’s encroachment into Binance dominance has positively influenced its price outlook.
