Hyperliquid, once a dominant force in the on-chain perpetuals market, has seen its market share decline significantly from 71% in May to 38% as competitors like Aster and Lighter gain traction. This shift is further highlighted by the exit of prominent investors such as Machi Big Brother, who incurred a $4.5 million loss, and the withdrawal of $122 million in HYPE tokens by a major whale, signaling a potential loss of confidence among key stakeholders.
Despite these challenges, Hyperliquid's ecosystem continues to attract attention, particularly through its liquid staking protocol, Kinetiq, which has experienced a surge in total value locked, reaching over $2.1 billion. However, the increased competition from new decentralized exchanges and the rotation of capital and attention towards emerging DEX tokens suggest that Hyperliquid must innovate and adapt to maintain its position in the rapidly evolving crypto landscape.
Hyperliquid's Market Shift: Navigating New Challenges
September 24, 2025
1 min read
Hyperliquid, once a dominant force in the on-chain perpetuals market, has seen its market share decline significantly from 71% in May to 38% as competitors like Aster and Lighter gain traction. This shift is further highlighted by the exit of prominent investors such as Machi Big Brother, who incurred a $4.5 million loss, and the withdrawal of $122 million in HYPE tokens by a major whale, signaling a potential loss of confidence among key stakeholders.