Perpetual futures—better known as perps—are the lifeblood of crypto speculation. These no-expiry, high-leverage contracts are the engine behind the nonstop, 24/7 thrill ride that defines digital asset markets. Unlike traditional futures with settlement dates, perps allow traders to roll their bets indefinitely, making them both seductive and dangerous.
But where are most of these turbo-charged trades actually happening?
Welcome to Hyperliquid
In just two years, a decentralized exchange called Hyperliquid has emerged as the undisputed king of perp trading. Built on its own high-performance blockchain, Hyperliquid now commands a staggering 70–80% of the market for perpetual futures. In July alone, it handled $300 billion in trading volume, outpacing fintech giant Robinhood’s $237.8 billion. August saw it rake in over $100 million in revenue, putting its annualized revenue at a jaw-dropping $1.4 billion—with a team of just 11 people.
Do the math: by revenue-per-employee, Hyperliquid may be the most profitable company on Earth.
And its native token, HYPE, is surging too, nearing a $12 billion market cap—a number that would make most Fortune 500 companies jealous.
Why Perps Dominate Crypto
Perps aren’t just another derivative—they’re arguably crypto’s greatest invention. Easier to grasp than options, available around the clock, and often offering up to 40x leverage, they fuel the dreams (and nightmares) of retail traders and degens alike. “I’m willing to roll the dice 100 times and lose everything 99 of them for the one chance that my bet is going to return 10,000x,” says Tyler Tarsi, CTO at Omni Labs. That mindset, while risky, is a perfect fit for crypto’s always-on adrenaline economy.
Offshore Advantage and No KYC
One reason for Hyperliquid’s success? No KYC requirements. Most U.S.-based platforms enforce strict know-your-customer rules. Hyperliquid, accessible offshore, skips the red tape. That’s given it a massive, global user base free from compliance bottlenecks.
The Genius of Jeff Yan
Credit also goes to Hyperliquid’s founder, Jeff Yan, formerly of Hudson River Trading. Without raising any outside funding, Yan and his lean team built a decentralized venue that competes with centralized exchanges in both speed and precision. That’s nearly unheard of, says Artemis’ Zheng Jie Lim.
Hyperliquid’s token strategy also turned heads. In late 2024, they dropped $7.5 billion worth of HYPE tokens into 94,000 wallets. The airdrop wasn’t just generous—it was legendary. And it kicked off a flywheel of user incentives: 99% of trading fees go toward token buybacks, driving price momentum and community loyalty.
Beyond Crypto: Spot Markets and Traditional Assets
Hyperliquid isn’t stopping at perps. It recently hit $3.4 billion in daily spot volume, becoming the second-largest Bitcoin trading venue globally. A native stablecoin ecosystem is emerging, and the upcoming HIP-3 upgrade could enable perps on anything—from gold and the S&P 500 to Palantir stock.
The Arms Race Has Begun
Coinbase, with CFTC-regulated perps on BTC and ETH, joined the game in July. Robinhood launched perps in the EU shortly after. While these legacy players cap leverage at 10x or lower, their brand trust and scale make them fierce competitors.
Still, history suggests the crown is never safe. FTX, dYdX—they all had their moment. “Traders are mercenaries,” says Tarsi. “They follow performance.”
For now, Hyperliquid is winning the war. But in crypto, the next king is always just one airdrop away.
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