Despite Aster’s Rapid Rise, Hyperliquid Holds the Strongest Position Among Perp DEXs, Says DeFi Analyst

Hyperliquid Seen as Strongest Perp DEX Despite Market Share Decline, Analyst Says

Competition in decentralized perpetuals trading is heating up, but DeFi analyst Patrick Scott argues that Hyperliquid’s fundamentals give it long-term staying power.

Perp DEX Market in Transition

Perpetual futures — or “perps” — are crypto derivatives that allow traders to speculate on asset prices without expiry. Decentralized venues for these products, known as perp DEXes, have gained significant traction as traders increasingly migrate away from centralized exchanges (CEXes) like Binance.

According to Scott, perp DEXes have grown from under 2% of centralized perpetual trading activity in 2022 to more than 20% of the market last month. Hyperliquid, which issues the HYPE token, has been one of the main drivers of this growth.

Still, the competitive landscape has shifted dramatically. Hyperliquid’s market share of perp DEX trading volume has tumbled from 45% to just 8% in recent weeks, while Binance-affiliated rival Aster surged past $270 billion in weekly trades. Other new entrants, including Lighter and edgeX, also recorded triple-digit growth in volumes.

Why Hyperliquid Still Leads

Despite the sharp decline in share, Scott contends Hyperliquid remains the most “investable” perp DEX. He points to strong revenue, what he considers a fair valuation relative to peers, and deep user engagement reflected in open interest.

“Unlike volume or revenue, which capture short-term trading activity, open interest represents liquidity — and it’s far stickier,” Scott wrote, noting that Hyperliquid still commands around 62% of perp DEX open interest globally.

Beyond trading metrics, Scott highlighted Hyperliquid’s broader ecosystem expansion. The project’s HyperEVM network already hosts more than 100 protocols with $2 billion in total value locked. Its stablecoin, USDH, is backed by reserves managed by BlackRock and Superstate, providing institutional-grade credibility.

Another development, HIP-3, would allow builders to introduce new perp markets by staking substantial amounts of HYPE, creating what Scott describes as a “supply sink” for the token.

Key Risks

Scott acknowledged risks to his thesis. A sharp decline in Hyperliquid’s open interest or revenue, or a failure by USDH to attract meaningful liquidity in the next year, could undermine the bullish case. For now, however, he believes Hyperliquid is better positioned than competitors relying heavily on incentive-driven growth.