Deciphering the Rise of Hyperliquid Popularity: A Tactical Move for Investors in 2025

Hyperliquid: Transforming DeFi and Blockchain in 2025

The decentralized finance (DeFi) and blockchain sectors are undergoing significant transformation in 2025, with platforms such as Hyperliquid at the forefront. Hyperliquid’s swift evolution—from a specialized DeFi protocol to a leading player in decentralized perpetual trading—offers valuable insights for investors seeking rapid growth. This analysis explores the drivers behind Hyperliquid’s expansion, its competitive strengths and vulnerabilities, and practical guidance for retail investors navigating this dynamic landscape.

Technological Innovations: HyperEVM and the Unit Layer

Hyperliquid’s leadership in decentralized perpetual futures is anchored in its advanced infrastructure. The introduction of HyperEVM in February 2025 was a game-changer, bringing Ethereum Virtual Machine (EVM) compatibility and seamless integration with Ethereum-based applications. This advancement broadened the spectrum of supported assets and enabled direct deposits of major cryptocurrencies like BTC and ETH, helping the HyperEVM ecosystem reach a total value locked (TVL) of $2.08 billion.

Alongside HyperEVM, the Unit layer delivers ultra-fast trade execution and near-instant confirmations. These capabilities have propelled Hyperliquid to process a staggering $47 billion in weekly trading volume by mid-2025, capturing 70–80% of the decentralized perpetual trading market. For comparison, this far surpasses the $145 billion 30-day volume of its closest rival, Aster, even with Aster’s aggressive leverage offerings. Hyperliquid’s 62% share of open interest in the perpetual DEX market further highlights its deep liquidity and strong user retention.

Institutional Integration and Regulatory Progress

Hyperliquid’s expansion is fueled not only by retail users but also by strategic alliances and regulatory achievements. Its partnership with Safepal—a provider of hardware and software wallets—allows investors to access Hyperliquid’s 40x leverage perpetual futures directly from their wallets, simplifying onboarding for both institutional and advanced retail participants. The platform’s SEC S-1 registration marks a significant step toward regulatory compliance, attracting investment from firms such as Eyenovia and Sonnet BioTherapeutics.

Institutional trust in Hyperliquid is further strengthened by the Hyperliquid Strategies digital asset treasury (DAT), which raised $1 billion through a merger with Sonnet BioTherapeutics and Paradigm-affiliated organizations. This influx of capital has enhanced liquidity pools and reinforced Hyperliquid’s reputation in a sector where trust is paramount.

Opportunities for Retail Investors: High Leverage, Minimal Fees, and Easy Access

For individual traders, Hyperliquid stands out for its affordable, high-leverage trading environment. With maker fees as low as 0.015% and a no-KYC onboarding process, the platform lowers barriers to DeFi derivatives trading. The addition of USDC/CCTP for fiat support further streamlines trading, letting users move in and out of positions without depending on centralized exchanges.

The Hyperliquidity Provider (HLP) program offers liquidity providers an average annual yield of 11%, a notable improvement over traditional markets where returns are often less transparent. Hyperliquid’s rapid listing of trending assets—such as the Trump memecoin and PUMP token—has also attracted speculative traders, fueling spikes in trading activity and user growth.

Key Risks: Regulatory, Tokenomics, and Security Concerns

Despite its advantages, Hyperliquid faces several challenges. Regulatory uncertainty remains a significant risk. While the SEC’s approval of an ETF for Hyperliquid’s HYPE token signals institutional interest, it also brings increased regulatory scrutiny, which could slow innovation if compliance requirements intensify.

Tokenomics present another hurdle. The upcoming release of $10.8 billion in HYPE tokens could put downward pressure on the token’s price and dilute current holders. Investors must weigh these risks against the token’s utility in governance and staking, which currently support demand.

Security is also a concern. A sophisticated attack on Hyperliquid’s liquidation system in March 2025 exposed vulnerabilities, even in advanced DeFi protocols. Although the platform has since strengthened its defenses, prudent risk management—such as limiting leverage and diversifying across platforms—remains essential for retail investors.

Competitive Dynamics: Hyperliquid Versus Aster

Hyperliquid’s market leadership is being tested by Aster, a platform supported by Binance co-founder CZ. Aster’s features—including no-bridge deposits, multi-chain compatibility, and hidden orders—appeal to traders seeking flexibility. However, Hyperliquid’s custom-built architecture for high-frequency trading ensures it maintains a performance advantage. Analysts caution that Aster’s reliance on extreme leverage (up to 1001x) may not be sustainable in the long term.

Hyperliquid’s future plans, such as HIP-3 (enabling permissionless perpetual market creation) and the launch of USDH (a stablecoin backed by U.S. Treasuries), are designed to diversify revenue and reduce reliance on perpetual trading alone, further solidifying its market position.

Final Thoughts: Navigating Hyperliquid’s Potential in 2025

Hyperliquid stands at the intersection of DeFi innovation, institutional participation, and retail accessibility. Its robust technology, regulatory advancements, and ecosystem growth make it a formidable contender in decentralized trading. For investors, the challenge is to balance Hyperliquid’s significant growth prospects with its inherent risks.

Retail participants may consider allocating a portion of their high-growth portfolios to Hyperliquid, taking advantage of its low fees, liquidity incentives, and strategic collaborations. However, thorough due diligence is crucial: staying informed about regulatory changes, tokenomics developments, and security measures will be key to long-term success. As DeFi evolves, Hyperliquid’s adaptability and innovation will determine whether it remains a leader or yields ground to new challengers.