In a recent analysis, Patrick Scott claimed that despite a decline in market share, Hyperliquid is maintaining the best position in perpetual futures trading. Decentralized exchanges (DEXs) for perpetual futures saw their market share rise sharply from under 2% in 2022 to over 20% in September. During this period, Hyperliquid’s volume share dropped from 45% to 8%, while Aster, linked to Binance, surpassed $270 billion in weekly transactions. Scott’s thesis closely examines not only Hyperliquid but also the ecosystem’s token, HYPE.
Open Position Leadership
Patrick Scott noted that open positions, unlike volume and revenue, reflect liquidity and tend to be more stable. He highlighted that as of October, Hyperliquid continues to lead the field with a market share of approximately 62% in open position in the perpetual futures DEX segment. User engagement and position depth remain fundamental factors bolstering the platform’s standing against short-term market fluctuations.
Sustainable leadership in open positions ensures seamless price discovery and risk transfer in derivative products. However, Scott cautioned that if there is a significant decline in open positions or revenue, the validity of his thesis could be compromised.
HIP-3’s Impact on Hyperliquid and HYPE Token
HIP-3, central to Hyperliquid’s roadmap, enables developers to establish new perpetual futures markets, mandating a substantial stake of HYPE tokens. This model aims to broaden the product range while creating a locking effect on the token’s supply, providing demand-driven support for HYPE. The entry barriers are designed to ward off low-quality markets and preserve depth.
Scott identified critical factors for assessing HIP-3’s impact, such as market opening speed, staking demand, and resulting transaction depth. The anticipated leverage in the ecosystem is expected to strengthen USDH’s liquidity over the next 12 months and establish a lasting revenue trend.
HYPE token, priced at $49.54 after a 1.17% increase in the last 24 hours, has maintained strength, boasting a 1448% rise over the past year.
