Hyperliquid has climbed to the forefront of decentralized perpetual swap platforms, recording an impressive trading volume. In the past few days, it surpassed other leading decentralized derivative platforms. Yesterday, Hyperliquid achieved nearly $1.39 billion in volume, significantly ahead of its competitors: Jupiter with $699 million, SynFutures at $556 million, and dYdX at $331 million, according to DeFiLlama data.
Hyperliquid is a decentralized platform that enables users to trade perpetual derivatives by aggregating liquidity from multiple sources. It provides the ability to trade cryptocurrencies with leverage, allowing users to borrow funds to enhance their purchasing power. Operating as a Layer 1 app chain, it features native tokens such as Purr and Points.
In recent months, the average daily transaction volume on Hyperliquid has surged, exceeding $1 billion and matching the volumes of various centralized exchanges. As a non-custodial platform, traders maintain access to their funds through a crypto wallet.
The platform utilizes a custom-built trading engine designed for low latency, facilitating rapid order execution on the Hyperliquid Chain, which is essential for high-frequency traders.
Perpetual swaps, or perps, are derivatives akin to futures but without a predetermined expiration date. They allow traders to maintain positions indefinitely as long as they uphold sufficient collateral. Initially popularized on centralized exchanges like BitMex in 2016, these products have recently gained traction on decentralized platforms.
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