VanEck’s recent report has intensified attention on Hyperliquid, highlighting the protocol’s rapid ascent to a leading position in on-chain revenue generation, as it captured 35% of all blockchain fees in July 2025 and reported daily revenues near $3.7 million in August. The data presented positions Hyperliquid ahead of long-established networks in transaction revenue for that month, indicating a substantive shift in where trading activity and fee accrual are concentrated, and the magnitude of daily revenues in August underscores continued month-over-month growth. Observers note that rapid adoption followed a product strategy emphasizing simplicity and functionality, which appears to have attracted users migrating from other high-throughput chains, particularly those engaged in perpetual futures trading.
Hyperliquid’s trading volumes further illustrate its market impact, as the protocol recorded $648 billion in trading volume in Q2 2025 and secured 86% of perpetual futures volume by May 2025, a steep rise from 16% a year earlier. The platform expanded leverage options and added new perpetual markets tied to emerging tokens, which helped drive record metrics and broaden market participation, and community engagement combined with product enhancements contributed to an ecosystem valuation exceeding $10 billion. Hyperliquid’s dominance has also been reflected in increased developer activity and third-party integrations across the ecosystem.
These developments reflect a concentrated focus on derivatives trading and suggest that product-market fit in perps can rapidly reallocate liquidity across decentralized exchanges.
Capital deployment through token buybacks has been a prominent feature of Hyperliquid’s 2025 strategy, with the protocol spending approximately $645 million as part of a $1.4 billion buyback wave, accounting for nearly half of the market’s total buybacks that year. This aggressive repurchase activity coincided with an 85% month-over-month increase in buybacks in July 2025, and while buybacks can support token scarcity and price support, they also raise questions about long-term tokenomics and centralized capital influence on market dynamics. Total buybacks in 2025: about $1.4 billion.
Protocol-level innovation introduced in October 2025 via HIP-3 democratizes perpetual creation by allowing builders to deploy markets when staking substantial HYPE collateral, which removes gatekeepers but introduces oracle and manipulation risks, mitigated by slashing mechanisms and validator oversight, and safety features like trading halts aim to preserve market integrity when feeds fail or contracts expire.
