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Hyperliquid's 2025 Boom: Blockchain-Based Liquidity and Shifting Retail Trading Trends

Hyperliquid's 2025 Boom: Blockchain-Based Liquidity and Shifting Retail Trading Trends

Bitget-RWA2025/11/07 21:20
By:Bitget-RWA

- Hyperliquid's TVL surged to $5B in Q3 2025, capturing 73% of decentralized perpetual trading volume via on-chain liquidity and retail demand. - Technological innovations like HyperEVM and strategic partnerships drove $15B open interest, outpacing centralized rivals' combined liquidity. - Retail traders executed extreme leverage (20x BTC/XRP shorts) and $47B weekly volumes, highlighting both platform appeal and liquidation risks. - Institutional interest (21Shares ETF application) and deflationary tokenom

Hyperliquid experienced explosive growth in 2025, transforming the decentralized derivatives sector as its on-chain liquidity and retail trading activity fueled record expansion. The platform’s Total Value Locked (TVL) jumped from $3.5 billion at the beginning of 2025 to more than $5 billion by the third quarter. Now, Hyperliquid accounts for 73% of all decentralized perpetual trading volume, surpassing centralized competitors such as ByBit and OKX, according to the

. This market leadership is the result of technological breakthroughs, key partnerships, and a wave of retail involvement, all of which have reshaped the DeFi landscape.

On-Chain Liquidity: Driving Expansion

In 2025, Hyperliquid’s liquidity profile demonstrated the platform’s readiness for ongoing growth. By the third quarter, open interest (OI) soared to $15 billion, far exceeding the combined OI of all other decentralized perpetual exchanges, based on the

. This deep liquidity is essential for attracting both institutional and retail participants, as it provides low slippage and strong market stability. The Hyperliquidity Provider (HLP) maintained a steady TVL of $372 million, with net profits increasing from $50 million to $68 million so far this year, according to the
.

One of the main factors behind this liquidity boom is Hyperliquid’s HyperEVM, which reached $2 billion in organic TVL by mid-2025, as highlighted in the

. This technical advancement, along with anticipation for a second HYPE token airdrop, has encouraged more users and capital to join the platform, according to the
. Furthermore, strategic collaborations—such as the HAUS partnership with Felix—have broadened Hyperliquid’s offerings, enabling custom on-chain perpetual futures through the HIP-3 protocol, as detailed in the
. These initiatives have not only diversified revenue but also reinforced Hyperliquid’s role as a core infrastructure provider for derivatives trading.

Hyperliquid's 2025 Boom: Blockchain-Based Liquidity and Shifting Retail Trading Trends image 0

Retail Trading Patterns: Leverage, Activity, and Risk

Retail investors have been central to Hyperliquid’s rapid ascent in 2025, with their trading habits showing both aggressive strategies and a willingness to take risks. Third-quarter data shows some traders using high leverage—such as a 20x short position on $116 million in

and with only 7 million , as reported by the
. While the average trade size is not disclosed, Hyperliquid’s weekly trading volume averaged $47 billion in the first half of 2025, reaching a high of $78 billion in mid-May, according to the
. This points to a blend of large institutional and affluent retail trades, alongside frequent smaller transactions.

Retail trading activity has also intensified, with users like "Calm Down and Open Single King" executing 17 BTC and

trades in just one month, as mentioned in the
. This level of engagement highlights the platform’s appeal to skilled traders seeking fast, leveraged opportunities. However, the risks are significant: a single liquidation in October 2025 erased $20.35 million in XRP short positions, illustrating the dangers of leveraged trading, as noted in the
.

Institutional Momentum and Ecosystem Growth

Hyperliquid’s ecosystem has begun to attract institutional players, with 21Shares filing a U.S. SEC application for a Hyperliquid ETF, as reported by the

. This step marks increasing acceptance in mainstream finance and could pave the way for new investment. Meanwhile, the platform’s deflationary token model—which includes $2.02 million in daily HYPE buybacks—has supported the token’s value, with HYPE appreciating 64.8% so far this year, according to the
.

Nevertheless, there are challenges ahead. The resignation of Hyperion DeFi’s CEO in November 2025 raised questions about the company’s stability, as reported in the

, and a two-year HYPE token unlock period starting at the end of 2025 could put pressure on liquidity. Analysts expect some short-term turbulence but remain optimistic about Hyperliquid’s future, pointing to a 5–6% yield for token holders during periods of high activity, as noted in the
.

Conclusion: Ushering in a New Chapter for Decentralized Derivatives

Hyperliquid’s remarkable performance in 2025 highlights the impact of robust on-chain liquidity and strong retail demand. With its TVL, OI, and trading volumes surpassing rivals, the platform has become a key player in the DeFi world. However, its future will be shaped by the balance between leverage, liquidity, and leadership changes. For investors, Hyperliquid offers both promise and caution: while its innovations have set new standards for decentralized trading, the inherent risks of high leverage and token price swings remain significant.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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