DeFi analyst Patrick Scott presents a compelling case that Hyperliquid continues to be the premier investment opportunity among decentralized perpetual futures exchanges, even as competitor Aster experiences massive growth.
Perp DEX Market Transformation
Perpetual futures (perps) - cryptocurrency derivatives enabling unlimited trading without expiration dates - have seen their decentralized platforms (perp DEXes) gain significant traction as traders migrate from centralized exchanges like Binance.
Scott's research reveals perp DEXes have dramatically increased their market presence, growing from under 2% of CEX perpetual volume in 2022 to exceeding 20% recently. Hyperliquid, powered by its HYPE token, has been instrumental in this expansion.
Market Share Shifts
Despite overall growth, Hyperliquid's portion of perp DEX volume declined from 45% to 8% in recent weeks, while Binance-connected Aster exploded to over $270 billion in weekly trading. Emerging platforms like Lighter and edgeX also demonstrated triple-digit percentage increases.
Hyperliquid's Competitive Advantages
Scott emphasizes Hyperliquid's strong fundamentals differentiate it from competitors. The exchange maintains robust revenue generation with attractive valuation multiples and demonstrates user loyalty through substantial open interest metrics.
"While volume and revenue track activity, open interest measures liquidity depth, which proves more sustainable," Scott explained, noting Hyperliquid dominates with approximately 62% of perp DEX open interest.
Strategic Expansion Initiatives
Beyond core trading, Scott highlights Hyperliquid's growth vectors including the HyperEVM network - already supporting 100+ protocols with $2 billion TVL - and USDH stablecoin, backed by reserves managed through BlackRock and Superstate.
The HIP-3 proposal could further strengthen HYPE token economics by enabling market creation through significant token staking, establishing what Scott characterizes as a "supply sink" mechanism.
Scott acknowledges potential risks including material declines in open interest or revenue, or USDH liquidity challenges within the next year. However, he maintains Hyperliquid's positioning surpasses competitors relying heavily on incentive programs.