Hyperliquid has reached record open interest of $11 billion, yet the platform faces declining quarterly revenue as fee-sharing programs shift profits to external market builders and developers.

Key Points

• Hyperliquid’s gross revenue has fallen for four consecutive quarters, dropping 43% from its 2025 peak to approximately $202 million in the second quarter of 2026.
• Real-world asset perpetuals, led by Trade.xyz, now account for roughly half of the platform's total trading volume and over 50% of weekly activity.
• The protocol’s fee-sharing model under HIP-3 has increased pass-through costs to 18% of gross revenue, significantly reducing the earnings available for HYPE token buybacks.
• HYPE token value faces downward pressure from institutional selling, large monthly supply unlocks, and increased regulatory scrutiny from authorities in Singapore and the United Kingdom.
• Competition is intensifying as platforms like Robinhood Chain capture significant decentralized trading volume, challenging Hyperliquid’s dominance in the speculative asset market.

Why it Matters

Hyperliquid’s transition toward an infrastructure-heavy model allows it to scale volume through third-party developers, but this strategy creates a direct conflict with the profitability of its native HYPE token. As the platform captures a smaller share of trading fees, the sustainability of its buyback-driven token economics remains uncertain amid growing market competition and regulatory headwinds.