Hyperliquid, a brand new crypto alternate specializing in leveraged memecoin buying and selling, has been capturing market share from its well-established world rivals like Binance. Benefiting from two specific options, particularly copy-trading and leveraged buying and selling contests, it has attracted disproportionate media consideration.
At first look, sure numbers sound spectacular. For instance, over the previous three months, Hyperliquid’s perpetual futures commerce quantity has grown 74% from $1.9 billion to $3.3 billion. That outperforms even market chief Binance, which grew 42% in the identical class throughout the identical time interval.
Utilizing related metrics that emphasize percentages fairly than absolute greenback quantities, some folks have began to think about Hyperliquid a reputable competitor to Binance.
Nevertheless, on nearer inspection, the a lot bigger Binance captured extra absolute market share amongst perpetual futures merchants. Throughout these three months, Binance gained $15.9 billion, or 11 instances greater than Hyperliquid’s $1.4 billion achieve.
Use the correct numbers and Hyperliquid can tackle Binance
Most charts that present Hyperliquid rising impressively relative to Binance make two elementary errors.
First, as talked about above, these charts typically emphasize impressive-looking percentages fairly than the much more necessary greenback quantities.
Second, many creators backdate their charts to early 2024 — earlier than Hyperliquid introduced its airdrop and even operated a lot of the alternate options which might be related to a comparability with Binance’s operations.
For instance, one Dune dashboard units the beginning date for its three charts previous to October 2024. Comically, all of its charts begin a minimum of a full month earlier than Hyperliquid’s HYPE airdrop that gave the venture its first billion-dollar valuation and kickstarted its present options in earnest.
Equally, somebody took the chance to put up six impressive-looking charts to go viral on social media. Disingenuously, these charts show Hyperliquid metrics rising up and to the correct.
Their creator manufactured that pattern, in fact, by setting the beginning date to Could 2024 — once more, lengthy earlier than Hyperliquid launched its governance token and its hottest alternate options.
How Hyperliquid truly compares to Binance
In actuality, primarily based on most metrics, Hyperliquid is nowhere near Binance. For instance, it claims fewer than 410,000 whole customers and admits that its lively customers are a subset of that determine. Binance, in distinction, claims 250 million registered customers — 61,000% bigger than Hyperliquid.
Hyperliquid defaults its stats overview web site to a timeframe beginning on June 14, 2023. This conveniently ensures that its exercise charts present up-and-to-the-right development when somebody first visits the webpage.
Whole quantity, liquidations, non-hyper liquidity supplier quantity, new customers, and variety of trades are additionally displayed cumulatively in order that these strains can’t, by definition, lower.
Nonetheless, that Hyperliquid has grown to even a single digit share of crypto alternate volumes in any world class is spectacular. Since its debut in late November final yr, Hyperliquid at present ranks among the many prime 20 derivatives exchanges on the planet.
Evaluating total derivatives buying and selling exercise, Hyperliquid additionally boasts an honest quantity of quantity. It processed about 6% of the trades versus Binance inside the final 24 hours: $3.4 billion in comparison with $54 billion, respectively.
Its spot buying and selling exercise stays insignificant, nonetheless: $58 million versus Binance’s $8.9 billion.
