- The analysis published by DWF Ventures as an X thread coincides with Hyperliquid’s perps market share reaching an all-time high.
DWF Ventures, the venture arm of web3 investor and market maker DWF Labs, has published an analysis of Hyperliquid and HyperEVM. It charts the rise of Hyperliquid’s PerpDEX, which has become a major competitor to CEXs that have traditionally dominated futures volumes.
The analysis published by DWF Ventures as an X thread coincides with Hyperliquid’s perps market share reaching an all-time high. The web3 investment firm starts by reprising the early history of Hyperliquid, which launched as an Arbitrum-based PerpDEX before migrating to HyperEVM and airdropping the $HYPE token.
One of the reasons behind Hyperliquid’s success, DWF Ventures notes, was its absence of early-stage VC funding. Instead, the PerpDEX focused on refining its UX and organically growing its community, whose loyalty was rewarded with 31% of $HYPE’s total supply being allocated to early users.
Since moving to its own Layer 1 in the form of HyperEVM, Hyperliquid has gone from strength to strength. DWF Ventures notes that in July the network set a monthly record for perps volume and revenue, recording $320B and $87M respectively. It was also responsible for 35% of all blockchain revenue in the same month, the largest share by a single chain.
Other data points highlighted by DWF Ventures include a rise in Hyperliquid’s aggregate market share vs CEXs, which has reached a high of 6.1% this month, with its market share vs Bybit and OKX both at all-time highs.
The tokenomics underpinning $HYPE are then examined, whose design results in 97% of all protocol trading fees being used to buy back the native token. To date, close to $1.3B of $HYPE has been market bought by the Hyperliquid Assistance Fund. Other areas examined in DWF’s report include the progress of governance proposals, the most radical of which supports the permissionless creation of perps markets without requiring centralized approval.
The report concludes: “Hyperliquid’s growth has been driven by factors including a successful airdrop, a strong and organic community, and of course, its effective product. As the platform’s market share continues to trend upwards, it is poised to capture further growth, translating to increased buybacks and buy pressure over time.”
About DWF Labs
DWF Labs is the new generation Web3 investor and market maker, one of the world’s largest high-frequency cryptocurrency trading entities, which trades spot and derivatives markets on over 60 top exchanges.
Learn more: https://www.dwf-labs.com/
VP of Communications
Lynn Chia
DWF Labs
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