Hyperliquid, a decentralized perpetuals platform built on a custom layer 1, stunned the DeFi world by processing $330 billion in trading volume in July 2025, briefly overtaking Robinhood.
What makes this even more remarkable is that this success comes from a slim, self-funded team of only 11 people, showcasing a unique approach to decentralized exchange operations.
The platform’s architecture consists of two interconnected components: HyperCore, which manages the onchain order book, margining, liquidations, and clearing; and HyperEVM, a general-purpose smart contract layer directly interacting with exchange state. Both components are secured by HyperBFT, a proof-of-stake consensus that enforces strict transaction ordering without offchain coordination.
Hyperliquid achieves near centralized exchange speed, boasting a median trade latency of 0.2 seconds and handling up to 200,000 transactions per second. This was made possible by a split-chain design that supports CEX-level speed while maintaining full custody and onchain execution.
The growth in July 2025 was fueled by a record $319 billion in perpetual trading volume, complemented by spot trading, taking the total to over $330 billion. This figure not only marked a 34% increase over the previous month but also demonstrated sustained high-frequency activity rather than temporary spikes.
Hyperliquid’s operating model emphasizes a lean, tightly coordinated core team that focuses on speed and cultural cohesion instead of rapid expansion. Proudly self-funded, the project avoids reliance on venture capital, aligning ownership with users and focusing on technology and community growth.
One illustrative example of the team’s commitment was their swift reimbursement of $1.99 million to affected traders following a 37-minute API outage in July, exemplifying their ‘ship, fix, own it’ philosophy.
The platform’s financial mechanisms include the Hyperliquidity Provider (HLP) vault, an open, protocol-managed vault for market-making and liquidations that distributes profits and fees among contributors, diminishing the need for private market-maker arrangements.
Additionally, the Assistance Fund collects 93% of protocol fees to conduct fee buybacks and token burns, aligning incentives between traders and token holders in a self-reinforcing cycle that supports liquidity and price stability.
Funding for perpetual contracts is peer-to-peer without protocol take, combining fixed interest rates and variable premiums sourced from centralized exchange price oracles to maintain alignment between perpetual and spot prices.
Community engagement plays a key role. The HYPE token was distributed via a large genesis airdrop to over 90,000 early participants, representing 31% of total supply. Integration with Phantom Wallet further accelerated adoption by enabling direct in-app trading, contributing billions in trading volume and thousands of new users.
Despite its success, Hyperliquid faces challenges such as ensuring validator decentralization, managing concentration risks due to its dominant market share, and addressing operational risks like outages and governance transparency.
Looking ahead, the platform continues to focus on expanding validator participation, open-sourcing code, enhancing infrastructure, and fostering third-party application development around its innovative HyperEVM layer.
In summary, Hyperliquid’s explosive growth is attributable to its unique execution-first chain design, incentive mechanisms that promote liquidity, a lean yet effective team, and strategic distribution partnerships. These elements combined have propelled it to the forefront of DeFi perpetual exchanges.
Readers should note that this information does not constitute investment advice. Trading cryptocurrencies involves risk and due diligence is essential.
