Original Title: Semiannual Report: "Inside Hyperliquid's Growth"

Original Source: GLC

Original Translation: Asher, Odaily Planet Daily

Editor's Note: In the first half of 2025, Hyperliquid continued to maintain its leading position in the decentralized perpetual contract market. The platform's TVL, open interest volume, and trading volume all hit record highs. The HyperEVM ecosystem expanded rapidly, Unit facilitated spot trading implementation, and local applications and Builder Codes accelerated user growth. The HYPE token performed steadily under a unique buyback mechanism and record revenue support. Meanwhile, HIP-3 opened the permission for perpetual market deployment, bringing new profit opportunities to the community. With strategic partners joining and more assets being onboarded, Hyperliquid has tremendous growth potential in the second half of the year, shaping a new landscape for decentralized trading.

Hyperliquid On-chain Metrics

TVL and Inflow

After the launch and airdrop of the HYPE token, there was no user attrition. Instead, Hyperliquid has seen amazing growth since Q4 2024. In particular, the inflow of funds skyrocketed in November, with a daily peak exceeding $50 million, driving TVL from $564 million to over $2 billion, representing a quarterly growth rate of 269%.

Due to this sustained growth, Hyperliquid further solidified its dominant position in the decentralized perpetual contract trading field in the first half of 2025. As of June 30, the platform's TVL had reached $3.5 billion, a 70.8% increase from the beginning of the year's $2.1 billion. During the same period, despite experiencing a $590 million net outflow in March, overall inflows remained strong, averaging a net inflow of $58 million per week.

Open Interest Volume and Trading Volume

After first surpassing $1 billion in Q4 2024 and rising to $3.27 billion by year-end, Hyperliquid's open interest volume grew by approximately 227% in just a few months. In early 2025, this number continued to surge and has now reached $15 billion, a 359% increase from the end of 2024, equivalent to 61% of ByBit, 105% of OKX, and 120% of Bitget.

In Q4 2024, Hyperliquid's weekly trading volume was around $130 billion. By the first half of 2025, this number had significantly increased to an average of $470 billion, reaching a historic high of $780 billion in the week of May 12. At the same time, its market share also expanded, growing from around 56% at the end of 2024 in decentralized perpetual contract trading platforms to over 73% by the end of the first quarter of 2025, further solidifying its industry-leading position.

In terms of user scale, Hyperliquid's user addresses grew from 291,000 in the first half of 2025 to over 518,000, a 78% increase in six months. This growth not only reflects the rapid expansion of the platform's user base but also corresponds to over $530 billion in open interest, demonstrating the activity and depth of the market.

Hyperliquid vs. CEX Data Comparison

In the first half of 2025, Hyperliquid's growth compared to centralized exchanges (CEX) has been particularly remarkable. As of now:

· Hyperliquid's trading volume share has reached 6.1%, an increase of 3.9 percentage points since January of this year.

· Hyperliquid's open interest contract volume share has reached 17.8%, an increase of 12.3 percentage points since January of this year.

Firstly, Hyperliquid has the lowest cost for trading spot and perpetual contracts in the ecosystem while providing deep on-chain liquidity. For some assets, the order book depth is comparable to top CEXs. For example, during the PUMP listing, the platform achieved the deepest market depth, highest trading volume, and tightest bid/ask spread, a first in DEX history.

Secondly, Hyperliquid has become the preferred platform for new coin launches. Since the listing of Trump Coin, the platform has consistently been the first to launch perpetual contracts, attracting users rapidly and strengthening the platform's recognition as the preferred venue for new coin trading. In addition, PUMP was listed in just 12 minutes, raising around $5 billion, making Hyperliquid the first platform to simultaneously list spot and perpetual contracts and provide pre-trading opportunities, validating its ability to attract users and liquidity.

Today, Hyperliquid matches top CEXs in transaction speed, liquidity, and user experience while retaining its decentralized advantages: permissionless access, on-chain transparency, native composability, allowing any asset, position, or trade to integrate directly with smart contracts, dApps, or other protocols on HyperEVM.

HLP: Core Liquidity Engine with Robust Yield

HLP (Hyperliquidity Provider) is the core liquidity engine of Hyperliquid, providing USDC liquidity for order book, market-making, and auto-settlement while integrating various yield strategies to offer users non-directional exposure. HLP TVL saw significant growth by the end of 2024, propelled by the HYPE airdrop, rising from $150 million at the end of November to over $400 million in early 2025, peaking at $512 million in May, maintaining stability in the first half of the year, and ultimately settling at $372 million.

During the same period, HLP net profit increased from $50 million to $68 million, with an average annualized user return of around 11%. Despite the JELLY event, the net profit for Q1 2025 remained at 5.2%, with a decrease of less than 3.5%.

Unit: Key to Hyperliquid's Future

Unit launched on February 14, 2025, as Hyperliquid's asset tokenization layer, supporting native deposits and withdrawals of various assets and directly listing assets on the Hyperliquid spot market through an auction system, initially supporting BTC and later expanding to ETH, SOL, FARTCOIN, PUMP, BONK, and others.

Since its launch, Unit TVL has reached $800 million, second only to Kinetiq; in the first half of the year, the volume of assets traded through Unit exceeded $15 billion. Nevertheless, Hyperliquid's spot trading volume only accounts for 2% of the total trading volume, significantly lower than the 15%-30% ratio of most centralized exchanges, indicating that it is still in the early stages.

HyperEVM On-Chain Metrics

HyperEVM launched in February 2025, a blockchain compatible with EVM built directly on Hyperliquid's infrastructure, supporting the deployment of smart contracts and decentralized applications.

TVL

Despite having less than $50 million TVL at the beginning of February, just two months after mainnet deployment (mid-April), TVL had surpassed $1 billion and reached $2.08 billion on June 30, achieving a doubling in growth.

Active Address Count

In the first half of 2025, HyperEVM's user activity steadily increased, with an average of approximately 33,000 daily active addresses, peaking at over 44,000 during June.

Moreover, transaction volume followed a similar trend, averaging about 208,000 transactions per day, peaking at 315,000 transactions.

In terms of economic performance, applications on HyperEVM generated an average of around $1.927 million in fees per day, with a peak of $4.855 million on May 21, accumulating a total fee revenue of $256.2 million to date.

HYPE Revenue and Buyback

Unlike most DeFi protocols, the Hyperliquid team does not directly take platform fees; all revenue is split between HLP and the Assistance Fund. HLP acts as the community treasury, providing users with LP rewards; the Assistance Fund, denominated in HYPE, serves as a liquidity reserve when needed.

Data from recent months indicates that around 92% of the fees flow to the Assistance Fund, with the remaining 8% allocated to HLP. Through the HYPE buyback program, the Assistance Fund uses revenue to buy back tokens from the spot market to support the HYPE price and directly benefit token holders.

Since the beginning of 2025, Hyperliquid has accumulated a total revenue of $406 million (over $810 million annualized), becoming one of the most profitable protocols in the crypto industry, trailing only Tether and Circle. Fee revenue in the first quarter saw significant growth, rising from around $1 million per day to an average of $3 million, with peaks exceeding $5 million.

Furthermore, the Assistance Fund can buy back approximately 13% of the HYPE supply annually. With HIP-3 and builder codes (represented by Phantom) going live, Hyperliquid fees will increase further, reinforcing the buyback mechanism and supporting token value (as of the time of writing this article, based on the last 30 days' data, the annualized revenue is approximately $1 billion, resulting in a P/E ratio of about 15 based on circulating supply).

Hyperliquid H1 Key Events

In January 2025, Hyperliquid expanded its validators to 27 and launched the TRUMP perpetual contract, achieving over $21 billion in trading volume over two consecutive days.

In February 2025, Unit was launched, enabling $4 billion in native asset deposits, reaching $8.4 billion in spot trading volume; HyperEVM was activated, reaching a TVL of $2 billion.

In March 2025, the Jelly Incident resulted in a $12 million loss for HLP, which was reimbursed to users.

In May 2025, the HIP-3 testnet allowed the community to deploy new perpetual markets, introduced Staking Tiers, and added the stablecoins USDe and USDT0.

In June 2025, several publicly traded companies added HYPE to their corporate treasuries, Hyperliquid's annual revenue exceeded $800 million, with 97% used for HYPE buybacks.

In July 2025, CoreWriter was launched, enabling bidirectional writability between HyperCore and HyperEVM, Builder Codes integrated Phantom Perps, attracting around 20,000 new users with an expected annual revenue of $15 million to $30 million.

Summary

In the first half of 2025, Hyperliquid continued to strengthen its position in the decentralized perpetual contract market, with outstanding on-chain metrics, accelerated adoption of HyperEVM, and rapid expansion of the native application ecosystem. The HYPE token demonstrated robust performance supported by a unique buyback mechanism and record revenue, showcasing the sustainability of the protocol's economic model.

Looking more broadly, Hyperliquid has expanded its growth opportunities by enhancing liquidity and infrastructure advantages while driving the development of HIP-3, CoreWriter, and Builder Codes. With strategic partnerships like Phantom and the rise of HyperEVM's native protocol, the network has solid growth potential for the second half of the year.

Notably, HIP-3 is a key driver: any user holding 1 million HYPE can deploy perpetual contracts and receive up to 50% of trading fee revenue without infrastructure costs, as Hyperliquid offers full support. The integration of Phantom has already shown initial results, expected to bring 2%-4% annualized cash flow growth, with further potential amplification if more wallets or front ends follow suit.

As the U.S. SEC unveils its new on-chain asset roadmap, Hyperliquid is poised to support more asset types, unlocking additional growth opportunities.

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