Global Sustainable Perp DEX Market Overview and Industry Transformation

Decentralized perpetual trading markets are experiencing an unprecedented surge in growth and a fundamental reshaping of competitive dynamics. As of September 2025, global perp DEX daily volume has surpassed $52 billion, representing a 530% increase year-to-date, with cumulative monthly volume reaching $13 trillion. This explosive growth is driven by technological breakthroughs, rising demand for decentralized financial products, and increasing regulatory pressure on centralized exchanges. The sector now accounts for approximately 26% of the total crypto derivatives market, marking a qualitative leap from the single-digit share it held in 2024.

Perp DEX Total Volume Trends https://defillama.com/perps

The rapid market fragmentation is redefining the competitive landscape. Traditional order book models (e.g., dYdX, Hyperliquid) continue to dominate professional trading through precise price discovery and deep liquidity, while AMM-based platforms (e.g., GMX, Gains Network) attract retail users with instant liquidity and simplified operations. Emerging hybrid models (e.g., Jupiter Perps) aim to combine both advantages by enabling seamless switching between order books and AMMs via keeper systems in high-speed environments. Data indicates that order book models are gaining greater market share, with Hyperliquid leveraging its CLOB architecture to process $2.76 trillion in cumulative volume.

The Rise of Aster DEX and Market Disruption

The protocol Aster, formed by the merger of APX Finance and Astherus, has achieved a meteoric rise from zero to top-tier status within weeks, powered by a multi-chain aggregation strategy, YZi Labs integration, and crucially, support from CZ. On its token launch day (September 17), it recorded a 1,650% price surge, generated $371 million in first-day trading volume, and attracted 330,000 new wallet addresses—clear evidence of its exceptional market acquisition capability.

Aster’s innovation centers on user experience enhancement. Its Simple mode offers up to 1,001x leverage, far exceeding Hyperliquid’s 40–50x, presenting immense risk but strong appeal to high-return-seeking speculators. The hidden order feature draws inspiration from traditional finance's dark pool concept, effectively shielding large trades from MEV attacks. The integrated yield functionality allows users to use interest-bearing assets like asBNB as margin, earning a baseline 5–7% return while trading—pushing DeFi composability to new heights.

From a data standpoint, Aster’s TVL surged from $370 million on September 14 to $1.735 billion, a 328% increase, with BNB Chain contributing 80% of the capital. Daily volume repeatedly exceeded $20 billion, briefly surpassing Hyperliquid to become the world’s largest perp DEX, generating $7.12 million in 24-hour fees. More significantly, Aster accumulated $19.383 billion in cumulative perpetual trading volume within months—though still far below Hyperliquid’s $2.76 trillion—its growth trajectory is astonishing.

In community discussions, trader preferences show clear divergence. Professional traders favor Hyperliquid, citing "one-block confirmation" and deep liquidity as essential for institutional-grade trading. Cross-chain users and newcomers lean toward Aster, whose no-bridge multi-chain support and CEX-like UX dramatically lower entry barriers.

Hyperliquid: Technological Leader Under Market Pressure

As a pioneer in the perp DEX space, Hyperliquid redefined on-chain derivatives trading through its innovative HyperCore architecture. HyperCore achieves a processing capacity of 200,000 orders per second with a latency of just 0.2 seconds—outperforming many centralized platforms. With $2.765 trillion in cumulative perpetual volume, $13.35 billion in open interest, and $15.6 billion in 24-hour volume, these metrics underscore the success of its technical design and user trust.

Yet Hyperliquid faces mounting challenges in market share erosion. Its dominance in the perp DEX market has declined from 71% in May 2025 and 80% in August to just 38% today—a shift largely driven by the rapid ascent of emerging competitors and the success of multi-chain strategies. Notably, Hyperliquid has been repeatedly overtaken by Aster DEX in both daily volume and fee revenue—once unthinkable developments.

Perpdex Volume Statistics perpetualpulse.xyz

Despite these pressures, Hyperliquid retains significant strengths. It boasts the deepest liquidity, with BTC/ETH spreads as low as 0.1–0.2 basis points; the most stable technical architecture, offering unparalleled certainty with one-block confirmation; and the most mature ecosystem, hosting over 100 projects building a comprehensive DeFi infrastructure. Crucially, its deflationary token model allocates 99% of protocol revenue to HYPE buybacks and burns, with annual revenue of $20.1 billion providing robust token value support.

An analysis of user quality reveals higher user value on Hyperliquid. Among its 825,000 daily active addresses, monthly active users reach 3.651 million, and its OI/Volume ratio hits 287%—far above industry averages. This suggests a user base primarily driven by genuine risk hedging rather than short-term speculation. In contrast, Aster’s ratio stands at just 12%, indicating more short-term arbitrage behavior despite higher trading volume.

Facing competitive pressure, Hyperliquid is actively adjusting its strategy. The upcoming HIP-3 (Permissionless Perpetual Markets) will allow anyone to deploy custom perpetual contracts—potentially unlocking innovations such as RWA perpetuals and AI compute futures—reinvigorating ecosystem vitality. The launch of USDH, a native stablecoin, will further strengthen its financial infrastructure, expected to manage $5.5 billion in assets, with 95% of yield directed toward HYPE buybacks, significantly enhancing token value proposition.

In this intense competitive environment, Hyperliquid’s true moat is not merely technology—it’s the complete ecosystem built around its core protocol. From a pure perpetual exchange to a full-stack DeFi ecosystem with over 100 projects, Hyperliquid has evolved into a self-contained financial infrastructure. This ecosystem spans infrastructure, DeFi protocols, and application layers, with each component contributing to network value accumulation and user stickiness.

Given this context, this article provides a deep dive into the core projects and innovative applications within the Hyperliquid ecosystem, exploring how these initiatives are building sustainable competitive advantages amid fierce market competition and collectively shaping the future of decentralized derivatives trading.

Deep Dive into Core Ecosystem Projects of Hyperliquid

1. Kinetiq – Pillar of the Liquidity Staking Ecosystem (TVL: $1.757B)

Kinetiq holds an unassailable position within the Hyperliquid ecosystem, with $1.757 billion in TVL accounting for approximately 78% of the entire ecosystem’s capital—making it the central hub for capital flow. Functioning as the ecosystem’s “Jito,” Kinetiq redefines validator delegation through its innovative StakeHub algorithm, achieving unprecedented efficiency and yield optimization.

The core of the StakeHub algorithm lies in its multi-dimensional scoring system. The system continuously evaluates over 100 active validators using weighted criteria: reliability (40%), security (25%), economic performance (15%), governance participation (10%), and operational history (10%). By dynamically adjusting capital allocation based on real-time performance and predictive stability modeling via machine learning, the algorithm ensures funds are consistently directed to the highest-quality validators.

Kinetiq Node Performance https://kinetiq.xyz/validators

The protocol’s reward structure is exceptionally rich and competitively positioned. Base PoS rewards offer ~2.3% annual yield, already top-tier among LST projects. StakeHub optimization adds 0.2–0.5% incremental yield by avoiding underperforming validators. MEV revenue contributes ~1% annually via Hyperliquid’s MEV capture mechanism. Most compellingly, integrations with other DeFi protocols provide variable bonuses of 6–8%, pushing total yields to 10–12%—highly competitive in today’s DeFi landscape.

User experience is maximally simplified. Users stake HYPE to receive kHYPE tokens with a slight 0.996:1 premium, reflecting market appreciation for liquid staking tokens and confidence in protocol security. Withdrawal mechanics include a 7-day safety delay and a 0.1% fee, balancing network security with reasonable exit flexibility.

Kinetiq’s TVL exploded from $458 million in July to $1.81 billion today—an increase of over 300% in two months—driven primarily by Pendle’s integration effect, which created additional liquidity demand and yield strategies through PT/YT tokenization.

Kinetiq TVL Growth https://defillama.com/protocol/tvl/kinetiq

The upcoming $KNTQ governance token will be a key tool for decentralization and long-term value creation. Approximately 30–50% of supply is expected to be distributed via airdrop to the community, prioritizing token holders, early users, and kHYPE stakers. $KNTQ’s core functions include protocol upgrade voting, MEV routing strategy decisions, and permission to plan HIP-3 markets—decentralizing governance and boosting community engagement.

Interaction Method: Users stake HYPE via kinetiq.xyz to receive kHYPE, supporting instant minting and a 7-day unlock period. The protocol also features a kPoints loyalty system, distributing weekly points in preparation for the $KNTQ airdrop, earned through staking amount, duration, and other factors.

2. Based – Mobile Super App and Ecosystem Gateway

Based, the highest-revenue Builder app on Hyperliquid, generates ~$90,300 in 24-hour revenue, ranking first among all third-party apps. Cumulative perpetual volume exceeds $16.699 billion, with $321 million in 24-hour perpetual volume—handling ~7% of Hyperliquid’s total volume—highlighting its high-net-worth user base and deep engagement. Its revenue model operates under Hyperliquid’s Builder fee-sharing framework, earning up to 0.1% on perpetual trades and 1% on spot trades, with most revenue returned via affiliate rebates, creating a sustainable win-win loop across users, platform, and Based. Seven-day revenue: $2.22 million; 30-day revenue: $6.71 million—proof of a robust business model and critical role in ecosystem revenue generation.

Based Trading Interface https://www.basedapp.io/

Based’s tokenomics reflects deep understanding of user behavior and innovative incentive design. $PUP serves as an XP multiplier tool, having completed its airdrop on August 22, 2025, with a total supply of 100 million. 5% allocated to early users and community contributors. $PUP provides 25–60% XP boost, allowing holders to earn more rewards in trading, spending, and other activities. $BASED, the primary governance token, is distributed based on total user XP, with a snapshot date of September 20, 2025: 0.06 XP per $1 perpetual trade volume, 0.30 XP per $1 spot trade volume (5x incentive), and 4–6 XP per $1 Visa spend (converted to XP at TGE).

This dual-token model seamlessly combines short-term incentives ($PUP) with long-term governance ($BASED), turning $PUP holders into leveraged participants in the $BASED airdrop—deepening loyalty and ecosystem stickiness. Community-wise, $PUP’s circulating market cap is ~$5 million, with price stable near $0.05, signaling solid utility demand. $BASED’s expected supply is 1 billion, with 40% allocated to community, to be fairly distributed via the XP system to active users.

Interaction Method: Users can download the mobile app or access the web terminal via based.markets, register with email, and support one-click deposit across multiple chains. The interface resembles traditional finance apps, offering spot and perpetual trading. Users may apply for a Visa debit card (existing users should note the November deactivation schedule) for fiat spending. The XP system displays real-time progress, and $PUP holders can activate multipliers in their wallets to boost reward efficiency.

3. Pendle – Revenue Tokenization Protocol Giant

Pendle’s successful deployment on HyperEVM marks the maturation of revenue tokenization within the Hyperliquid ecosystem and signifies a new height in DeFi product complexity and innovation. The protocol separates yield-bearing assets like kHYPE into PT (Principal Tokens) and YT (Yield Tokens), offering investors precise tools for fixed-income investing and yield speculation. Within months, Pendle’s TVL on HyperEVM grew from zero to $12.3 billion, with a 30-day increase of 76.27%.

Pendle TVL Distribution Across Chains https://defillama.com/protocol/tvl/pendle

The synergy between Pendle and Kinetiq is the key to Pendle’s rapid success in the Hyperliquid ecosystem. This collaboration extends beyond product complementarity to create novel value capture mechanisms. By tokenizing kHYPE into PT and YT, Pendle offers diversified yield strategies for liquid staking users while creating new pathways to earn Kinetiq points. YT-kHYPE holders receive full Kinetiq point rewards without exposure to principal volatility, while PT-kHYPE holders enjoy the certainty of fixed income, ideal for constructing stable yield strategies.

Pendle’s product suite continues expanding, demonstrating its strategic intent to deeply integrate into the Hyperliquid ecosystem. Beyond mainstream kHYPE markets, the protocol now supports revenue tokenization of native ecosystem yield-bearing assets like feUSD, hwHLP, and beHYPE. Each new asset introduces fresh yield strategy combinations and arbitrage opportunities, further driving ecosystem activity and composability. With the emergence of more LSTs and yield-generating assets, Pendle provides standardized yield separation tools, serving as a vital bridge between different protocols.

Interaction Method: Users access the protocol via app.pendle.finance, select the Hyperliquid network, and can either split their yield-bearing assets (like kHYPE) into PT/YT or trade these tokenized yield products directly on secondary markets. The protocol provides intuitive yield curves and maturity dates to aid investment decisions.

Pendle’s Yield Tokens on HyperrEVM https://app.pendle.finance/trade/markets?chains=hyperevm

4. HyperLend – Core Lending Infrastructure

As Hyperliquid’s “credit bank,” HyperLend plays a pivotal role in DeFi infrastructure, providing core support for liquidity circulation and capital efficiency. The protocol forks Aave V3 but undergoes deep optimization and innovation tailored to Hyperliquid’s high-performance environment and unique asset characteristics. Its most significant technical breakthrough is the HyperLoop feature—a revolutionary mechanism enabling one-click leveraged loops via flash loans, offering advanced users unprecedented capital efficiency with minimal friction.

HyperLend’s architectural design exemplifies a delicate balance between risk management and capital efficiency. The protocol employs a dual-pool architecture: a unified liquidity pool handles efficient lending for core assets like HYPE, kHYPE, and USDC via shared liquidity, drastically reducing slippage and improving capital utilization; an isolated risk pool manages volatile or high-risk assets with fully customizable risk parameters, ensuring that a single asset failure won’t destabilize the entire system.

HyperLoop’s technical implementation showcases the pinnacle of DeFi composability and enhanced user experience. Through a simple, intuitive interface, the protocol automatically executes complex atomic sequences behind the scenes: first, borrowing the target debt asset via flash loan; then, converting it via the embedded DEX aggregator into the desired yield asset; supplying that asset as collateral to the appropriate pool; borrowing more debt against the new collateral; and finally, repaying the initial flash loan—all executed atomically within a single block. This enables users to achieve 3–5x leverage effortlessly, eliminating the complexity, time cost, and gas expenses of manual multi-step operations.

HyperLoop One-Click Loop Interface https://app.hyperlend.finance/hyperloop

Asset composition and operational efficiency data reveal a healthy, well-adapted growth trajectory. Total TVL of $524 million is composed of wstHYPE ($254M, 48%) and native HYPE ($206M, 39%), clearly reflecting the importance of LSTs and strong demand for native token liquidity. Current total borrowings stand at $267 million, with an overall utilization rate of 48%—within the healthy range for DeFi lending protocols, ensuring sufficient liquidity for withdrawals while optimizing capital returns.

HyperLend Protocol Scale https://hyperlend.blockanalitica.com/

HyperLend’s revenue model demonstrates clear, sustainable value creation. Annual revenue reaches $15.89 million, derived from diversified and stable sources: lending interest spread, liquidation fees, and flash loan transaction fees. Notably, its flash loan fee is set at 0.04%, significantly lower than Aave’s standard 0.09%, a competitive pricing strategy that enhances cost efficiency and attracts high-frequency traders and arbitrageurs. The protocol also features a robust points system, running for 22 consecutive weeks, with 3.5% of supply reserved for Aave DAO as part of its long-term distribution plan.

Interaction Method: Users connect their wallets via hyperlend.finance to deposit for interest, borrow, or utilize the HyperLoop one-click leveraged function. The interface is clean and intuitive, displaying real-time interest rates and risk indicators to support informed lending decisions.

5. Hyperbeat – DeFi Super App (TVL: $387M)

Hyperbeat positions itself as a one-stop DeFi hub, offering a comprehensive suite of services including staking, lending, and yield optimization. The protocol recently raised $5.2 million in seed funding led by Electric Capital, with participation from Coinbase Ventures, Chapter One, DCF God, and other prominent institutions—underscoring institutional confidence in its business model and technical team.

Hyperbeat’s product matrix embodies deep ecosystem integration. The beHYPE liquid staking module features a slashing-resistant model with governance participation; Morphobeat lending markets are optimized via the Morpho protocol, specifically targeting yield-bearing assets like LSTs; yield vaults employ Meta-Yield strategies for automated yield optimization across multiple protocols. Its cross-chain capabilities enable deployments on Arbitrum and other chains, with $28.92 million in TVL currently on Arbitrum, broadening its user base and asset management scale.

Hyperbeat’s innovation lies primarily in its automated yield optimization strategy. The protocol uses smart contracts to monitor yield changes across DeFi protocols in real time, dynamically reallocating capital to maximize returns. This “set-and-forget” UX drastically lowers the technical barrier to DeFi participation, especially appealing to users seeking passive yield without constant monitoring. The Meta-Yield strategy also includes risk hedging—diversifying investments across multiple protocols to reduce single-point failure risk while capturing arbitrage opportunities to enhance overall returns.

Interaction Method: Users access the multi-product dashboard via hyperbeat.org, enabling one-click DeFi actions including staking, lending, and yield farming. The interface emphasizes usability, featuring yield projections and risk warnings. The Hearts loyalty system is nearing completion, with less than 12% of remaining points to distribute—totaling 51 million Hearts—preparing for the upcoming $BEAT token airdrop. The system encourages cross-product engagement, rewarding users with points for staking, lending, and yield farming across multiple modules.

6. USDH – Native Stablecoin Infrastructure

USDH, the upcoming native stablecoin of Hyperliquid, carries the mission of completing the ecosystem’s financial infrastructure. Native Markets won the community vote on September 14, 2025, securing the right to issue USDH. Its launch will fill the gap in native stablecoin availability within the Hyperliquid ecosystem, providing a more complete and autonomous financial foundation.

USDH’s technical architecture reflects deep consideration for compliance and scalability. The stablecoin will be backed by U.S. Treasuries through traditional financial institutions like Stripe Bridge and BlackRock, ensuring ample asset backing and regulatory compliance. More importantly, USDH will achieve dual compatibility with HyperEVM ERC-20 and HyperCore HIP-1, enabling seamless movement throughout the Hyperliquid ecosystem—usable as collateral, liquidity, and margin across DeFi protocols and perpetual trading, achieving true native integration.

Launch is expected in Q4 2025, pending completion of technical development and regulatory approvals. As a foundational infrastructure, USDH’s successful rollout will have profound implications for the entire Hyperliquid ecosystem—enhancing user experience, capital efficiency, and crucially, strengthening the ecosystem’s independence and sustainability. Especially in competition with external stablecoins like USDC, USDH’s native advantages and yield-sharing mechanisms will provide unique competitive edge.

Ecosystem Data Landscape and Future Outlook

Hyperliquid’s ecosystem exhibits strong growth momentum and healthy development. Total TVL reaches $6.535 billion, with $2.37 billion locked in DeFi protocols and $4.165 billion in perpetual open interest. 30-day perpetual volume hit $65.16 billion. User data reflects high quality: 308,000 monthly active users, average position size of $162,000, and a 30-day retention rate of 67%—significantly outperforming peer platforms.

The ecosystem’s greatest strength lies in deep protocol synergies. Integration between Kinetiq and Pendle, capital efficiency amplification via HyperLend, internal circulation via Felix feUSD, and traffic inflow from Based form a powerful network effect. Yet, the decline in market share cannot be ignored. Hyperliquid’s perp DEX market share dropped from 48.2% in August to 38.1% in September, mainly due to competitors employing multi-chain strategies and aggressive incentives.

The launch of HIP-3 (Permissionless Perpetual Markets) will be a pivotal turning point, enabling anyone to deploy custom perpetual contracts—expected to bring innovations like RWA perpetuals and AI compute futures. USDH is projected to manage $5.5 billion in assets, with 95% of yield directed to HYPE buybacks, generating $15–22 million in annual yield—significantly bolstering token value support.

HYPE’s value capture mechanism is well-designed: 99% of protocol revenue goes to buybacks and burns, with current annual buyback rate at ~8.7%. However, the linear release starting November 29 will increase supply by 71%, requiring strong fundamentals to offset the inflationary pressure.

Hyperliquid’s ecosystem stands at a critical juncture. Success hinges on the convergence of technological innovation and user experience, the balance between ecosystem openness and quality control, and the coordination of technical focus with diverse user needs. HIP-3 and USDH launches will serve as key tests of its adaptability.

For investors, the ecosystem offers diverse opportunities—from stable LST protocols to high-risk early-stage projects. The key is understanding each protocol’s business model and risk profile, aligning strategies with personal risk tolerance. Hyperliquid’s value isn’t just in individual project success—it’s in the formation of a powerful network effect. In this era of opportunity and challenge, its ability to innovate continuously and deliver real user value will determine its long-term trajectory.

Article submitted by contributor, not reflecting ChainThink's views.