Hyperliquid HYPE Rebounds 68%: Perpetual DEX Growth Explained

Hyperliquid (HYPE), the token powering one of the fastest-growing perpetual DEX ecosystems, has rebounded 68%, recovering rapidly from market volatility and reclaiming momentum across derivatives markets.

With record-breaking trading volume, deep liquidity, and innovative features powered by HYPE L2, Hyperliquid continues to position itself as a dominant force in decentralized perpetual trading, challenging major players such as dYdX.

This article breaks down the catalysts behind the Hyperliquid surge, examines ecosystem activity, and provides a clear adoption guide for traders following the platform’s extraordinary rise.

Hyperliquid’s Custom Chain and Liquidity Engine

At the core of Hyperliquid’s rise is its own Layer 1 blockchain. Rather than bolting a DEX onto a general-purpose chain, the team built a two-layer structure. 

HyperCore handles order books, trade execution, and staking with near-instant finality and low latency, while HyperEVM, added in early 2025, brings EVM-compatible smart contracts into the same environment. 

Together they give HYPE the kind of throughput—hundreds of thousands of transactions per second in theory—that high-frequency perpetual traders demand.

That infrastructure quickly turned into real usage. By mid-2025, total value locked on the platform had climbed beyond $5 billion, with open interest peaking around $15 billion and weekly trading volumes averaging $47 billion, occasionally spiking to $78 billion. 

The Hyperliquidity Provider pool, Hyperliquid’s core market-making vault, grew from roughly $150 million in TVL at the end of 2024 to over $400 million in early 2025, while still delivering around 11% annualized returns even after a $4.9 million security incident. 

Those numbers are what underpin the Hyperliquid surge, not only the chart patterns.

Read Also: Hyperliquid Recovers 8%: Key Support Levels Explained

Why HYPE Rebounded 68%: The Core Catalysts

HYPE’s sharp recovery is supported by both structural improvements and an ecosystem now driving unprecedented perpetual trading activity.

Hyperliquid Tops the Perp DEX Rankings

Hyperliquid recently recorded:

• $8.06B in daily trading volume
• $6.51B in open interest

These numbers surpass rival perpetual DEXs including Aster, Lighter, and EdgeX. High open interest reflects long-term conviction from active traders—not just rapid turnover.

This milestone strengthens Hyperliquid’s positioning within the decentralized derivatives sector and supports the thesis that Hyperliquid may be the next major challenger in the perp DEX ecosystem.

HIP-3 Custom Markets Fuel Explosive Activity

The HIP-3 upgrade introduced customizable synthetic markets, allowing users to create equity-based perpetuals by staking 500,000 HYPE. Stakers earn 50% of transaction fees generated from their custom markets.

This feature triggered over $500M in synthetic equity volume within a single day:

• XYZ100 Index: $320M
• NVDA: $66M
• GOOGL: $45M
• AAPL, TSLA, MSFT, and PLTR markets showing strong engagement

By letting the community build markets, Hyperliquid expands beyond crypto perpetuals into synthetic equity trading—an area currently dominated by centralized exchanges.

Growth Mode Reduces Fees to Near Zero

During HIP-3 activation, Hyperliquid enabled growth mode, slashing taker fees from 0.045% to 0.0045%–0.009%.

These ultra-low fees:

• attract arbitrage traders
• encourage deeper market-making
• accelerate volume formation

This structural advantage increases Hyperliquid’s competitiveness versus dYdX and traditional CEX futures markets.

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HYPE L2: The Engine Behind Hyperliquid’s Expansion

Hyperliquid runs on HYPE L2, a custom Layer-2 designed specifically for high-speed derivatives execution.

Key features include:

• instant order matching
• low-latency updates
• modular upgrades without disrupting users
• self-contained liquidity (no external bridging required)

This architecture contrasts sharply with dYdX’s Cosmos migration, positioning Hyperliquid as a performance-first alternative with smoother user onboarding.

Read Also: The Comeback Trade of 2025: Hyperliquid Brings Stocks On-Chain

Market Confidence Strengthened by Whales & Treasury Support

Sonnet Merger Enables $1B Treasury Plan

Hyperliquid’s merger with Sonnet BioTherapeutics finalized a $1B digital asset treasury, including daily buybacks of up to $2.5M HYPE.

This helps absorb sell-pressure from the 314M token unlock, stabilizing HYPE’s supply dynamics.

Whale Accumulation & Technical Breakout

HYPE rebounded from a $30 double-bottom formation, reclaiming the $34–$35 range with increasing volume.

Analysts now watch resistance near $37–$38, with potential upside toward $41–$48 if momentum holds.

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How Hyperliquid Dominated Perpetual DEX Volume

Several structural factors contribute to Hyperliquid’s ascent as the world’s top perp DEX:

• synthetic equity markets attract non-crypto traders
• ultra-low fees draw high-frequency and arbitrage strategies
• rising open interest reflects deep capital commitment
• institutional sentiment improving (Arthur Hayes, HYPS Nasdaq listing)

Together, these trends create a multi-layered foundation that supports sustainable long-term growth.

Read Also: How to Staking HYPE and Earn High APY in 2025

Conclusion

Hyperliquid’s 68% rebound is powered by real usage, not hype—driven by its explosive growth in perpetual trading volume, HYPE L2 performance, HIP-3 incentives, and institutional validation. 

As the perpetual DEX landscape evolves, Hyperliquid is rapidly asserting itself as a market leader. 

The next test lies in breaking major technical resistance and sustaining liquidity as new markets and features continue to roll out.

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FAQ

Why did Hyperliquid (HYPE) surge 68%?

The rebound is driven by massive perp DEX volume, whale accumulation, HIP-3 market creation incentives, and a $1B treasury buyback program stabilizing supply.

What is HYPE L2?

HYPE L2 is Hyperliquid’s proprietary Layer-2 execution engine optimized for high-speed, low-cost perpetual derivatives trading.

How does HYPE compare to dYdX?

Hyperliquid offers faster execution, stronger fee buybacks, customizable synthetic markets, and higher open interest—giving it a competitive edge over dYdX in 2025.

What is HIP-3 and why is it important?

HIP-3 allows users to stake HYPE to create synthetic equity markets and earn 50% of trading fees, significantly boosting platform activity.

Is HYPE’s rebound technically strong?

Yes. HYPE broke out from a double-bottom structure and is approaching major resistance near $37–$38. A clean breakout could target $41–$48.