Hyperliquid Just Passed GMX in Open Interest – Here’s Why

Open interest in decentralized perpetuals trading has shifted dramatically, with Hyperliquid now surpassing GMX. This milestone signals a deeper shift in where traders place liquidity, trust, and long-term confidence within the on-chain derivatives sector.

While the numbers highlight Hyperliquid’s rapid rise, the reasons behind this surge reveal broader trends in DeFi trading, user behavior, and protocol design that are reshaping the competitive landscape.

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Hyperliquid Passing GMX in Open Interest

Recent market data shows Hyperliquid reaching more than 10.6 billion dollars in open interest. This surge represents a dramatic increase in outstanding perpetual contracts and signals heavy leverage, strong demand, and significant trader migration to the platform.

Meanwhile, several analytics platforms and commentary sources show GMX losing ground. Some reports note that GMX’s open interest and trading volume have fallen to under ten million dollars at times, indicating a steep decline in market engagement.

Hyperliquid’s strong derivatives flow now accounts for a dominant share of the on-chain perpetuals market, reflecting a decisive shift in trader preferences.

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Why Hyperliquid Is Gaining Market Share

Multiple structural and behavioral factors explain why Hyperliquid has pulled ahead of GMX.

On-chain performance and architecture

Hyperliquid built a fully on-chain order book system running on its own high-throughput Layer 1 chain. This design enables:

• Low latency execution
• More efficient capital usage
• CEX-like performance while remaining non-custodial

GMX relies on a liquidity pool model using oracle pricing, which historically offered simplicity but struggles with slippage, slower execution, and reduced competitiveness against newer platforms.

Movement of liquidity and trader demand

Traders seeking deep liquidity and fast execution have increasingly shifted toward platforms capable of supporting large positions. Hyperliquid’s growth has encouraged whales and high-frequency users to migrate, boosting the platform’s open interest and reinforcing its liquidity advantages.

At the same time, GMX’s pool-based model has faced pressure from declining engagement, making it less attractive to leveraged traders who prioritize speed and execution quality.

Incentives and token dynamics

Hyperliquid’s ecosystem includes incentives tied to trading fees and revenue mechanisms. The HYPE token benefits from buy-back or burn-style structures, helping amplify market interest.

Incentive-driven growth often accelerates user participation, deepens liquidity, and reinforces network effects that attract even more traders.

Read more: 

Hyperliquid HYPE Rebounds 68%: Perpetual DEX Growth Explained

Hyperliquid Recovers 8%: Key Support Levels Explained

Hyperliquid Guide, Latest News & Market Insights 2025

Risks and Caveats Behind Hyperliquid’s Surge

Open interest growth is not inherently positive without context. Several risks remain important for traders and analysts to consider.

• High open interest often reflects significant leverage, which may increase systemic liquidation risk
• Rapid growth may attract short-term speculation rather than long-term users
• Some analyses suggest Hyperliquid’s market share could fluctuate, especially as competitors adapt
• Loss events and liquidity stresses in leveraged environments are possible and have occurred on the platform
• Comparing GMX and Hyperliquid is complex; they use different architectures, risk models, and asset structures

Open interest is only one metric and does not fully represent protocol revenue, user trust, liquidity depth, or sustainability.

Why This Shift Matters for DeFi

Hyperliquid surpassing GMX highlights large-scale changes within the on-chain derivatives ecosystem.

• It demonstrates that decentralized perpetuals can now compete with centralized exchanges in performance
• Strong open interest indicates growing confidence from sophisticated traders and institutional-aligned users
• Competitive pressure may encourage innovation across derivatives protocols
• Higher usage will bring increased regulatory attention, especially around leverage and liquidation handling

This evolution signals the next stage in decentralized trading, where performance and user experience are becoming as important as decentralization.

Final Thoughts

Hyperliquid surpassing GMX in open interest reflects a combination of technical innovation, trader migration, and incentive-driven growth. Its on-chain order book model has proven more attractive to high-volume traders seeking speed and liquidity, while GMX’s earlier pool-based model faces growing competitive challenges.

However, sustained dominance will depend on Hyperliquid’s ability to manage leverage risk, maintain liquidity, and continue delivering technical performance in a rapidly evolving DeFi landscape.

FAQ

What does it mean that Hyperliquid passed GMX in open interest?

It means Hyperliquid has more outstanding perpetual contracts than GMX, showing higher trader activity and liquidity on the platform.

Why is Hyperliquid growing so fast?

Its fully on-chain order book, strong performance, deep liquidity, and attractive incentives are drawing traders from older derivatives protocols.

Is GMX losing users?

Reports show decreasing open interest and volume on GMX, suggesting traders are shifting to more performant platforms.

Does high open interest mean Hyperliquid is safer?

No. High open interest often includes high leverage, which increases liquidation and systemic risk during volatility.

Will Hyperliquid maintain its lead?

It depends on continued innovation, risk management, liquidity depth, and market conditions. The lead is not guaranteed long-term.