Hyperliquid is emerging as a strong competitor in the DeFi space with a unique Layer 1 blockchain designed for decentralised perpetual futures trading. Following a substantial airdrop in November 2024, Hyperliquid has achieved impressive daily fees, outperforming Ethereum despite a significantly smaller Total Value Locked. Hyperliquid’s specialised design, community-focused tokenomics, and diverse ecosystem are driving its rapid growth and user adoption in the crypto market.
Hyperliquid, an emerging Layer 1 blockchain, has gained significant traction following its milestone airdrop in November 2024, establishing itself as a strong competitor in the decentralised finance (DeFi) arena. Despite possessing a smaller Total Value Locked (TVL) compared to Ethereum, Hyperliquid has achieved a remarkable ability to generate higher fees, showcasing an interesting dynamic in blockchain economics due to their different architectures and market focuses.
As of April 2025, Hyperliquid’s TVL stands at approximately $627.27 million, a notable feat for a specialised platform, particularly given its focus on decentralised perpetual futures trading. The recent airdrop of 310 million HYPE tokens, valued at $7.6 billion, has considerably boosted user adoption and trading volume, increasing its visibility in the market.
In contrast, Ethereum, which underpins much of the DeFi ecosystem, maintains a TVL exceeding $46 billion and supports over 1,216 projects, including decentralised applications (dApps), non-fungible tokens (NFTs), and various DeFi protocols. Recent updates such as the Dencun upgrade have significantly reduced Layer 2 fees by 95%, yet Ethereum has experienced a drop in chain fees, with fees reported at $300,000 in a recent 24-hour period, lagging behind Hyperliquid’s earnings of $1 million.
The fees trend starkly illustrates Ethereum’s challenges, especially in Q1 2025, where Ethereum’s revenue declined as network activity dipped. While Ethereum benefits from high TVL, most activities are passive, such as staking, whereas Hyperliquid thrives on high-turnover trading, even managing to surpass Ethereum in daily fees generated despite having a TVL nearly 80 times smaller. Concentrated whale activity has escalated Hyperliquid’s trading volume to reach $470 million per day.
Hyperliquid’s robust performance is attributed to its unique design and target market. The platform’s decentralised exchange (DEX) for perpetual futures operates on HyperBFT consensus, enabling sub-second latency and processing capability of 100,000 orders per second, providing a competitive edge against centralised exchanges. High-leverage trading options of up to 50x and a cost-effective structure contribute to substantial trading volumes and correspondingly high fees.
The HLP Vault, an innovative mechanism, ensures efficient revenue capture by aggregating fees from various transactions, contrasting with Ethereum’s gas fees which fluctuate based on network congestion and are often tied up in low-turnover protocols. While Ethereum’s scalability was improved by Dencun, the reduction in gas costs inadvertently hampered its revenue-generating potential.
The recent airdrop has effectively attracted traders while maintaining growth in TVL, distinguishing Hyperliquid from other projects that typically see declines post-airdrop. Additionally, Hyperliquid’s tokenomics, with a focus on community by allocating 76.2% of HYPE tokens to users, has significantly boosted engagement within its ecosystem.
Since the launch of HyperEVM in February 2025, Hyperliquid has transitioned from merely a DEX into a comprehensive Web3 ecosystem. HyperEVM is characterised by quick block times and parallel processing capabilities, supporting over 100 dApps across various sectors including DeFi, NFTs, GameFi, and liquid staking. Projects such as Hyperlend and Timeswap lead innovations in lending protocols while others like Cluster and Solv Protocol enhance liquid staking options.
The ecosystem is further enriched with native DEXs such as HyperSwap and Spectra, AI-driven solutions like Beats AI and HCR Bot, as well as dynamic NFT collections and GameFi platforms engaging the community. Interoperability is enhanced by bridges such as Wormhole and HyBridge alongside oracles like Pyth Network. Hyperliquid’s ambition likened to a ‘Solana on EVM’ is focused on creating fast, scalable experiences vital for Web3 innovation, thereby broadening its platform from a niche DEX to a vibrant, competitive marketplace.
