Hyperliquid, a new decentralized exchange (DEX), has made waves and quickly rose to the forefront of the cryptocurrency trading ecosystem. Its advanced trading features and recent technological integrations have propelled it to the forefront of the decentralized finance (DeFi) sector. The platform gives active traders the power to pounce on short term, profitable opportunities. Its high-performance infrastructure — home to one of the world’s fastest networks — has fueled exponential growth since. From there, Hyperliquid went from an unknown project to now operating over 80% of the DeFi perpetual trading market. By May 2025, Hyperliquid was seeing astounding daily trading volumes of $22B. It achieved $10.1 billion in open interest, locking in the 3rd highest of any cryptocurrency exchange.
The exchange's state execution is split into two broad components: HyperCore and HyperEVM. Hyperliquid’s recent deployment of HyperCore and HyperEVM on mainnet was an important technological milestone. The platform’s average daily trading volume exploded from $3 million in early March 2023. By the end of the month, it jumped to a staggering $50 million. With Hyperliquid’s true on-chain orderbook infrastructure, real-time and transparent order matching at ultra-low latency is made possible. Its consensus algorithm, while theoretical, can scale up to an incredible 2 million orders per second, providing a supercharged 100x improvement on Tendermint. The platform’s performance speed is unmatched, with trades settling on-chain in less than 1 second. Hyperliquid supports advanced order types, including reduce-only, post-only, IOC (Immediate-or-Cancel), and TP/SL orders. These orders trigger on-chain without the need for wallet popups, guaranteeing execution with tighter spreads and less slippage, perfect for scalping and other HFT strategies.
Technological Advancements and Infrastructure
Hyperliquid’s technological infrastructure—including its proprietary matching engine—is the foundation of its success. With HyperCore and HyperEVM now live on mainnet, our tech continues to further the state-of-the-art in decentralized exchange capabilities. Further, this tight integration significantly enhances the platform’s performance and scalability. It enables the underlying technology to handle tremendous trading volumes and accommodating intricate order types.
HyperCore and HyperEVM together make up Hyperliquid’s state execution backbone. HyperCore handles order placing, order matching and trade settlement. On the other hand, HyperEVM handles smart contract interoperability and asset handling. By separating these functions, Hyperliquid can optimize each one for maximum performance and security. Hyperliquid’s consensus algorithm is designed to theoretically handle 2 million orders per second, a 100x increase from Tendermint. With node software continuing to be optimized, Hyperliquid’s HyperCore is able to support over 200,000 orders per second, with the throughput continuing to increase.
The platforms unique on-chain orderbook model differentiates it from the majority of other DEXs that use off-chain matching engines. This democratic by design approach provides a transparency that makes manipulation highly unlikely and obvious if attempted. Nothing matters more to the active trader demanding real-time trading with the highest possible degree of recompense latency, and Hyperliquid’s infrastructure is tuned all around this. Making the advantage even greater, the exchange’s execution speed is unparalleled, with trades settling on-chain in less than 1 second.
Trading Features and Market Performance
That’s because Hyperliquid’s suite of advanced trading features mostly used to attract sophisticated traders. The platform supports more advanced order types in addition to simple market or limit orders. These are orders like reduce-only, post-only, IOC (Immediate-or-Cancel), TP/SL that trigger on-chain with no wallet popups. These sophisticated order types offer traders a lot more flexibility in managing risk and controlling their open trades.
Hyperliquid provides accurate order execution through narrower spreads and minimized slippage. This leads to it being the perfect currency for scalping and high-emphasis on speed trading strategies. The platform is built with precision and efficiency as the top priorities. This intense focus is catnip for speculators who rely on speed and precision to enhance their profits. Hyperliquid’s professional-grade trading features offer a ton of leverage for active traders to cut themselves some juicy profits.
The technology’s robust market performance is, of course, a result of the platform’s increasing popularity and adoption. Hyperliquid’s daily trading volume was only $3 million in early March 2023. By the end of the month, it was already at an awesome $50 million! Hyperliquid has quickly grown from a little-known project to now commanding more than 80% of the DeFi perpetual trading market. Fairly quickly, by May 2025, Hyperliquid rocketed to $22 billion in daily trading volume. It hit a staggering open interest of $10.1 billion, taking the 3rd place amongst all cryptocurrency exchanges. As of April 2025, Hyperliquid’s recently launched platform has witnessed an extraordinary 50% increase in trading volume. This surge highlights its knack for fetching crypto traders, especially the ones looking for Decentralized Alternatives to Centralized Exchanges.
Origin and Future Outlook
Hyperliquid’s founding team made the leap from successful quantitative trading professionals to the development of Hyperliquid, driven by two main factors. Their experience as quantitative traders no doubt helped them hone their vision of what would be needed to build a high-performance, feature-rich exchange. Their deep understanding of market dynamics and complex trading strategies likely played a role in helping the platform succeed in attracting these active traders, too.
That was one of the key objectives, to create a decentralized exchange. This new platform is designed to address many limitations of today’s exchanges. Their goal was to create a system that was transparent, easy to use, and free from political manipulation. The other main driving factor was to address the increasing demand for more decentralized trading solutions. As you likely know, the DeFi sector is exploding. The appetite certainly exists for exchanges that offer the performance and functionality of centralized platforms, but without the associated risks.
Hyperliquid’s growth trajectory indicates a strong potential for further consolidation of its competitive advantage within the DEX and larger cryptocurrency trading market. By prioritizing technological innovation, advanced trading features, and an intuitive user experience, the platform has cemented itself to succeed today and beyond. The entire DeFi sector is changing by the day. Hyperliquid as a protocol aims to have a lasting impact on the future of decentralized trading.
