Whale Betting Boosts Hyperliquid as Platform Takes 62% of Perps Market

Hyperliquid is emerging as a top cryptocurrency derivative trading platform, particularly attracting the attention of large investors, often referred to as whales.

High leverage support, fast trading speed, low fees, strong security, and dominant market share make Hyperliquid attractive to whales.

Hyperliquid Captures Over 60% of Perps Market Share

Hyperliquid has become a prominent name among perpetual futures platforms. According to Dune data, in the past 24 hours, Hyperliquid's perps trading volume accounted for 62%, totaling over $10.8 billion. Its weekly trading volume also leads, exceeding $36.3 billion.

With such impressive performance, Hyperliquid's perps currently hold over 60% market share among perpetual futures platforms. Notably, Hyperliquid's open interest recently reached a record high of over $4.9 billion. This figure reflects high liquidity and demonstrates significant confidence from the trading community, especially whales, in Hyperliquid.

"After initial challenges with leverage products in futures trading, it turns out Hyperliquid has stabilized quite well, building to become the #1 futures DEX" a X user commented.

Interesting Whale Activities

Whale trading activity on Hyperliquid is very dynamic, with many large-scale trades. According to OnchainLens, cryptocurrency expert James Wynn currently holds multiple long positions on Hyperliquid, with total unrealized profits exceeding $39 million.

These positions include PEPE (10x leverage), TRUMP (10x), BTC (40x), and FARTCOIN (5x). He has earned over $46 million in just two months on Hyperliquid from high-leverage positions on Bitcoin and meme coins like PEPE.

Separately, a whale recently deposited $10 million USDC into Hyperliquid, opening short positions on BTC, SOL, and ETH with 5x leverage. Another whale pumped $8.58 million USDC into Hyperliquid and traded ETH with 2x leverage.

Previously, ZachXBT identified a whale using 50x leverage on Hyperliquid as British cybercriminal William Parker. Additionally, a whale trader opened a short position with 40x leverage worth $423 million on BTC on Hyperliquid, attracting market-wide attention and triggering a liquidation wave.

These trades highlight whales' preference for Hyperliquid and reflect the high-risk levels they are willing to accept on this platform. However, some suspicious high-leverage trades on Hyperliquid have raised money laundering concerns. So what makes Hyperliquid so attractive to whales?

Why is Hyperliquid the Top Choice?

Whales prefer Hyperliquid due to the platform's outstanding advantages. One primary reason is the ability to provide high leverage and trading flexibility. Hyperliquid allows users to trade with leverage from 3x to 40x and even up to 50x.

This is particularly attractive to large investors seeking high-profit opportunities despite significant risks.

Moreover, the platform uses HyperBFT blockchain, an exclusive consensus mechanism processing transactions in less than a second. This rapid speed ensures whales can execute large trades without delay. Hyperliquid also stands out with low transaction fees. Furthermore, its dominant market share plays a crucial role in attracting whales. High liquidity helps reduce trading costs and price slippage risks, a primary concern for whales trading large volumes.

Although Hyperliquid offers many advantages for whales, it also has significant risks. High-leverage trades often lead to substantial losses. The delisting of JELLY is a classic example. Hyperliquid faced $230 million in debt after a short squeeze caused by JELLY whales manipulating its price.

Hyperliquid responded to the JELLY squeeze by refunding affected traders and implementing stricter security measures to prevent future incidents.

Moreover, regulatory pressure is another factor to consider. Gracy Chen, Bitget's CEO, shared information about the platform's KYC/AML issues.

"Despite introducing itself as an innovative decentralized trading platform with a bold vision, Hyperliquid operates like an offshore CEX without KYC/AML, allowing illegal money flows and bad actors," said Gracy Chen.

However, with its leading position and continuous technological advancements, Hyperliquid remains the top choice for "whales", especially as the cryptocurrency derivatives market continues to develop.