Have you ever wondered what the future of financial trading will look like? While the traditional financial world is still exploring its path of digital transformation, a new wave centered on decentralized technology has quietly arrived. In this wave, an innovative platform called 'Hyperliquid' is rapidly emerging, attempting an unprecedented combination of the extreme speed sought by professional traders and the complete transparency valued by ordinary users.

This in-depth analysis will unveil the mysteries of Hyperliquid, using the simplest language to help you understand what it is, why it has gained immense market attention in a short time, and what kind of future trading landscape it paints for us.

What is Hyperliquid: A New Look at Decentralized Perpetual Futures Trading

Simply put, Hyperliquid is a decentralized perpetual futures trading platform. You might ask, how is this different from other trading platforms we've heard of?

Imagine a traditional trading platform as a central server operated by a specific company, where all trading orders are processed and recorded internally. Hyperliquid, on the other hand, is more like a fully automated trading network with open and transparent rules. All its operational rules are written in code and executed on a public, shared ledger that everyone can view but no one can alter.

The platform specializes in a financial instrument called 'perpetual futures.' You can think of it as a contract that predicts the future price direction of an asset, without needing to own the asset itself. What makes Hyperliquid special is that it is built on its own proprietary, high-performance Layer 1 (L1) blockchain. This 'self-built expressway' model fundamentally solves the common problems of slow speeds and high costs that plagued many early decentralized platforms.

Why Hyperliquid is Worth Watching: Core Advantages and Astonishing Growth

Among the many Decentralized Finance (DeFi) projects, Hyperliquid has managed to stand out mainly by addressing several key pain points in technology and user experience.

First is the extreme optimization of speed and cost. Many early decentralized applications, built on congested shared networks, often required long waiting times for transactions and incurred high fees. By building its own 'dedicated trading chain,' Hyperliquid achieves sub-second transaction confirmation speeds and extremely low trading fees, providing users with a smooth experience comparable to centralized platforms.

Second is a familiar trading model. It adopts an 'on-chain order book' model, which is very friendly to users accustomed to traditional financial trading interfaces. You can clearly see the buy and sell orders in the market, allowing for more precise judgments. This design lowers the barrier to entry for new users into the decentralized world.

These advantages are directly reflected in astonishing market data.

• Leapfrog Growth in Total Value Locked (TVL): Starting from the fourth quarter of 2024, Hyperliquid's TVL experienced explosive growth, soaring from approximately $564 million to over $2 billion. This momentum continued into 2025, with its platform TVL reaching $3.5 billion as of June 30, 2025.

• Dominant Market Share: Hyperliquid quickly consolidated its position in the decentralized perpetuals market. By the end of 2024, its market share was about 56%, and by the end of the first quarter of 2025, it had exceeded 73%. The latest data shows that as of July 2025, its market share even reached over 75%.

• Continuous Climb in Trading Volume and User Count: The platform's trading activity is extremely vibrant. Its monthly trading volume continued to set new highs in 2025, with July's volume reaching approximately $320 billion. At the same time, the user base has been steadily expanding, with the number of user addresses growing from 291,000 to over 518,000 in the first half of 2025, an increase of 78%.

Getting Started for Beginners: How to Interact with a Decentralized Platform in Three Steps

For users new to such platforms, the process is simpler than you might think. Interacting with a decentralized application (DApp) like Hyperliquid can generally be summarized in three core steps:

1. Prepare Your "Digital Wallet": In the Web3 world, you need a digital wallet. It's like your personal digital safe for storing and managing your crypto assets, and only you can control it. Before you start, you need to connect this wallet to the platform, which is the first key to entering any decentralized application.

2. Fund Your Wallet and Deposit into the Platform: After successfully connecting, you need to transfer some assets to be used as trading collateral (usually stablecoins like USDC) into your digital wallet, and then deposit them from the wallet into your Hyperliquid trading account. This process is similar to funding your brokerage account in preparation for subsequent operations.

3. Familiarize Yourself with the Interface and Start Exploring: Once your funds are ready, you can begin exploring the trading interface. It's recommended to first get familiar with core features like candlestick charts and the order book, and understand how to place "long" (predicting a price increase) or "short" (predicting a price decrease) orders. Starting with observation to gradually understand how the platform works is a prudent first step.

Risks Not to Be Ignored: Understanding Potential Challenges and Security Awareness

While Hyperliquid brings many innovations, it is equally important to maintain a clear awareness when exploring. As an educational reminder, understanding its inherent risks is a prerequisite for safe participation.

• Smart Contract Risk: All decentralized platforms run on code known as "smart contracts." Although they undergo rigorous design and auditing, theoretically, any code can have undiscovered vulnerabilities, which poses a potential risk.

• Liquidation Risk: Perpetual futures trading often involves leverage. This means if the market moves completely against your prediction, your position will be automatically closed by the system when losses reach a certain level to prevent further loss. This process is called "liquidation." It is an inherent mechanism of leveraged trading and requires traders to have good risk management awareness.

• The Double-Edged Sword of Decentralization: Decentralization gives users complete control over their assets, but it also means greater personal responsibility. If you make an operational error (such as sending assets to the wrong address or forgetting your private key), the platform cannot provide "central customer service" like a traditional institution to help you recover your assets.

Advanced Exploration: Discovering More Opportunities in the Hyperliquid Ecosystem

Once you are familiar enough with basic trading, you will find that a platform like Hyperliquid offers much more than just trading. Its ecosystem is constantly expanding, providing users with more ways to participate.

An interesting direction is to become a "Liquidity Provider" (LP). You can deposit your assets into specific vaults on the platform. Doing so is like becoming a small "supplier" for the market, providing necessary liquidity for the platform's smooth operation. In return, you may share in a portion of the platform's trading fee revenue.

Furthermore, since Hyperliquid itself is a high-performance public chain, more and more developers are starting to build new applications (DApps) on it, covering various fields such as lending, stablecoins, and data analysis tools, forming a diverse ecosystem.

Conclusion: What New Possibilities Does Hyperliquid Bring to DeFi Traders

The emergence of Hyperliquid has brought significant inspiration to the world of decentralized finance. It successfully combines the transparency and security of decentralized technology with the efficiency and ease of use of traditional financial platforms, proving that an excellent user experience and the principles of decentralization can coexist.

Through its innovative technical architecture, it not only provides a powerful tool for professional traders but also opens a door for beginners to understand cutting-edge financial technology. It represents a new possibility for the future of financial infrastructure—a fairer, more efficient, and more transparent era of trading.

For anyone curious about the future of technology and finance, taking the time to understand the operating principles of platforms like Hyperliquid is undoubtedly a valuable intellectual investment. When exploring unknown territories, maintaining a mindset of continuous learning and choosing reputable platforms widely recognized by the market is the most reliable first step on your journey of discovery.

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