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Perpetual futures, commonly known as perps, have become one of the fastest-growing areas in decentralized finance (DeFi). Unlike traditional futures contracts, perps have no expiration date, allowing traders to maintain leveraged positions indefinitely.
In the early 2020s, perpetual trading volume was dominated almost entirely by centralized exchanges (CEXes) such as Binance and Bybit. However, the tide has shifted. Decentralized perpetual exchanges, or perp DEXes, have rapidly gained traction. According to Scott, perp DEXes grew from less than 2% of CEX perpetual trading volumes in 2022 to more than 20% as of September 2025.
Hyperliquid, issuing its governance and utility token HYPE, has been a leading driver of this decentralized migration. But recent weeks have seen intense competition. Hyperliquid’s share of perp DEX trading volume fell sharply from 45% to 8%, while Aster surged to dominate weekly trading with over $270 billion in volume. Smaller platforms like Lighter and edgeX have also carved out their niches, posting triple-digit percentage gains.
Why Hyperliquid Still Stands Out
Despite the decline in market share, Scott insists that Hyperliquid Perp DEX is still the best-positioned platform in the sector. His thesis hinges on three pillars: revenue, open interest, and ecosystem expansion.
While volume numbers are important, they can often be distorted by short-term incentive programs. Revenue, on the other hand, measures actual value captured by the protocol. Hyperliquid continues to post strong revenue relative to competitors and trades at a more attractive multiple compared to heavily subsidized rivals.
Equally important is open interest, which measures the total value of outstanding derivative contracts. Unlike trading volume, open interest reflects liquidity and user commitment. Scott highlights that Hyperliquid still commands an impressive 62% share of perp DEX open interest — far above rivals Aster, Lighter, and edgeX. This suggests that serious traders remain loyal to Hyperliquid, even if some speculative volume has shifted elsewhere.
Expansion Through HyperEVM and Ecosystem Growth
Another reason for Scott’s bullishness is Hyperliquid’s ecosystem expansion. The team has launched HyperEVM, a new execution layer designed to host DeFi protocols directly integrated with Hyperliquid. Already, HyperEVM supports over 100 protocols and boasts $2 billion in total value locked (TVL), making it one of the most active environments for builders.
The integration of HyperEVM is critical because it allows perpetual trading to interact seamlessly with lending, borrowing, and yield strategies, effectively creating a perpetual-native DeFi hub. This makes Hyperliquid more than just a DEX — it’s becoming a broader financial ecosystem.
The Role of USDH Stablecoin
Stablecoins have long been the backbone of DeFi liquidity, and Hyperliquid is pushing forward with its own initiative. The platform’s USDH stablecoin is designed to provide a native unit of account for Hyperliquid traders and DeFi participants.
What sets USDH apart is its backing. According to Scott, reserves are held with major asset managers like BlackRock and Superstate, giving the stablecoin an added layer of credibility and security. If adoption accelerates, USDH could reduce Hyperliquid’s reliance on external stablecoins like USDT and USDC, further deepening its liquidity moat.
HIP-3 and the Future of Market Creation
Another major initiative is HIP-3, a governance proposal designed to allow builders and institutions to launch new perpetual markets on Hyperliquid. To participate, developers would need to stake large amounts of HYPE tokens, effectively creating a “supply sink” for the token.
By introducing this staking requirement, Hyperliquid ensures that only serious participants can create markets while also generating additional demand for HYPE. If HIP-3 succeeds, it could turn Hyperliquid into the default launchpad for perpetual futures markets in crypto.
Challenges on the Horizon
Of course, Scott acknowledges that his bullish stance comes with caveats. Hyperliquid’s leadership depends heavily on maintaining its dominance in open interest and revenue. If those metrics were to decline meaningfully, or if USDH adoption stalls, the platform could lose its competitive edge.
Meanwhile, rivals like Aster continue to grow aggressively, leveraging deep ties with centralized exchanges and heavy incentive programs to attract traders. The question remains whether this activity is sustainable or merely a short-term liquidity mining push.
The Bigger Picture for Perp DEXes
Regardless of individual winners, the rise of perp DEXes signals a broader trend: traders are shifting away from centralized platforms in favor of transparent, self-custodial alternatives. The ability to trade perpetual futures without counterparty risk is becoming increasingly attractive, especially after years of scandals involving collapsed CEXes.
As perp DEX adoption continues to grow, the competition between Hyperliquid, Aster, and others will only intensify. But for now, Hyperliquid’s fundamentals — sticky liquidity, strong revenue, and ecosystem expansion — make it the standout project.
Hyperliquid Trading Outlook
Looking ahead, Hyperliquid’s success may hinge on its ability to execute expansion plans. If HyperEVM adoption deepens, USDH achieves liquidity, and HIP-3 launches successfully, Hyperliquid could cement itself as the decentralized Wall Street for perpetual futures.
For investors, Scott argues that Hyperliquid remains undervalued compared to its potential. With open interest dominance at 62%, the platform has the liquidity and staying power to weather short-term fluctuations in volume.
In short, while Aster’s rise has shaken the perp DEX market, Hyperliquid Perp DEX continues to look like the most investable bet for those betting on the future of decentralized derivatives.
