Massive adoption and use of decentralized derivatives exchange, Hyperliquid, has led to a huge increase in Hyperliquid network revenue in July — largely at the expense of Solana, according to VanEck.
In July, Hyperliquid earned 35% of all blockchain revenue, with growth coming at the particular expense of Solana, as well as Ethereum and BNB Chain, VanEck researchers wrote in a monthly crypto recap report.
“Hyperliquid was able to capture much of Solana’s momentum, and likely Solana’s market capitalization, because it offers a simple, highly functional product,” VanEck Head of Digital Assets Research, Matthew Sigel and fellow analysts Patrick Bush and Nathan Frankovitz said, adding:
“Hyperliquid has poached high-value users from Solana and has retained them.”
While Solana has struggled with reliability issues and failed to meet production deadlines for core software upgrades, Hyperliquid has capitalized on these weaknesses by providing a superior user experience in derivatives trading, they said.
“Solana has not delivered meaningful improvements to boost its user experience, specifically in perpetual futures (perps) trading, and Hyperliquid stepped up with a better product.”
Hyperliquid open interest surges
“Hyperliquid is emerging as the leading onchain perps venue,” reported Our Network in a newsletter seen by Cointelegraph.
Open interest reached $15.3 billion in July and is up 369% year-to-date, with more than $5.1 billion USDC (USDC) having been bridged in, it added.
Phantom Wallet integration, which offers in-app perps, drove $2.66 billion in volume, $1.3 million in fees, and 20,900 new users to Hyperliquid in July.
Related: Hyperliquid reimburses $2M to crypto traders after API outage
Crypto perpetual futures are derivatives contracts that let traders speculate on cryptocurrency prices without expiration dates.
HYPE prices hit July all-time high
The platform’s native token (HYPE) has also rallied recently, hitting an all-time high of $49.75 on July 14 from a low of just over $10 in early April.
Comparatively, Solana’s native token (SOL) has lost 44% since its January all-time high, which was primarily driven by the memecoin frenzy.
HYPE was trading down 3% on the day at $37.38 in a broader market retreat, at the time of writing.
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