Hyperliquid’s Record July Hints at Bigger Ambitions as Key Upgrade Nears

Hyperliquid (HYPE) achieved a major milestone by capturing up to 35% of the total revenue generated by blockchain projects in July.

In this context, the upcoming HIP-3 upgrade is expected to soon make the platform a strong pillar of the DeFi market.

Soaring Revenue, Record Trading Volume

According to Matthew Sigel, the Head of Digital Assets Research at VanEck, Hyperliquid earned 35% of all blockchain revenue in July. This is attributed to Hyperliquid’s ability to capture much of Solana’s (SOL) recent growth by offering a simple, highly applicable product.

Revenue from Hyperliquid. Source: Matthew Sigel on X

With 63% of 24-hour trading volume and over 74% market share in perpetual contracts, the platform is increasingly becoming a leading decentralized derivatives trading venue, drawing wide interest from crypto investors.

Moreover, open interest reached $15.3 billion in July, a 369% increase year-to-date. Over $5.1 billion in USDC has been bridged, with inflows accelerating ahead of native USDC and CCTP V2 integrations.

Hyperliquid OI in July. Source: ournetwork

Hyperliquid’s rapid growth reflects users’ shift toward efficient, transparent, and non-custodial DeFi solutions. This shift is driven by centralized exchanges (CEXs) facing regulatory pressure and erosion of user trust.

A New Infrastructure Milestone

Another notable development is the upcoming release of HIP-3 upgrade. HIP-3 is expected to become an “X-Factor” that transforms Hyperliquid into a complete Web3 infrastructure ecosystem.

This upgrade will open the door to new applications beyond trading, from staking and lending to developing customizable financial derivative products. Many analysts believe that HIP-3 could elevate Hyperliquid to a dominant market position if it is executed correctly.

“HIP-3 will hit mainnet and will transform HL into more than just a crypto exchange. Expecting > 50% dominance once we hit our stride,” an X user anticipated.

However, it’s worth noting that detailed information about HIP-3 has not yet been fully disclosed. The platform’s rapid development also poses performance-related challenges.

Recently, Hyperliquid experienced a network outage that disrupted withdrawals. This raised concerns in the community about the system’s stability and risk management capabilities as it scales further.

Additionally, prominent venture capital firm Paradigm may be holding up to $765 million worth of Hyperliquid’s HYPE tokens. If true, this could signal a strong strategic belief from major institutions in Hyperliquid’s long-term potential.