Hyperliquid Crypto: Only 166 of 1,000 Traders Profitable—What’s Going On?

Key Insights:

• Only 166 out of 1,000 Hyperliquid crypto traders are profitable — a 16.6% success rate.
• Average daily PnL across all users is a loss of $5,600.
• 170 traders have made over $10 million, often with ROI under 200%, pointing to large initial capital.
• Despite this, Hyperliquid holds 60% of the perps DEX market and processed $188B in volume in 30 days.

A growing number of traders are using Hyperliquid, a blockchain-based futures exchange. But new data show most aren’t making money. Out of 1,000 traders analyzed, only 166 turned a profit — a 16.6% success rate.

The data, shared by Hyperdash analytics in June 2025, shows that on average, traders lost $5,600 per day. While a small group has made millions, the vast majority are in the red.

Most Lose, Few Win Big; Why the Losses?

The platform allows users to trade perpetual futures, a type of derivative with no expiry date. These contracts can be leveraged — meaning traders borrow funds to take larger positions. This amplifies gains but also increases the risk of losses.

In the same dataset, just 170 traders earned over $10 million, and 1,589 made at least $1 million. However, most of these top accounts had returns under 200%, indicating they likely started with large capital or received big token rewards.

This kind of imbalance isn’t unusual in leveraged markets. In many cases, a small number of traders capture most of the profits, while the rest lose money.

Leveraged trading is risky. A small price move can erase a trader’s entire position. Hyperliquid allows leverage of up to 10× or more. That means a 5% market move can lead to a full loss on a position.

As a result, many traders, especially those with small accounts, get wiped out. Slippage, fees, and funding costs also eat into potential profits. These issues have been documented in traditional markets too — a U.S. government study found most futures traders lose money over time.

Hyperliquid launched with generous token rewards. Early traders received HYPE tokens based on how much they traded. These airdrops added to profits, especially for large-volume traders.

But the distribution was uneven. Roughly 20% of users received 80% of the tokens, according to an analysis of the airdrop.

This means many top earners were helped not just by good trades but by reward incentives. Some on social media pointed out that these gains may have come from simply holding tokens received early.

Hyperliquid Crypto’s Market Share Grows

Despite the losses among users, Hyperliquid has become a major player in decentralized finance. It now controls over 60% of the DeFi perpetuals market, according to data from Dune Analytics.

Its 30-day trading volume recently hit $188 billion, far outpacing competitors like dYdX and GMX. The platform now has nearly 500,000 users and generated $37.6 million in fees last month.

Analysts say Hyperliquid’s growth is starting to compete with centralized exchanges like Binance and Bybit. In fact, Hyperliquid’s share of Binance’s daily trading volume rose from 2% in October 2024 to about 9% by June 2025.

If the trend continues, it could reach 20% by the end of the year — a significant shift for an on-chain exchange.

Unlike centralized exchanges, Hyperliquid crypto runs entirely on a blockchain. All trades happen on-chain, without an intermediary. There’s no KYC (Know Your Customer) process, and users maintain custody of their assets.

But this also means traders face more direct costs — such as slippage and funding rates — and must manage risks themselves. The openness and leverage attract many users, but the reality is clear: most are losing money.

Hyperliquid’s rise shows strong demand for decentralized, high-speed trading. But its data reveals a tough truth: only a small fraction of traders profit, while most lose — often significantly. With token rewards favoring high-volume accounts and leveraged risk magnifying losses, retail traders face an uphill battle.

As interest in on-chain futures grows, so too must awareness of the risks. Hyperliquid may be changing how people trade — but it hasn’t changed the outcome for most.

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