Hyperliquid: The DEX Challenging Binance with 11 Employees

ByVictor
article-hyperliquid-dex

📋 TL;DR

  • Hyperliquid dominates the perpetual DEX market with 70% market share and over 40 billion dollars in weekly volume
  • The platform operates with only 11 employees and competes with Binance and Bybit
  • Its order book runs entirely on-chain, a rare technical feat for a DEX
  • The HYPE token surged 22% on January 28, 2026, reaching $32.74
  • Zero gas fees for transactions, with some of the lowest trading fees on the market

In the world of crypto trading, one platform is defying all expectations. Hyperliquid, a decentralized exchange specializing in perpetual contracts, now processes over 100 billion dollars in volume. The most surprising part? The team has just 11 people. This success story illustrates the power of decentralized finance against centralized giants.

Hyperliquid by the Numbers: The New DeFi Giant

Hyperliquid’s statistics are staggering. The platform processed approximately 40.7 billion dollars in weekly volume in January 2026. It holds nearly 9.57 billion dollars in open interest, more than several of its competitors combined.

With 76.7% market share and over 1.5 trillion dollars in total cumulative volume, Hyperliquid crushes the competition. Rivals like Aster and Lighter struggle to keep up. The platform has also generated over 116 million dollars in revenue from trading fees.

On January 28, 2026, the HYPE token recorded a 22% gain, reaching $32.74. This performance made it one of the most dynamic cryptocurrencies of the day. The protocol’s TVL (Total Value Locked) reflects user confidence.

How Does Hyperliquid Work?

Hyperliquid is not a simple DEX. It’s a Layer 1 blockchain built specifically for trading. The platform uses a proprietary consensus mechanism called HyperBFT. This system can process up to 200,000 transactions per second.

The major technical feature lies in its fully on-chain order book. Unlike most DEXs that use off-chain order books for performance reasons, Hyperliquid handles everything directly on its blockchain. Order creation, matching, and cancellations all happen at the protocol level.

The architecture consists of three main components. HyperBFT manages consensus among validators. HyperCore executes orders and maintains system state. HyperEVM enables deployment of smart contracts compatible with Ethereum.

Benefits for Traders

Hyperliquid offers several advantages that explain its success. First, zero gas fees for transactions. Users only pay standard trading fees: approximately 0.01% for makers and 0.035% for takers, depending on volume.

The platform offers leverage up to 50x on perpetual contracts. Transactions are confirmed in less than a second, providing an experience comparable to centralized exchanges. All while maintaining the transparency and self-custody native to DeFi.

The available tools are also sophisticated. Limit orders, stop-loss, high-frequency trading… Professional traders find all the features they’re used to. A “vaults” system even enables decentralized copy trading.

Before diving into perpetual trading, make sure you understand the risks associated with cryptocurrencies.

The HYPE Token: Tokenomics and Utility

HYPE is the native token of the Hyperliquid ecosystem. Its maximum supply is capped at 1 billion tokens. Unlike many crypto projects, Hyperliquid did not raise from venture capital firms. This decision allowed 75% of tokens to be allocated to the community.

The HYPE token serves multiple functions. It’s used for protocol governance, allowing holders to vote on developments. It can be used to pay gas fees on the Hyperliquid blockchain. Staking HYPE offers rewards of approximately 2% per year.

A deflationary burn mechanism reduces supply by approximately 26% per year. This policy aims to create long-term upward pressure on price. HYPE holders also benefit from trading fee discounts.

Planned Developments for 2026

The HyperEVM mainnet launched in January 2026. This upgrade enables better interoperability with the Hyperliquid ecosystem. Developers can now create decentralized applications that interact directly with the platform’s order book and liquidity.

Several improvements are planned for 2026. ERC20 transfers and precompiles should expand DeFi possibilities. The USDH stablecoin should also integrate more broadly, with governance proposals from Paxos and Frax Finance.

The team is also working on continuous performance improvements. The goal is to maintain technological advantage over competitors while attracting new institutional users.

Risks and Limitations to Know

Despite its success, Hyperliquid presents certain risks. Perpetual contract trading with leverage is extremely risky. Losses can exceed the initial investment in case of liquidation.

The relative centralization of the network is also a point of attention. With only 11 employees, the team remains small. A security flaw or technical issue could have significant consequences. Additionally, regulation of perpetual DEXs remains unclear in many jurisdictions.

For beginners, it’s better to start by understanding how to analyze a cryptocurrency before venturing into derivatives trading.

📚 Glossary

  • DEX (Decentralized Exchange): a cryptocurrency exchange platform operating without a centralized intermediary. Users maintain control of their funds throughout transactions.
  • DeFi (Decentralized Finance): an ecosystem of financial services built on blockchain, without banks or traditional institutions. Includes decentralized lending, trading, and derivatives.
  • Blockchain: a distributed digital ledger where transactions are recorded immutably and transparently. Each block is cryptographically linked to the previous one.
  • Smart Contract: a self-executing program stored on a blockchain. It automatically executes the terms of an agreement when conditions are met.
  • Liquidation: forced closure of a leveraged position when collateral becomes insufficient to cover losses. Can result in total loss of the stake.
  • Perpetual Contract: a crypto derivative with no expiration date, allowing speculation on an asset’s price with leverage. The price tracks the spot market via a funding mechanism.

❓ Frequently Asked Questions

What is Hyperliquid?

Hyperliquid is a decentralized exchange platform (DEX) specializing in perpetual contracts. It operates on its own Layer 1 blockchain and offers a fully on-chain order book.

How does the HYPE token work?

HYPE is Hyperliquid’s native token. It’s used for governance, gas fee payments, and can be staked for rewards. A burn mechanism reduces supply by approximately 26% per year.

What are the fees on Hyperliquid?

Hyperliquid does not charge gas fees. Trading fees are approximately 0.01% for makers and 0.035% for takers. These rates may vary based on trading volume.

Is Hyperliquid secure?

Hyperliquid uses HyperBFT consensus and an on-chain order book for transparency. However, like any DeFi protocol, it carries smart contract risks. Learn more: Crypto Risks

What is the maximum leverage on Hyperliquid?

Hyperliquid offers leverage up to 50x on perpetual contracts. Warning: leveraged trading is very risky and can result in total loss of investment.

How to buy the HYPE token?

The HYPE token can be purchased on several centralized and decentralized exchanges. Always verify the contract address on the official website before buying. Guide: How to Choose a Crypto Platform

📚 Sources

This article is based on the following sources:

  • CoinDesk – Hyperliquid extends lead in perp DEX race
  • Fortune – DeFi has earned its place at the big table
  • Phemex – Hyperliquid dominates market with 70% share
  • RocknBlock – Technical deep dive into Hyperliquid
  • Nansen – What is Hyperliquid?
  • CoinMarketCap – HYPE market data

How to cite this article:
Fibo Crypto. (2026). Hyperliquid: The DEX Challenging Binance with 11 Employees. Retrieved [date] from https://fibo-crypto.fr/en/blog/hyperliquid-dex-perpetuals