The expansion coincided with stronger trading volumes and a recovery in protocol revenue. However, separate disclosures about market maker Wintermute’s dominance of Hyperliquid’s priority-data auctions have renewed questions about how trading advantages are distributed on the platform.
How Did Hyperliquid Gain Ground Against Centralized Exchanges?
Hyperliquid’s native cryptocurrency perpetual futures volume increased from $109.5 billion in July to more than $188 billion in September, a recovery of approximately 72% over two months.
Average daily traders reached a quarterly record of 65,161, increasing 20% from the previous quarter. The figures suggest that the recovery involved both higher trading activity and greater participation rather than simply larger outstanding positions.
The September performance extended a rebound already visible earlier in the quarter. As FinanceFeeds reported in September, Hyperliquid’s open interest had recovered to $14.3 billion after the sharp October 2025 deleveraging event, when outstanding positions fell approximately 56% in a single session.
The latest $16.8 billion figure measures outstanding derivatives exposure at quarter-end, not cumulative trading volume or capital deposited on the exchange. Comparisons with centralized competitors also depend on the exchanges and contracts included in the research sample.
Protocol revenue reached $190.9 million in Q3, an increase of 21.7% quarter over quarter, but remained 36.5% below the comparable period in 2025.
Trading and network revenue increased 10.7% to $173.6 million. An additional $17.3 million came from USDC reserve income following an arrangement involving Coinbase, accounting for approximately half of the quarter’s total revenue increase.
Investor Takeaway
Hyperliquid’s stronger market position has not yet translated into a year-over-year revenue recovery. The distinction between trading-generated revenue and reserve income matters when assessing whether the platform’s earnings growth can be sustained through different market conditions.
Why Are Stock-Linked Perpetuals Growing Faster Than Commodities?
Equity-linked perpetual futures generated $153.8 billion in third-quarter trading volume, increasing 161% from Q2 and accounting for 58.8% of the $262 billion traded through Hyperliquid’s HIP-3 framework.
The growth pushed equities ahead of commodities as HIP-3’s largest asset category. HIP-3 allows third-party operators to launch perpetual futures markets referencing cryptocurrencies, stocks, indices and commodities using Hyperliquid’s underlying infrastructure.
As FinanceFeeds previously examined, the framework allows independent market deployers to create derivatives products by staking HYPE tokens and setting market parameters such as leverage and price references.
The latest research identified Korean equities as one driver of the increase. However, it also documented the risks of pricing stock-linked derivatives outside the trading hours of their underlying markets.
A July reference-price incident involving an SK hynix perpetual futures contract triggered $57.4 million in liquidations, illustrating the potential consequences when continuously traded derivatives depend on assets whose primary markets are closed.
Despite the growth in equity contracts, HIP-3’s share of Hyperliquid’s total perpetual trading volume declined from 51% in July to 25% in September as native cryptocurrency trading recovered faster.
Market operations also remain concentrated. Trade[XYZ] accounted for 97.5% of HIP-3 trading volume in September, according to the report.
Why Is Wintermute Paying for Early Access to Order Data?
Hyperliquid is facing scrutiny over an auction system allowing trading firms to purchase early access to information about incoming buy and sell orders before those orders are processed.
A wallet linked to market maker Wintermute won approximately 76% of auctions for the highest-priority data slot during the preceding month, according to analysis by Loris Tools cited in reporting published November 12.
The mechanism provides successful bidders with a timing advantage measured in milliseconds. High-frequency trading firms can use that interval to adjust quotations or hedge anticipated exposures on other trading venues.
Wintermute CEO Evgeny Gaevoy defended the arrangement as a transparent alternative to the expensive low-latency networks and server colocation arrangements used in traditional financial markets. Hyperliquid Labs also maintained that participation is open and priority payments are publicly recorded onchain.
Critics, including DRW founder Don Wilson, have questioned whether the mechanism provides fair access and how it might be treated under US market regulations.
The auction system concerns advance access to order information and is distinct from mechanisms that prioritize the processing of a firm’s own orders. Winning auction slots does not, by itself, establish manipulative trading or improper execution.
Investor Takeaway
The concentration of priority-data auction wins creates a market-structure issue as Hyperliquid attracts institutional participants. Public auctions make the allocation of speed advantages observable, but transparency alone does not establish that smaller trading firms can compete on equivalent terms.
What Does the Growth Mean for HYPE and Institutional Adoption?
The Hyperliquid Research Collective reported that the protocol’s Assistance Fund spent $148.7 million purchasing HYPE during Q3, 5.7% more than in the previous quarter. However, the number of tokens acquired fell 26.4% because the average purchase price increased to $72.93.
The figures illustrate how higher token prices can reduce the quantity purchased even when the dollar amount allocated to buybacks increases.
Institutional interest in the infrastructure is also expanding. Kraken parent Payward has proposed operating a regulated perpetual futures venue using HIP-3, while Hyperliquid Strategies has sought US futures commission merchant registration through subsidiary HypeStrat Markets.
Neither initiative constitutes authorization for unrestricted US access to Hyperliquid’s existing decentralized exchange. The proposed services remain dependent on the applicable regulatory approvals.
For Hyperliquid, the next test is whether higher open interest, stronger equity-linked trading and institutional adoption produce durable trading revenue while the platform addresses the operational and market-access questions associated with its expansion.
Investor Takeaway
HYPE investors have three distinct factors to monitor: recurring protocol revenue, the number of tokens purchased through buybacks and adoption by regulated market operators. Rising trading activity benefits the platform’s economics, but it does not guarantee proportional growth in token purchases or future token prices.
