It’s easy to see why crypto investors are so excited about Hyperliquid (HYPE +2.28%). For the year, it’s up a resounding 260% and now ranks among the top 10 cryptocurrencies in the world by market cap. Even better, the HYPE token recently hit a new all-time high of $92 on Sept. 18.
To put that into context, Bitcoin still trades at a steep 36% discount to its all-time high of $126,000 in October. It now looks unlikely to reclaim the $100,000 level by the end of the year.
On the surface, then, Hyperliquid and Bitcoin appear to be headed in very different directions. Is it really the case that you should forget about Bitcoin and buy Hyperliquid instead?
The perpetual futures market is getting crowded
Hyperliquid is a decentralized cryptocurrency exchange that has skyrocketed in popularity, largely due to its ability to offer perpetual futures contracts to risk-seeking crypto traders.
These perpetual futures (known as “perps”) allow for massive leverage, which helps amplify overall returns. Moreover, they enable traders to bet on both the upward and downward movement of a specific cryptocurrency, so you can (theoretically) make money in both bear and bull markets.
Image source: Getty Images.
Until mid-2026, these perpetual futures were largely banned in the U.S. market due to their perceived risk. That changed at the end of May, when the Commodity Futures Trading Commission (CFTC) gave the green light for trading in perpetual futures.
Immediately, prediction market Kalshi jumped into the fray. In addition to Bitcoin, it now offers perpetual futures contracts on 17 other cryptocurrencies (including Hyperliquid). As can be imagined, they were a hit from Day 1.
Now, plenty of other competitors want in on the action. Two of the most prominent names include Robinhood Markets and Coinbase Global. This makes me think that the perpetual futures market is getting too crowded.
Hyperliquid’s entry into the U.S. market
U.S. customers are still banned from using the Hyperliquid trading platform, which is based in Singapore and does not yet have regulatory approval to operate in the U.S. While President Donald Trump has endorsed Hyperliquid bringing its operations to the U.S., plans are still pending final regulatory approval.
Today’s Change
(2.28%) $2.10
Current Price
$94.30
Key Data Points
Market Cap
Day’s Range
$89.91 – $93.89
52wk Range
$20.52 – $94.48
Volume
901.7M
For now, Hyperliquid has found a clever workaround: It has partnered with Payward, the parent company of the Kraken cryptocurrency exchange, to offer perpetual futures trading to a limited number of U.S. customers. Trades occur on the Hyperliquid blockchain platform, but are cleared and settled on Bitnomial, a U.S.-regulated cryptocurrency exchange and clearinghouse owned by Payward.
For most retail investors, though, won’t it be easier to use platforms they already know and recognize — such as Robinhood, Coinbase, and Kalshi — for their perpetual futures trading?
That’s why I’m not as bullish on Hyperliquid’s future prospects as others are. It may have the first-mover advantage, but its economic moat simply is not wide or deep enough to entice me. As the gap between Hyperliquid and its rivals narrows, it will likely struggle to outperform Bitcoin over the long haul.
