Massive adoption of decentralized derivatives exchange Hyperliquid led to a huge increase in Hyperliquid network revenue in July, largely at the expense of Solana, according to VanEck.
In July, Hyperliquid earned 35% of all blockchain revenue, with growth coming specifically at the expense of Solana, as well as Ethereum and BNB Chain, VanEck researchers wrote in a monthly crypto recap report.
“Hyperliquid was able to capture much of Solana’s momentum, and likely Solana’s market capitalization, because it offers a simple, highly functional product,” VanEck head of digital assets research, Matthew Sigel, and fellow analysts Patrick Bush and Nathan Frankovitz said, adding:
“Hyperliquid has poached high-value users from Solana and has retained them.”
While Solana has struggled with reliability issues and failed to meet production deadlines for core software upgrades, Hyperliquid has capitalized by providing a superior user experience in derivatives trading, they said.
“Solana has not delivered meaningful improvements to boost its user experience, specifically in perpetual futures (perps) trading, and Hyperliquid stepped up with a better product.”
Hyperliquid open interest surges
“Hyperliquid is emerging as the leading onchain perps venue,” reported Our Network in a newsletter seen by Cointelegraph.
Open interest reached $15.3 billion in July and is up 369% year-to-date, with more than $5.1 billion USDC (USDC) having been bridged in, it added.
Phantom Wallet integration, which offers in-app perps, drove $2.66 billion in volume, $1.3 million in fees, and 20,900 new users to Hyperliquid in July.
Related: Hyperliquid reimburses $2M to crypto traders after API outage
Crypto perpetual futures are derivative contracts that let traders speculate on cryptocurrency prices without expiration dates.
HYPE prices hit July all-time high
The platform’s native token (HYPE) has also rallied, hitting an all-time high of $49.75 on July 14 from a low of just over $10 in early April.
Solana’s native token (SOL) has lost 44% since its January all-time high, which was primarily driven by the memecoin frenzy.
HYPE was trading down 3% on the day at $37.38 in a broader market retreat, at the time of writing.
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