Hyperliquid (HYPE): Current Position and Future Prospects Post-2025

Following a tumultuous end to 2025, marked by significant volatility and the sudden cryptocurrency crash on October 10, Hyperliquid (HYPE)—one of the largest decentralized exchanges (DEXs)—has faced notable challenges as it enters 2026. As January nears its end, market research firm GLC has published a critical report analyzing Hyperliquid's current standing and evaluating its recovery metrics.

Key Takeaways

Post-Crash Analysis: Hyperliquid's trading volume fell by 44.3% after the October 10 crash, while open interest dropped by 35.7%.
Signs of Recovery: Despite initial declines, trading volume has risen by 59.2% year-to-date, and open interest has increased by 24.7%.
Market Rebound Potential: Positive trends indicate traders are opening larger positions, suggesting a recovery may be underway.
Volume and Open Interest Growth: Recent data shows a bullish trend, driven significantly by one active deployer, XYZ.
Upcoming Features: The introduction of portfolio margin on the testnet may unlock new use cases and increase trading volume.

Hyperliquid

Impacts of the October 10 Downturn

The GLC report reveals that Hyperliquid’s trading volume and open interest experienced a significant drop after the October 10 liquidation event. The trading volume sank from $10.17 billion to $5.66 billion—a decrease of 44.3%. Open interest similarly fell, from $14.75 billion to $9.48 billion, reflecting a 35.7% decline.

However, there are encouraging signs. Since December 1, 2025, trading volume has slightly decreased by 3.2%, while open interest has surged by 45.6%. Year-to-date metrics offer a brighter outlook: trading volume increased by 59.2%, climbing from $3.56 billion to $5.66 billion, and open interest rose by 24.7%, up from $7.60 billion to $9.48 billion.

Even though open interest is bouncing back, trading volume has not kept pace. This discrepancy has caused the volume-to-open interest (OI) ratio to decline from 0.90 on December 1 to 0.60 by mid-January, likely due to reduced market volatility impacting trading activities. Still, it seems traders are starting to open larger positions on Hyperliquid, and the recovery trend is an encouraging sign.

The report suggests that open interest can be a more dependable indicator of trader confidence and long-term positioning, while trading volume often reacts to wider market conditions. Although current metrics remain below pre-October 10 levels, the overall trend hints at a recovery.

Will 2026 Bring a Remarkable Comeback for Hyperliquid?

The latest data on volume and open interest appears bullish. The 7-day average volume has surged by over 130% year-to-date, largely influenced by a single active deployer, XYZ, which contributes to approximately 80% of that volume. Additionally, the 7-day average open interest has increased by over 60%.

Hyperliquid is also reclaiming market share from centralized exchanges (CEXs). It currently commands about 14.6% of Binance’s open interest, gaining momentum against competitors such as Bybit and OKX.

Hyperliquid

A pivotal factor for the platform’s recovery this year could be the introduction of portfolio margin. Now operational on testnet, this feature will allow traders to borrow and lend against their collateral, enabling various new use cases. Historical data from other exchanges, particularly Bybit, indicates that adding portfolio margin can be a significant growth driver, likely leading to a substantial rise in trading volume for Hyperliquid.

Overall, core metrics are steadily improving, bolstered by upcoming catalysts such as increased adoption of equity perpetuals and the introduction of portfolio margin. According to GLC's report:

"If improving market conditions align with these catalysts and potentially usher in another S3 season bringing new traders, Hyperliquid could surprise the market once more."

Hyperliquid

As of now, Hyperliquid's HYPE token is trading at approximately $21.84, reflecting a 9% decline over the last 24 hours and positioning the altcoin 63% below its all-time high of $59.30.

Featured image from OpenArt, chart from TradingView.com.