Hyperliquid: The Emerging Rival to Binance, Says Jump Trading CIO

Hyperliquid, a decentralized exchange (DEX), is emerging as a significant competitor to the well-established Binance platform, according to insights from Jump Trading’s CIO, Dave Olsen. The DEX is gaining traction in the cryptocurrency market, particularly in Bitcoin perpetual contracts, and has the potential for substantial growth.

Key Takeaways

Hyperliquid is recognized as a significant competitor to Binance by Jump Trading’s CIO.
The DEX has rapidly gained market share in Bitcoin perpetual contracts, now ranking third.
Hyperliquid’s native token, HYPE, has experienced over a 300% increase since April.
The current trend shows DEXes handling a larger proportion of total crypto trading volume.

Hyperliquid and Its Growing Importance

During the 2025 Coinbase State of Crypto Summit, Dave Olsen, the Chief Investment Officer at Jump Trading, noted that Hyperliquid is "turning heads" within the industry. He emphasized that Hyperliquid is the first serious challenger to Binance, pointing out how it is exposing regulatory gaps that could affect U.S. participation in the market.

Market Position of Hyperliquid

Hyperliquid's rising influence is particularly evident in the Bitcoin perpetual market. As of mid-May, it secured the fourth position, trailing behind OKX and Bybit, while Binance remained at the forefront with the highest Bitcoin Open Interest (OI). Fast forward to June, Hyperliquid's BTC OI has skyrocketed to almost $3 billion, placing it as the third-largest market after surpassing OKX. This achievement marks Hyperliquid as the only top DEX thriving in a market dominated by centralized exchanges (CEX).

Bybit currently holds the second position with an OI of $5.5 billion, while Binance leads with $8 billion in Bitcoin perpetual contracts. Industry expert Ryan Watkins from Syncracy Capital suggests that the perpetual market could grow to a $100 billion opportunity soon, which could further benefit Hyperliquid.

DEX Growth and Market Dynamics

The growth of DEX platforms like Hyperliquid is underscored by the increasing DEX to CEX trading volume ratio. Currently, DEXes account for 27% of the total trading volume, a significant rise from 10% in 2024. This upward trend reflects the changing dynamics in cryptocurrency trading.

HYPE Token Performance

The recent developments have positively impacted Hyperliquid's native token, HYPE. Since April, HYPE has recovered over 300% and achieved new record highs. Interestingly, Tony G Co-Investment Holdings has become the first corporate treasury entity to acquire HYPE, purchasing 10,000 tokens for $438.82K.

This raises an intriguing question: which token offers better short-term investment prospects: HYPE or Binance’s BNB? Analysis of the HYPE/BNB ratio reveals that HYPE has outperformed BNB by over 230% since its lows in April. Even with recent market fluctuations, HYPE may provide better return opportunities, with current trading at $38.

As the competitive landscape evolves, Hyperliquid’s continued growth could signify a shift in the market dynamic, providing investors with promising prospects in the decentralized finance space.