Hyperliquid’s RWA perps boom is eating into the revenue that backs HYPE

§ 01 Executive Snapshot

• What: Hyperliquid's revenue declines despite record open interest in perpetual futures.
• Who: Hyperliquid, Trade.xyz, institutional holders like Multicoin Capital and Bitwise.
• Why it matters: The platform's fee-sharing program is impacting its revenue while it remains a major player in the perpetual futures market.

§ 02 Key Developments

• Hyperliquid's open interest reached approximately $11 billion, representing 9% of global perpetual positions.
• Quarterly gross revenue has dropped about 43% from its 2025 peak, falling from $357 million to about $202 million in Q2 2026.
• Builder-deployed markets under HIP-3 now account for roughly half of Hyperliquid's trading volume.

§ 03 Strategic Context

• The shift towards builder-deployed markets has concentrated operational risks and reduced Hyperliquid's trading fee revenue.
• Hyperliquid's revenue model is heavily reliant on its core exchange business, making it vulnerable to market fluctuations and competition.

§ 04 Strategic Implications

• Immediate market consequences include reduced earnings impacting HYPE's buyback program and overall token value.
• Long-term implications suggest that Hyperliquid's dependency on a single deployer (Trade.xyz) may affect its stability and growth trajectory.

§ 05 Risks & Constraints

• Regulatory scrutiny from authorities like Singapore's MAS and the CFTC could pose execution challenges.
• Increased competition from platforms like Robinhood Chain could further erode Hyperliquid's market share.

§ 06 Watchlist / Forward Signals

• Key developments to watch include future earnings reports and the performance of builder-deployed markets.
• Upcoming regulatory decisions could significantly impact Hyperliquid's operations and market positioning.