Crypto derivatives platform Hyperliquid is increasingly attracting attention from professional traders and hedge funds as a round-the-clock venue for expressing views on everything from digital assets and commodities to equity indices and private-market companies, according to a report by the Wall Street Journal.
Founded in 2023 by former Hudson River Trading quantitative trader Jeff Yan, Hyperliquid has grown rapidly by offering perpetual futures contracts that can be traded continuously, allowing market participants to react to news and market-moving events outside traditional exchange hours.
The platform’s appeal was highlighted during a period of heightened geopolitical tensions earlier this year, when traders used Hyperliquid to adjust positions immediately following major developments in the Middle East. Unlike conventional futures markets, which operate within defined trading sessions, Hyperliquid’s markets remain open at all times, enabling investors to enter or exit positions whenever news breaks.
At the centre of the platform’s growth is the increasing popularity of perpetual futures, derivative contracts that have no expiry date and often offer significant leverage. Traders can use these products to gain exposure to a wide range of underlying assets, including cryptocurrencies, stock indices, commodities and selected private companies.
Hyperliquid’s rise reflects a broader trend toward the convergence of digital asset markets and traditional finance. The exchange has attracted interest from investors seeking access to instruments linked to assets that are not always easily available through conventional channels. Among the most actively traded contracts are those tied to high-profile private companies, including aerospace company SpaceX.
The business has expanded quickly despite operating with a relatively small team. Hyperliquid Labs, the development company behind the platform and its associated blockchain network, reportedly employs only a handful of staff. Nevertheless, the ecosystem has generated substantial revenue and built a sizeable following around its native HYPE token, which has seen strong appreciation over the past year.
A key differentiator for Hyperliquid is its emphasis on self-custody. Following the collapse of FTX, Yan has argued that users increasingly value retaining direct control over their assets rather than relying on exchanges to hold funds on their behalf. This philosophy has become a central feature of the platform’s identity and marketing.
The exchange has also cultivated a highly engaged user community. Traders and developers actively contribute ideas, create analytics tools and build complementary products around the blockchain, helping to strengthen the network effect that has supported Hyperliquid’s expansion.
Regulatory developments may further influence the platform’s trajectory. While Hyperliquid currently restricts access for US residents, recent moves by US regulators to establish frameworks for perpetual futures trading could pave the way for broader adoption of similar products within regulated markets. Several established financial and crypto firms have already begun expanding their perpetual futures offerings in response.
However, the growth of perpetual futures has also raised concerns among regulators and investor advocates. The products can amplify both gains and losses through leverage, creating significant risks for inexperienced traders. Market volatility has periodically resulted in large-scale liquidations across the crypto sector, highlighting the potential downside of highly leveraged positions.
