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The new layer-1 network, which is focused on derivatives trading, continues to gain traction, while Ethereum faces a sharp revenue decline.
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Layer-1 blockchain network Hyperliquid has flipped Ethereum in seven-day revenues, according to data from DefiLlama.
Hyperliquid clocked approximately $12.8 million in protocol revenues over the past seven days as of Feb. 3, compared with around $11.5 million for the Ethereum network, according to DefiLlama.
The flip in revenue reflects Hyperliquid’s rapid ascent as a venue for trading perpetual futures, or “perps,” and Ethereum’s difficulty competing against upstart blockchains with faster transaction settlements and lower fees.
Perpetual futures are derivatives that let traders buy or sell an asset at a future date with no expiration.
As of Feb. 3, Hyperliquid has clocked approximately $470 million per day in transaction volume, nearly double its daily transaction volume at the start of the year, according to DefiLlama.
Hyperliquid has outpaced Ethereum in 7-day revenues. Source: DefiLlama
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Ethereum’s challenges
Hyperliquid still lags Ethereum’s roughly $4.7 billion in daily volume as of Feb. 3, the data shows. However, Ethereum experienced a sharp dropoff in revenue in 2024 after the network’s March Dencun upgrade cut transaction fees by approximately 95%.
“There wasn’t enough volume to make up for the fee decline,” Matthew Sigel, VanEck’s head of digital asset research, said in September.
Meanwhile, “Other layer-1s are catching up with Ethereum regarding apps, use cases, fees and amount staked,” Aurelie Barthere, principal research analyst at Nansen, told Cointelegraph on Feb. 1.
In January, Solana surpassed Ethereum in 24-hour decentralized exchange trading volume, boosted by memecoin trading activity. As of Feb. 3, Solana sees more than double Ethereum’s volume, with around $8.9 billion in daily transactions versus Ethereum’s roughly $4 billion, according to DefiLlama.
The growing trading volume highlighted the Solana network’s expanding role in decentralized finance and its position as a competitor to Ethereum.
Hyperliquid’s volume has risen since the start of 2025. Source: DeFILlama
Rise of HYPE
Launched in 2024, Hyperliquid’s flagship perps exchange has captured 70% of the market share, surpassing rivals such as GMX and dYdX, according to a January report by asset manager VanEck.
Hyperliquid touts a trading experience comparable to a centralized exchange, featuring fast settlement times and low fees, but is less decentralized than other exchanges.
The layer-1 network has become one of the most valuable blockchains since launching its HYPE token in a November airdrop. As of Feb. 3, HYPE trades at a fully diluted value of around $25 billion, according to CoinGecko. It has gained more than 500% since launching on Nov. 29.
However, Hyperliquid’s nascent smart contract platform has “yet to attract much of a developer community,” VanEck said.
In 2025, Hyperliquid aims to launch an Ethereum Virtual Machine smart contract platform, which VanEck says is crucial for diversifying its revenue base and justifying HYPE’s lofty valuation.
“If Hyperliquid is unable to meet the growth expectations of its community, the prisoner’s dilemma facing many newly rich $HYPE holders may quickly unravel,” the asset manager wrote in January.
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This article first appeared at Cointelegraph.com News
