Hyperliquid surpasses Ethereum in liquidity and attracts major investors.

• Hyperliquid is gaining ground among institutional cryptocurrency investors.
• HYPE surpasses Ethereum in liquidity at certain times.
• Hedge funds expand their use of Hyperliquid derivatives.

Hyperliquid has been consolidating its position as one of the leading cryptocurrency trading platforms. The growth in liquidity of the HYPE token and the expansion of products offered by the network have attracted the attention of institutional investors and hedge funds, who are seeking new opportunities beyond Bitcoin and Ethereum.

According to Joshua Lim, global head of markets at FalconX, demand for products linked to Hyperliquid has increased significantly in recent months. The brokerage, which specializes in institutional cryptocurrency trading, has observed a gradual shift in capital flow towards alternative assets with greater growth potential.

“For assets like HYPE, which have broad consensus as being allocable, there’s a lot of liquidity. It’s not difficult to trade,” Lim said in an interview. “On some days, HYPE probably has more liquidity than Ethereum for us.”

The movement occurs at a time when Bitcoin and Ethereum are facing difficulties in attracting new investments. Bitcoin was trading near US$69.482 during the analyzed period, while investors showed a preference for projects linked to artificial intelligence, decentralized trading infrastructure, and other emerging trends in the sector.

According to Lim, FalconX expects the two largest cryptocurrencies to remain within a relatively stable price range in the coming months. Factors cited include macroeconomic uncertainty, outflows from ETFs, and competition from other, more speculative investment opportunities.

“What this actually means is implied volatility, so the price of options is close to historical lows,” Lim said. “People don’t think bitcoin and ether are going to move much.”

Meanwhile, several altcoins are experiencing increased market activity. According to the executive, some of the speculative capital has been migrating to projects such as HYPE, Zcash (ZEC), and Venice (VVV), as well as tokens associated with the artificial intelligence sector.

“Altcoins are moving quite a bit,” Lim said. “That’s where the speculative money is going. It’s going to things like HYPE, Zcash (ZEC), and Venice (VVV). AI-linked tokens are performing very well.”

In addition to the appreciation of the HYPE token, Hyperliquid has also attracted attention for its derivative products. The platform offers perpetual contracts linked to assets that do not yet have widely accessible markets, including pre-IPO contracts related to private companies.

“They are very good at launching things ahead of schedule,” he said, pointing to Hyperliquid’s pre-IPO perpetual contracts linked to companies like SpaceX. “We have hedge funds that have no other way to trade this with that much liquidity.”

The platform's expansion is not limited to cryptocurrencies. By 2025, Hyperliquid generated approximately US$800 million in revenue and expanded its offering to include tokenized stocks, commodities, and prediction markets. This advancement fuels expectations that the blockchain-based infrastructure could compete with traditional exchanges by offering continuous trading of various financial assets 24 hours a day, seven days a week.