Hassan Maishera
TL;DR
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Hyperliquid’s total open interest reached $14.3 billion, within 3% of its level before the October 2025 crash.
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HIP-3 initially drove the recovery, accounting for about 30% of Hyperliquid’s six-month open-interest growth.
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More recent growth has shifted toward Hyperliquid’s core cryptocurrency perpetual markets.
Hyperliquid’s total open interest climbed to $14.3 billion on Sunday, bringing the decentralized derivatives platform close to levels last seen before its severe October 2025 crash.
The latest figure is within 3% of the $14.7 billion recorded on October 9, one day before the market downturn commonly called the 10/10 crash.
On October 10, 2025, Hyperliquid’s open interest fell by approximately 56% in a single day, dropping from $14.7 billion to $6.5 billion as leveraged positions were closed or liquidated.
The subsequent recovery occurred in two phases. HIP-3 markets initially accounted for a substantial portion of the rebound, but recent growth has increasingly shifted toward Hyperliquid’s core cryptocurrency perpetual futures.
That change is particularly important for the HYPE token because the two market categories distribute trading fees differently.
HIP-3 Drove Hyperliquid’s Initial Recovery
HIP-3 played a central role in the first phase of Hyperliquid’s open-interest recovery.
The framework allows third-party builders to create and operate their own perpetual markets using Hyperliquid’s infrastructure. Its share of the platform’s total open interest increased from 18% in March 2026 to more than 34% by August.
HIP-3 open interest reached a record of more than $4.44 billion during August. Hyperliquid’s total open interest increased by $8.47 billion over the past six months, with HIP-3 markets accounting for approximately 30% of that expansion.
This suggests that builder-deployed markets helped attract new assets, traders, and liquidity to the platform during the earlier stages of its recovery. However, the composition of that growth has begun to change.
HIP-3 contributed only 15% of Hyperliquid’s total open-interest growth over the past three months.
The divergence became more pronounced during the past month. Hyperliquid’s total open interest rose by $3.57 billion, while HIP-3 open interest declined by $119 million.
As a result, HIP-3’s share of total open interest fell from 34% one month ago to approximately 25%.
The figures indicate that the latest increase has come primarily from Hyperliquid’s core crypto perpetual futures, rather than third-party HIP-3 markets.
This represents the second phase of the platform’s recovery and may provide stronger direct support for HYPE.
Coinbase Creates New Retail Funnel
Coinbase’s integration with Hyperliquid may be one catalyst behind the renewed activity in core cryptocurrency markets.
In mid-August, Coinbase began directing users of its Base App to Hyperliquid, providing the decentralized exchange with access to a new source of retail traders.
The connection reduces the friction involved in discovering and accessing Hyperliquid from within the Base ecosystem. Increased retail participation could subsequently support higher trading volumes and open interest.
The development is significant because Coinbase operates one of the largest regulated cryptocurrency platforms in the United States. Even without directly operating Hyperliquid’s markets, routing users to the protocol can expose it to a broader audience.
Prospects for a compliant U.S. offering may also be strengthening interest in Hyperliquid.
President Donald Trump recently said the Commodity Futures Trading Commission was working on a way to bring Hyperliquid onshore within a compliant framework.
A regulated entry into the U.S. market could significantly expand Hyperliquid’s potential user base. It may also create additional opportunities for institutional participation if the platform can meet federal derivatives requirements.
However, no final regulatory structure has been announced. Any U.S. expansion would depend on licensing, compliance, and the legal framework ultimately established by regulators.
The possibility alone appears to have improved expectations surrounding Hyperliquid’s growth.
Core Markets Generate More Value for HYPE
The shift from HIP-3 toward core crypto perpetuals matters because the two market categories distribute their fees differently.
HIP-3 builders can retain as much as half of the trading fees produced by the markets they deploy. Consequently, a smaller proportion of revenue generated through these markets flows into Hyperliquid’s token-related mechanisms.
The impact was visible as HIP-3’s share of activity expanded.
Hyperliquid’s gross revenue peaked at $457 million during the third quarter of 2025 but fell to $202 million by the second quarter of 2026. Assistance Fund purchases declined from $290 million to $149 million over the same period.
These declines occurred even as HIP-3’s share of total open interest rose substantially.
Hyperliquid’s core crypto perpetual markets have a different economic structure. Nearly 97% of the fees generated by those markets are directed toward purchases of HYPE through the protocol’s Assistance Fund.
This means one dollar of open interest returning to the core perpetual platform can generate materially more direct demand for HYPE than the same amount entering through an HIP-3 builder market.
Open interest does not translate directly into fee revenue because trading frequency, leverage, and volume also matter. Nevertheless, the changing market composition may improve HYPE’s value-capture potential if core activity remains elevated.
HYPE Reaches All-Time High of $88
HYPE has rallied alongside the recovery in Hyperliquid’s core markets. The token reached an all-time high of approximately $88 at the time of writing, giving it a market capitalization of nearly $20 billion. HYPE has gained more than 50% this month.
The rally reflects renewed platform activity, increased prospects for fee-driven purchases, and optimism surrounding potential U.S. expansion.
Hyperliquid’s total open interest is now close to its pre-crash high, but the composition is more significant than the headline figure alone. Recent growth coming from core crypto perpetuals could generate stronger buyback demand than the earlier HIP-3-led recovery.
Still, open interest approaching historic levels also indicates elevated leverage. While rising exposure can strengthen trading activity and fee generation, it can increase liquidation risks if markets turn sharply lower.
