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- Hyperliquid reached a record $5.25 billion in perpetual futures open interest, overtaking Bybit.
- Protocol revenue, token burns, and trading volume continue to grow alongside network usage.
- Bitcoin on-chain metrics show easing market stress, though a full bull market confirmation remains pending.
Hyperliquid has strengthened its position in the crypto derivatives market after surpassing Bybit in perpetual futures open interest, highlighting growing trader activity and increasing protocol revenue. At the same time, Bitcoin’s latest on-chain indicators suggest that market pressure is gradually easing, although analysts say a full recovery has yet to be confirmed.
The latest data points to improving sentiment across both decentralized derivatives and the broader Bitcoin market, but sustained demand will remain the key factor for long-term momentum.
Hyperliquid Sets New Open Interest Record
Hyperliquid reached a record $5.25 billion in open interest, moving ahead of Bybit’s $5.07 billion and extending its lead over several major exchanges, including HTX, Bitfinex, Kraken, and Coinbase in perpetual futures activity.
Trading volumes remained equally strong. The platform processed approximately $13 billion in perpetual trading volume over the last 24 hours, while monthly perpetual volume climbed to $196 billion, reflecting continued participation from traders.
The combination of rising trading volume and record open interest suggests market participants are keeping positions open rather than rapidly closing them. While higher open interest alone can sometimes reflect increased leverage, elevated trading activity alongside it indicates stronger market conviction rather than speculative positioning alone.
Whether Hyperliquid maintains its lead will largely depend on continued liquidity, orderly liquidations, and sustained trader engagement as competition among derivatives platforms remains intense.
Protocol Revenue and Token Burns Continue to Grow
Hyperliquid is also converting increased trading activity into protocol revenue.
Over the past 24 hours, the protocol burned roughly $643,140 worth of HYPE tokens, while distributing approximately $513,800 in protocol revenue to its Assistance Fund and token holders.
Cumulative token burns have now reached 46.18 million HYPE, valued at approximately $2.43 billion, representing 4.62% of the token’s maximum supply.
Priority fees have become another important source of revenue, generating $5.07 million since April, including $2.75 million during the past month. Together with trading fees, buybacks, and token burns, these mechanisms strengthen value capture as long as trading activity remains elevated.
Bitcoin On-Chain Indicators Show Improving Conditions
Bitcoin is also showing signs of stabilization after several weeks of market stress.
The unrealized loss ratio has declined to 35.2%, falling below the historical 40% stress threshold after reaching 42.2% in late June. The decline indicates fewer investors are currently holding Bitcoin at a loss, although the metric has rebounded from 30.4% recorded around July 21, suggesting selling pressure has not disappeared entirely.
Historical market cycles show that moving below the 40% level is often an early sign of recovery rather than confirmation of a new bull market. Previous cycles frequently experienced extended consolidation before stronger upward trends emerged.
Recovery Is Improving, but Confirmation Is Still Needed
Additional valuation metrics also point to improving conditions.
The Mayer-Puell Valuation Composite recovered from 15.77 in early July to roughly 25.4, indicating that valuation pressure has eased following a period commonly associated with accumulation.
Meanwhile, the MVRV Z-score has risen toward 0.36, suggesting Bitcoin is no longer trading at an extreme premium relative to investors’ average cost basis. The SOPR indicator remains close to one, signaling that forced selling has declined as market participants increasingly exit positions near break-even.
Despite these encouraging developments, analysts continue to view the current environment as a consolidation phase rather than the beginning of a confirmed bull cycle. Sustained ETF inflows, exchange outflows, and rising realized market capitalization remain important signals to watch before declaring a lasting recovery.
Also Read: Japanese Public Company Buys HYPE: Eole Plans $100M Yen Hyperliquid Treasury
Hyperliquid’s record open interest and rapidly expanding protocol revenue underscore the growing influence of decentralized derivatives markets. At the same time, Bitcoin’s improving on-chain metrics suggest that downside pressure is fading, even if broader market confirmation remains outstanding. Both trends indicate improving market health, but sustained participation and fresh capital will ultimately determine whether current momentum evolves into a longer-term uptrend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
