Hyperliquid is becoming a leading platform for trading crypto derivatives, particularly attracting the attention of large investors, often referred to as whales.
Support for high leverage, fast transactions, low fees, reliable security, and a dominant market share make Hyperliquid attractive to whales.
Hyperliquid controls over 60% of the perpetual contract market.
Hyperliquid has recently become a prominent name among platforms for trading perpetual futures. According to Dune, in the last 24 hours, the trading volume of perpetual futures on Hyperliquid reached 62%, exceeding $10.8 billion. Its weekly trading volume also ranks first, surpassing $36.3 billion. With such impressive performance, Hyperliquid's perpetual futures currently hold over 60% market share among platforms for trading perpetual futures. It is important to note that Hyperliquid's open interest recently reached a record level of over $4.9 billion. This figure reflects high liquidity and demonstrates significant trust from the trading community, especially whales, in Hyperliquid.
"After initial challenges with leveraged products in futures trading, it turned out that Hyperliquid stabilized quite well, becoming the number one platform among decentralized futures exchanges," commented user X.
Exciting Actions of Large Investors
Whale trading activity on Hyperliquid has been vibrant, with numerous large transactions. According to OnchainLens, crypto expert James Winn currently holds several long positions on Hyperliquid, with a total floating profit exceeding $39 million.
These positions include PEPE (10x leverage), TRUMP (10x), BTC (40x), and FARTCOIN (5x). He earned over $46 million in just two months on Hyperliquid due to high-leverage positions in Bitcoin and meme coins like PEPE.
Separately, one whale recently deposited $10 million USDC into Hyperliquid, opening short positions on BTC, SOL, and ETH with 5x leverage. Another whale contributed $8.58 million USDC into Hyperliquid and traded ETH with 2x leverage.
Previously, ZachXBT identified a whale using 50x leverage on Hyperliquid as British cybercriminal William Parker. Furthermore, one whale trader opened a short position with 40x leverage on BTC worth $423 million on Hyperliquid, attracting the attention of the entire market and causing a wave of liquidations.
These transactions highlight the preference of whales for Hyperliquid and reflect the high level of risk they are willing to take on the platform. However, some suspiciously high leveraged trades on Hyperliquid have raised concerns about possible money laundering. So, what makes Hyperliquid so appealing to whales?
Why is Hyperliquid the best choice?
Whales prefer Hyperliquid due to a number of platform advantages. One of the main reasons is its ability to provide high leverage and flexibility in trading. Hyperliquid allows users to trade with leverage from 3x up to 40x and even up to 50x.
This particularly attracts large investors who are often looking for high-profit opportunities despite significant risks.
Furthermore, the platform uses the HyperBFT blockchain, a proprietary consensus mechanism that processes transactions in less than a second. This speed allows whales to execute large trades without delays. Hyperliquid also stands out for its low transaction fees. In addition, its dominant market share plays a crucial role in attracting whales. High liquidity helps reduce transaction costs and slippage risks, which are key concerns for whales when trading large volumes.
Although Hyperliquid offers numerous advantages for whales, it also carries significant risks. Trading with high leverage often leads to substantial losses. The delisting of JELLY is a typical example. HyperLiquid faced $230 million in liabilities after the short squeeze caused by JELLY whales manipulating its price.
HyperLiquid responded to the JELLY squeeze by returning funds to affected traders and implementing stricter security measures to prevent future incidents.
Additionally, regulatory pressure is another factor to consider. Gracy Chen, CEO of Bitget, shared insights regarding the platform's KYC/AML issues.
"Although Hyperliquid positions itself as an innovative decentralized exchange with an ambitious vision, it operates more like an offshore CEX without KYC/AML, allowing illicit flows and malicious activities," said Gracy Chen.
However, thanks to its leading position and continuous technological advancements, Hyperliquid remains the best choice for whales, especially in the growing crypto derivatives market.#BinanceSquare #Write2Earn #Binance #TradeStories #CryptoComeback $PEPE
