According to VanEck's data, the widespread adoption and use of the decentralized derivatives trading platform Hyperliquid led to a significant increase in its network revenue in July, primarily at the expense of Solana.
In July, Hyperliquid accounted for 35% of total blockchain revenue, a growth particularly attributed to the market share shift from Solana, Ethereum, and BNB chains, as noted by VanEck researchers in the monthly crypto report.
Matthew Sigel, head of digital asset research at VanEck, along with analysts Patrick Bush and Nathan Frankovitz, noted that Hyperliquid has leveraged Solana's market missteps, winning users with its simple yet powerful product.
"Hyperliquid has attracted high-value users from Solana and has successfully retained them."
In contrast, Solana has been struggling due to reliability issues and failure to upgrade its core software as planned, while Hyperliquid has capitalized on these weaknesses by providing an exceptional derivatives trading user experience.
"Solana has not made significant improvements in user experience, especially in perpetual futures trading, while Hyperliquid offers a better product."
Hyperliquid's open interest surged.
According to the Our Network report, Hyperliquid is becoming a leader in on-chain perpetual futures trading.
The total open interest in July reached $15.3 billion, a year-on-year increase of 369%, with over $5.1 billion of USDC having been cross-chain transferred.
The Phantom Wallet's in-app perpetual contract integration drove $2.66 billion in trading volume, $1.3 million in fees, and 20,900 new users in July.
Cryptocurrency perpetual futures are derivative contracts that allow traders to speculate on cryptocurrency prices without an expiration date.
HYPE price reached an all-time high in July.
The platform's native token HYPE has also seen an increase, reaching an all-time high of $49.75 on July 14, up from just over $10 in early April.
In contrast, Solana's native token SOL has dropped 44% since its all-time high in January, largely driven by the memecoin craze.
HYPE fell 3% to $37.38 on the day as the overall market declined.