Hyperliquid's perpetual contract trading volume reached a new high of $248 billion in May, accounting for over 10% of Binance's trading flow.

In the perpetual contract market, trading volume is seen as an important indicator of a platform's relative dominance, and Hyperliquid is gradually eroding Binance's long-held market dominance, a trend that has become increasingly evident. The following content is excerpted from The Block's (Data and Insights) newsletter.

Hyperliquid set a new monthly record for perpetual contract trading volume in May, with a total trading amount exceeding $248 billion, a 51.5% increase from April's $187.5 billion.

For reference, Hyperliquid's perpetual contract trading volume in May 2024 was only $26.3 billion, with an astonishing year-over-year growth of 843%. This explosive growth highlights its dominance in the on-chain perpetual contract sector, with its success attributed to blending CEX-level performance with native crypto infrastructure.

Additionally, the monthly perpetual contract trading volume ratio of Hyperliquid to the centralized exchange Binance has also climbed to a historic high of 10.54%, surpassing the previous high of 9.76% set in April.

This indicator reflects the relative competitiveness of various platforms in the overall perpetual contract market, and Hyperliquid's challenge to Binance's long-term dominance is becoming increasingly hard to ignore. Key factors driving Hyperliquid's continuous growth include its user experience nearing that of CEX standards while avoiding custody risks, and the push from its second-quarter points program, which attracted a large number of traders following the huge success and profits from the first-quarter airdrop.

This trend has also driven the ratio of total trading volume between decentralized exchanges (DEX) and centralized exchanges (CEX) for perpetual contracts to approach historical highs in recent months. In May, this ratio was 6.84%, slightly lower than the historical peak of 7.06% set in February. The average value of this ratio year-to-date is 6.7%, significantly above historical levels.

In 2022, the global market share of DEX perpetual contracts was less than 2%; this figure is expected to surpass 5.19% by mid-2024 and continue to stabilize above 6.8% in 2025. If the current trend continues, achieving a double-digit market share (over 10%) within the year seems within reach as DEX infrastructure continues to narrow trading spreads and integrates native stablecoin deposit channels.