Once-dominant player in on-chain perpetuals faces growing competition
The on-chain perpetuals market is witnessing a dramatic shake-up as Hyperliquid, once the dominant player in decentralized perpetual futures, loses its commanding lead to rivals Aster and Lighter.
According to data from pseudonymous Dune Analytics researcher @uwusanauwu, Hyperliquid’s share of trading volume has collapsed from 71% in May to just 38% today. In the same period, Lighter (backed by a16z) and Aster (backed by Binance Labs) have seen their market shares surge to 16.8% and 14.9%, respectively.
Perpetual futures are a type of derivative contract without an expiry date, enabling traders to speculate on crypto asset price movements indefinitely. These products use a funding rate mechanism to keep contract prices aligned with spot market prices.
The on-chain perpetuals market ensures transparency by executing trades directly on blockchain networks. This sector has exploded in size, with cumulative trading volume reaching nearly $700 billion in the last four weeks and $42 billion processed in the past 24 hours alone.
From just two protocols in 2022, the space now boasts over 80 competitors, illustrating how crypto’s low barriers to entry allow rapid innovation—and cutthroat competition.
Hyperliquid vs. Aster: a growing rivalry
The battle for dominance has also become personal. Last week, Hyperliquid listed Aster’s native token ASTR, offering users the ability to long or short with 3x leverage. Aster swiftly retaliated by launching Hyperliquid’s HYPE perpetuals with 300x leverage, escalating what some market watchers are calling a “protocol war.”
This tit-for-tat strategy highlights how competition is no longer just about market share but also about symbolic dominance and community attention.
While Hyperliquid still leads, its shrinking control reflects a broader market trend: early leaders in decentralized finance (DeFi) often struggle to maintain dominance as new players attract liquidity and traders with more aggressive incentives and features.
With over $700 billion in recent trading activity and dozens of new entrants, the perpetuals sector is shaping up to be one of DeFi’s most contested arenas in 2025.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.