Hyperliquid is beating ethereum in trading volume on some days as big money rotates, says FalconX
Institutional investors are ditching range-bound bitcoin and ether for Hyperliquid as the decentralized platform wins over hedge funds with massive liquidity and early access to hot markets, according to Joshua Lim, head of markets at FalconX.
What to know:
- Hyperliquid’s HYPE token and derivatives platform have become a major liquidity hub for hedge funds and institutional investors seeking trades beyond bitcoin and ether, according to FalconX.
- With bitcoin and ether seen as range-bound amid macro uncertainty and ETF outflows, speculative capital is rotating into altcoins such as HYPE, Zcash and AI-linked tokens, driving higher volatility there.
- Hyperliquid is drawing interest for its early, hard-to-access markets like pre-IPO perpetuals and tokenized stocks, fueling a broader bet that crypto-native venues could evolve into 24/7 platforms for trading a wide range of financial assets despite regulatory risks.
The decentralized derivatives exchange, which launched its HYPE token last year, has become a significant source of trading activity for FalconX clients. Lim said demand for Hyperliquid products has grown as investors search for opportunities beyond the largest cryptocurrencies.
“For things like HYPE, where there’s broad consensus that it’s an allocatable asset, there’s a ton of liquidity. It’s not hard to trade it,” Lim said in an interview. “HYPE is probably on some days more active than Ethereum for us.”
The comments come as bitcoin and ether (ETH) have struggled to attract fresh inflows while investors focus on a smaller group of alternative crypto assets. Lim said FalconX expects major cryptocurrencies to remain range-bound over the next few months because of macroeconomic uncertainty, ETF outflows and competition from other speculative investments.
