Hyperliquid revenue drops by 30%, behind the scenes, the perpetual DEX market is undergoing a phased adjustment

Hyperliquid’s December revenue reached $61.24 million, down 32.4% month-over-month. At first glance, this number might seem alarming, but when viewed in the context of the entire perpetual DEX market, it is actually a normal phase of fluctuation. The key point is that even amidst this decline, Hyperliquid remains the industry leader, and the platform’s fundamentals are much more solid than they appear.

Revenue Decline Is a Market-Wide Phenomenon, Not Unique to Hyperliquid

The month-over-month decrease in revenue from November to December directly reflects what the market is experiencing. According to the latest news, this period coincides with the Christmas holiday and a time of increased market volatility, leading to naturally lower trading activity. Reports indicate that the entire perpetual DEX sector is undergoing similar adjustments, not just Hyperliquid.

Data shows that the main reasons for the decline are the total trading volume and user activity dropping in December. However, such declines are often cyclical rather than trend-based. The platform’s operational capabilities and market position remain unchanged.

Compared to New Competitors, Hyperliquid’s Fundamentals Are More Robust

Recently, new competitors like Lighter have emerged, prompting a re-evaluation of the perpetual DEX landscape. But a deeper comparison reveals that Hyperliquid’s fundamentals are much healthier.

Based on detailed analysis of relevant information:

The ratio of 1.72 for Hyperliquid indicates more rational trading behavior, with users genuinely engaging in trading rather than just volume farming. Lighter’s 7.07 suggests a lot of short-term “one-touch” behaviors, raising questions about sustainability.

Platform Profitability Remains Strong

Although revenue declined month-over-month, Hyperliquid’s profitability has not weakened. According to the latest news, in the past 24 hours, Hyperliquid repurchased 42,420 HYPE tokens at an average price of $25.80 (about $1.09 million) and burned 1,800 tokens.

What does this buyback and burn mechanism indicate? It shows that even in months with declining revenue, the platform still has sufficient cash flow to conduct buybacks. This is not something a weak project can do. In contrast, platforms with a “free-riding” user mentality simply cannot make such moves.

Market Position Is Stable, Competition Landscape Is Set

According to reports, the CLOB model (used by Hyperliquid) has already captured about 70-75% of the perpetual DEX market. This is not because of the latest technology or strongest marketing, but because the CLOB model provides independent pricing authority, which is crucial for professional traders and institutions.

While AMM models (adopted by new platforms like Lighter) are innovative, they fundamentally rely on oracles to carry CEX prices, which can become bottlenecks during major market movements. The market has already spoken with its feet.

Summary

Hyperliquid’s December revenue decline is more a reflection of market cycle adjustments rather than a sign of declining platform competitiveness. From market share, fundamentals, and profitability perspectives, Hyperliquid’s industry position remains solid. Short-term revenue fluctuations do not alter the long-term market landscape.

For those following this sector, it is important to distinguish between “short-term volatility” and “long-term trends.” The current decline may simply be a part of a larger cycle. When market activity rebounds, this number will likely bounce back. The key is whether the platform can maintain operational capacity and user stickiness during this adjustment period. From this perspective, Hyperliquid’s performance is trustworthy.