Hyperliquid's Record Trading Volume Masks Widespread User Losses in DeFi

The reality hits hard: 86% of Hyperliquid traders are in loss, yet the platform is setting records in trading volume. Despite an astonishing growth of $188 billion in a month, most users are losing money. Only a few selected traders managed to earn millions, while thousands went into the red. This article explores why Hyperliquid continues to dominate in DeFi, identifies the main winners, and explains the role ofairdrops.

Reigning in DeFi: Hyperliquid's Contradictory Success Amidst User Losses

Hyperliquid's impressive trading volume growth, reaching $188 billion in just a month, suggests strong user engagement and market interest. However, the fact that 86% of traders are experiencing losses indicates a high-risk environment, possibly driven by volatile asset prices or platform incentives that favor early or strategic traders.

This paradox raises questions about the platform's sustainability and the distribution of profits among users. The few who have earned millions exemplify the opportunity for high returns but also highlight the peril for the majority, who are in the red.

Despite these challenges, Hyperliquid maintains a dominant position in the DeFi space, likely due to its innovative features, liquidity incentives, and community engagement. The role ofairdrops, often used as marketing tools or profit-sharing mechanisms, further strengthens user loyalty and attracts new participants, fueling the platform's growth.