A recent analysis reveals traders on the decentralized exchange Hyperliquid are increasingly favoring non-crypto assets over traditional cryptocurrencies. Data indicates the platform’s HIP-3 segment, which includes assets like oil, gold, and silver, has a user retention rate of 64%, significantly higher than the 27% rate for crypto assets. This trend is reflected in trading volumes, with HIP-3 accounting for $15.1 billion last week. Analysts cite crypto’s volatility and the appeal of perpetual contracts as key drivers for this shift.
Traders on the decentralized exchange Hyperliquid are showing a stronger preference for the HIP-3 segment, which includes non-crypto assets like oil, gold, and silver. Recent data reveals a massive sticky base for HIP-3, with 64% user retention compared to only 27% for crypto assets.
Crypto analyst Keisan cited crypto’s extreme volatility and friendly perpetual leverage as main drivers. “Traditional assets are more pleasant to trade than crypto, which suffers from extreme volatility, market manipulation, and scam tokens,” he stated. He added that this sticky user base leads to deeper liquidity and more trading activity.
The unified platform’s 24/7 trading of different assets made Hyperliquid a beneficiary during recent geopolitical tensions. Last week, HIP-3 accounted for 33% ($15.1 billion) of overall volume, second only to Bitcoin’s $18.4 billion. On a year-to-date basis, HIP-3 dominance increased from 5% to over 30%.
BitMEX founder Arthur Hayes noted HIP-3 now drives nearly 10% of overall fees on the platform. Hayes suggested the massive adoption as a cross-asset platform could lift the platform’s HYPE token value toward $150. Since a recent crisis began, the HYPE token has rallied by 57% from $26 to $41.
Coinbase research analyst Colin Basco, while bullish, believes $42 is a key resistance level that must be cleared for a sustained rally. If that resistance is overcome, the next levels to watch would be $46 and the $50 psychological level.
