Hyperliquid Bucks Revenue Decline with Strong User Growth

Decentralized perpetuals exchange Hyperliquid reported strong growth in user and total value locked (TVL) metrics for Q2 2025, despite a decline in revenue. The platform's daily active addresses rose by approximately 35% quarter-over-quarter, while TVL grew from $1.2 billion to $1.8 billion, a 50% increase.

However, protocol revenue fell by about 18% from $105 million in Q1 to $86 million in Q2, largely due to a reduction in average fee rates and an increase in smaller trades from retail users. Hyperliquid reduced its taker fee from 0.045% to 0.035% in April 2025 to stay competitive with emerging rivals.

The growth in active addresses was driven by retail traders, who typically trade smaller sizes than institutional players. This dynamic, combined with relatively flat overall trading volume of around $250 billion per quarter, meant that lower fees on similar volume directly reduced revenue.