Hyperliquid's Ambitious Plans Under Scrutiny Amid Decentralization Concerns

Ark Invest has expressed doubts about Hyperliquid's ability to achieve its 'house of all finance' vision, despite growing traction. The firm questioned how the platform wants U.S. market access yet has limited decentralization and nearly non-existent spot trading.

Lorenzo Valente, head of crypto research at Ark Invest, pointed out that Hyperliquid's regulated U.S. pathway via Kraken is 'slightly different' from its broader permissionless market. He noted that this means the liquidity cannot be commingled with the rest of the platform, likely resulting in a worse product.

Hyperliquid has expanded into native borrowing, prediction markets, and real-world asset perps, but Ark Invest remains skeptical about its ability to become a fully-fledged 'everything exchange'. The platform's current limitations, including limited decentralization and spot trading, may hinder its growth and adoption in the U.S. market.