Hyperliquid's Market Share Under Threat from Regulated US Platforms

JPMorgan's analysts have sounded a warning for Hyperliquid (HYPE), citing two key challenges to its market share. The first is the rise of regulated US crypto perpetual futures platforms, which could pull liquidity away from offshore and decentralized venues.

The second threat comes from prediction market competition, with existing platforms already facing intense competition in this space.

HYPE's ETF inflows stalled in July and August after posting their largest inflows ever in May and June as a percentage of assets under management. This is in contrast to the broader crypto ETF market, which saw heavy outflows in May and June before returning to small inflows in July and August.