Liu Warns of Competition Threatening Hyperliquid's Market Share

CoinMarketCap's Head of Research Alice Liu recently discussed the cryptocurrency market on Trade Secrets. She pointed out that despite Bitcoin failing to hold above $80,000 after a recent rally, it is unlikely to revisit lower price levels.

Liu mentioned that Bitcoin tapped $81,600 in early September, an approximate 28% increase since mid-August. This move pushed the CoinMarketCap Crypto Fear & Greed Index back up to Greed from its Fear scores for most of the year.

However, Liu noted that some of the more interesting narratives are unfolding outside Bitcoin, particularly in tokenized real-world assets and perpetual futures markets.

Regarding Hyperliquid, a platform that offers tokenized perps, Liu stated, 'For Hype [Hyperliquid], there are two things I want to mention. Number one is the activity, and number two is the price, because the network activity doesn't necessarily translate to the price, and vice versa.'

Liu noted that while Hyperliquid currently holds market share in tokenized perps, centralized exchanges like Binance may soon take over. She cited Binance's recent launch of RWA perps, which quickly gained volume and liquidity.

According to Liu, 'Binance takes about 50% of the market share. But when it comes to DEX [Decentralized Exchange], Hyperliquid still leads in that space.'

Liu also touched on the price of the Hype token, stating that its recent all-time high of $86 is supported by token buybacks. She noted that Hyperliquid has spent over $400 million USD on buybacks and only a small amount of tokens are unlocked.