Hyperliquid has surpassed its peers to lead the daily trading volume chart among the decentralized perpetual swap platforms. According to data from Coingecko, Hyperliquid marked nearly 1.3 billion in trading volumes on October 3rd, being significantly higher than others in the sector.
Based on the Hyperliquid L1 chain, Hyperliquid Perpetuals DEX operates a permissionless financial application that can handle 100,000 orders per second, with all trades, orders, and liquidations occurring on-chain.
The platform, which was formed by individuals with experience in creating proprietary markets, aimed to create a trading platform that would offer traders a smooth and easy experience.
Additionally, investors have been giving immense traction to Decentralized perpetual swap platforms since they do not hold the assets, but instead, traders can speculate on their price swings thanks to other financial instruments.
Perpetual swaps allow traders to enter into contracts that replicate the price of the underlying asset, with no expiration date, in contrast to spot trading, where assets are exchanged instantly.
Why is Hyperliquid becoming popular?
One of the main reasons for a more prominent investor focus on Hyperliquid is its low latency trading system. The technique of using millisecond advantages in network speed and latency to obtain information faster than other traders is known as low-latency trading in the financial markets.
In the fiercely competitive world of low-latency trading, trading businesses compete with one another for the quickest infrastructure and, perhaps more crucially, for the location of their operations closest to the trading exchange, which minimizes latency caused by distance.
Hyperliquid helps with trades between HFT makers and HFT takers at a pace that is at least ten times lower than on other platforms when compared to the overall volume of trades.
According to the ecosystem, most other sites have a flow that makes up the majority of the volume, making them slow and cumbersome. During periods of instability, liquidity on Hyperliquid gets deeper and more substantial. For large orders, retail consumers receive lesser spread and less slippage.