Hyperliquid launched its native USDH stablecoin on September 24, 2025, through Native Markets.
The move comes as the perpetual futures DEX faces increasing competition and prepares for a major token unlock in November.
Key Takeaways
USDH launched with $15 million pre-minted and $8.8 million in 24-hour trading volumeThe stablecoin could generate $220 million yearly from Hyperliquid’s $5.5 billion USDC depositsMarket share dropped from 71% in May to 38% in September as competitors gained usersToken unlocks worth $11.9 billion start November 29, releasing $500 million monthlyAster DEX briefly exceeded Hyperliquid’s daily volume at $24.7 billion vs $10 billion
What is USDH? Hyperliquid’s Native Stablecoin Explained
USDH Technical Specifications
USDH serves as Hyperliquid’s primary settlement currency across its perpetual futures, spot markets, and DeFi protocols.
The stablecoin maintains its dollar peg through cash and U.S. Treasury backing, with Bridge (owned by Stripe) managing reserves.
Unlike bridged stablecoins that carry additional security risks, USDH is issued natively on Hyperliquid’s chain.
This native approach eliminates bridge vulnerabilities and keeps transaction fees within the ecosystem.
The technical setup includes:
On-chain oracle feeds for balance verificationGENIUS Act and MiCA regulatory complianceDirect integration with Kinetiq, HypurrFi, and HyperlendNative issuance on HyperEVM
Native Markets: The Winning Team
Native Markets beat proposals from Paxos, Ethena, Frax Finance, BitGo, and Sky in the September 14 validator vote.
The competition was intense, with each bidder presenting different revenue-sharing models and technical approaches.
Native Markets submitted their proposal just 90 minutes after Hyperliquid announced the opportunity, suggesting prior preparation.
Validators ultimately chose the team based on ecosystem alignment rather than maximum revenue sharing.
Team members include:
Max Fiege: Early Hyperliquid investor and advisorAnish Agnihotri: Former Paradigm blockchain researcherMC Lader: Former President and COO at Uniswap Labs
Native Markets locked 200,000 HYPE tokens for three years, demonstrating long-term commitment to the project.
USDH Revenue Model: The $220M Question
Revenue Mechanics Breakdown
Hyperliquid holds $5.5-6 billion in USDC deposits, that is about 7.5% of USDC’s total supply.
Converting these to USDH at 4% Treasury yields would generate $220 million annually.
This conversion would redirect significant revenue from Circle to Hyperliquid’s ecosystem.
The platform currently pays zero yield to USDC depositors, making the switch to USDH particularly attractive for users seeking returns.
Revenue distribution:
50% for HYPE buybacks: Through the Assistance Fund50% for ecosystem growth: Development and user incentives
Other bidders offered more: Paxos and Ethena proposed 95% revenue sharing, while Frax and Agora offered 100%.
Impact on HYPE Token Economics
The Assistance Fund has grown from 3 million to 29.8 million HYPE tokens since January 2025, now worth $1.5 billion.
This automated buyback system creates consistent demand for HYPE.
The fund receives trading fees, liquidation penalties, and now USDH reserve yields.
Every dollar earned translates directly to HYPE purchases on the open market.
This mechanism has helped HYPE maintain relative price stability despite broader market volatility.
Early USDH metrics:
Pre-mint: $15 millionFirst trading session: $2.2 million24-hour volume: $8.8 millionPeg stability: 1.001 USDH/USDC
Market Share Crisis: From 71% to 38% in 4 Months
Timeline of Decline
Hyperliquid’s perpetual futures dominance has declined sharply.
The platform processed $398 billion in August alone, yet competitors continue capturing market share.
New protocols launch weekly, each offering unique features or better incentives.
The total number of perpetual DEX protocols has grown from 2 in 2022 to over 80 today.
PlatformMarket ShareChangeHyperliquid38%-33%Lighter16.8%+12%Aster14.9%+14%Others30.3%+7%
Current Performance Metrics
Volume comparison shows Hyperliquid maintains leadership over longer periods.
The platform’s cumulative volume exceeds $100 billion, demonstrating strong historical performance.
However, daily volumes fluctuate significantly, with competitors occasionally surpassing Hyperliquid during high-activity periods.
The 30-day volume metric remains the most reliable indicator of actual market position.
MetricHyperliquidAster24h Volume$477.3M$199.96M7d Volume$5.358B$2.849B30d Volume$21.555B$5.316BTotal Volume$103.607B$5.505B
Aster: The Binance-Backed Challenger
Aster’s Competitive Advantages
Aster, backed by YZi Labs (the family office of Binance founder CZ), offers several features Hyperliquid lacks.
The platform launched with immediate multi-chain support, avoiding Hyperliquid’s single-chain limitations.
Aster’s hidden order feature addresses a common trader complaint about front-running on transparent DEXs.
The addition of stock perpetuals opens an entirely new market segment unavailable on most DEXs.
Multi-chain support: BNB Chain, Ethereum, Solana, and ArbitrumHigher limits: 1,001x maximum position size vs Hyperliquid’s 40xPrivacy features: Hidden orders prevent front-runningAdditional products: 24/7 stock perpetuals (TSLA, NVDA)Yield collateral: USDF integration for passive income
Growth Metrics That Shocked the Market
Aster’s September 17 launch statistics show unprecedented growth for a new DEX.
The platform allocated 53.5% of total token supply to community airdrops, attracting immediate attention.
Trading volume spiked during Asian hours, suggesting strong regional adoption.
Several high-profile traders publicly moved funds from Hyperliquid to Aster, creating social proof momentum.
Token price: $0.08 to $2.42 (2,800% increase)Market cap: $3.7 billion in one weekOpen interest: 33,500% growth to $1.25 billionPeak daily volume: $24.7 billion
Community members suggest CZ’s promotion and user incentives drive Aster’s rapid growth.
The $11.9 Billion Token Unlock Challenge
Unlock Schedule Analysis
HYPE’s vesting schedule begins November 29, 2025, exactly one year after the token’s genesis.
The unlocks follow a linear monthly schedule with no additional cliff periods.
Core contributors who worked on Hyperliquid since inception will receive their first tokens after years of development.
Market observers note the timing coincides with typical year-end tax planning, potentially increasing sell pressure.
Total tokens: 237.8 million HYPECurrent value: $11.9 billionMonthly release: ~$500 millionDuration: 24 monthsRecipients: Core team and contributors
Market Impact Projections
Maelstrom, Arthur Hayes’s fund, calls this a “Sword of Damocles” situation.
Historical data from similar unlock events shows immediate price impacts ranging from 10% to 50%.
The psychological effect often exceeds actual selling, as traders position ahead of expected dumps.
Some validators have already begun reducing positions in anticipation.
Current buybacks absorb only 17% of monthly unlocksLeaves $410 million potential monthly selling pressureTeam members face “life-changing sums” available immediately
Recent stablecoin news shows similar unlock events typically cause 10-30% price drops.
Can USDH Revenue Offset Market Challenges?
Bull Case Analysis
Positive scenarios assume complete USDC to USDH conversion happens gradually over 6-12 months.
The platform’s gas-free trading and sub-second execution remain unmatched by competitors.
Hyperliquid’s order book depth exceeds most CEXs for major pairs.
The team’s track record of shipping features quickly suggests they can adapt to competition.
Complete USDC to USDH conversionSteady 4% reserve yields$110 million annual buyback capacityGrowing USDH adoption beyond current users
Supporting factors include Paradigm’s $765 million HYPE position and 21Shares’ exchange-traded products on the SIX Swiss Exchange.
Bear Case Examination
Negative factors create a challenging environment for HYPE holders.
The platform’s single-chain architecture limits growth compared to multi-chain competitors.
Recent volume spikes on Aster suggest traders prioritize features over loyalty.
The July outage damaged confidence among institutional traders who require 100% uptime.
$220M yearly revenue vs $6B yearly unlock pressure (3.7% coverage)Continuing user migration to competitorsTechnical issues (July outage cost $2M in reimbursements)Regulatory uncertainty around stablecoinsBetter-funded competitors with more features
Strategic Implications for DeFi
Stablecoin Wars in DEX Ecosystem
USDH joins a growing trend of DEX-native stablecoins aiming to capture value from external issuers.
If successful, Circle could lose $150-220 million in annual revenue from Hyperliquid alone.
Other major DEXs are watching USDH’s performance before launching their own stablecoins.
The success or failure will set precedents for the entire sector.
Current stablecoin categories:
DEX-native (USDH)Multi-chain (USDC, USDT)Yield-bearing (USDS, sDAI)Regulated (PYUSD, USDP)
Future of Decentralized Perpetuals
The perpetual DEX sector shows strong growth despite market volatility.
Total sector revenue exceeded $500 million in 2025, attracting venture capital attention.
New protocols experiment with different models: order books, AMMs, hybrid systems, and peer-to-peer matching.
The competition drives innovation but also fragments liquidity across platforms.
Q3 2025: $2 trillion volumeDaily peaks: $40+ billionActive protocols: 80+Hyperliquid users: Up 78% in H1 2025
Hyperliquid operates with 11 employees handling $330 billion yearly, while PayPal needs 29,000 staff for $1.6 trillion.
Investment Considerations & Risk Analysis
HYPE Token Outlook
Current HYPE status reflects mixed market sentiment.
Prediction markets show 73% of traders expect further declines before recovery.
The token trades below its 50-day moving average, indicating short-term weakness.
However, long-term holders remain confident, with minimal movement from top 100 wallets.
Price: $43-47 (down from $59.39 peak)Rank: #19 cryptocurrencyMarket cap: $15.8 billionDaily volume: $354 millionYTD performance: +95%
Arthur Hayes sold his entire position (58,631 HYPE) for $823,000 profit on September 21, citing unlock risks despite his $5,000 long-term target.
Risk Factors Ranked by Severity
Each risk factor compounds the others, creating a negative feedback loop.
Token unlocks reduce price, making competitors more attractive.
Technical issues drive users away, reducing volume and fee revenue.
Lower revenue means fewer buybacks, creating additional price pressure.
Breaking this cycle requires addressing multiple issues simultaneously.
Token unlocks: $500M monthly selling pressureMarket share loss: 33% decline in four monthsCompetition: Aster’s 2,800% growth with Binance supportTechnical problems: Past outages and vulnerabilitiesRegulatory risks: Changing stablecoin rules
Conclusion
USDH launches during Hyperliquid’s most difficult period.
While $220 million in potential annual revenue sounds significant, it represents only 3.7% of the $6 billion yearly unlock pressure starting November 29.
The timing suggests desperation rather than strategic planning.
Native Markets faces immediate pressure to drive adoption while managing technical integration.
The broader DEX market watches closely, as USDH’s success or failure will influence similar initiatives across the sector.
Success depends on Hyperliquid’s ability to:
Stop losing users to Aster and othersSurvive the token unlock without major price collapseConvert USDC deposits without triggering withdrawalsFix technical issues while maintaining performance
Watch November’s unlock event and Q4 USDH adoption as key indicators of Hyperliquid’s future.
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FAQs:
1. What is Hyperliquid’s USDH stablecoin?
USDH is Hyperliquid’s dollar-backed stablecoin launched September 24, 2025. It serves as the main trading currency across the exchange while generating revenue from Treasury yields.
2. How much revenue will USDH generate for Hyperliquid?
Based on $5.5-6 billion in deposits at 4% yield, USDH could generate $220 million annually. Half funds HYPE buybacks, half supports ecosystem development.
3. Why did Hyperliquid’s market share drop from 71% to 38%?
New competitors like Aster offer better features: multi-chain access, 1,001x position limits, and strong promotional support from Binance’s ecosystem.
4. What is the HYPE token unlock schedule?
Starting November 29, 2025, 237.8 million HYPE tokens worth $11.9 billion unlock over 24 months. This releases approximately $500 million monthly to team members.
5. Who is Native Markets and why did they win the USDH bid?
Native Markets is a startup founded by Max Fiege (Hyperliquid advisor), Anish Agnihotri (blockchain researcher), and MC Lader (ex-Uniswap Labs). They won despite offering lower revenue sharing than competitors.