Hyperliquid Smashes Records with $248B Perps Volume in May

Decentralized derivatives just flexed their muscles—Hyperliquid's perpetual swaps market saw a staggering $248 billion in trading activity last month. Not bad for a sector Wall Street still dismisses as 'crypto casino' fodder.

What's driving the surge? Traders are flocking to on-chain perps for leverage without the KYC headaches of centralized exchanges. Meanwhile, traditional finance keeps building compliance moats while DeFi eats their lunch.

One hedge fund manager sniffed, 'It's all degenerate gambling'—right before adjusting his 150x Bitcoin position. The revolution won't be collateralized, but it might be self-custodied.

Hyperliquid Gains Ground Against Binance

Hyperliquid’s rising dominance is becoming harder to ignore. In May, the platform’s trading volume equaled 10.54% of Binance’s perpetual futures volume, setting a new record for its share of the top exchange’s activity. That’s up from 9.76% in April, reflecting growing confidence in decentralized, non-custodial trading infrastructure.

Key reasons behind Hyperliquid’s momentum include its CEX-like user experience, low fees, and lightning-fast execution, all while preserving onchain transparency and self-custody. Additionally, its popular Season 2 points campaign has attracted significant trader interest following the success of its initial airdrop.

DEX Perps Are On the Rise

Hyperliquid’s gains also mirror a broader industry trend. In May, decentralized perpetual platforms captured 6.84% of global perpetual futures volume—just shy of February’s all-time high of 7.06%. That figure has climbed steadily from under 2% in 2022 and signals a growing shift toward DEX-based futures trading.

The average DEX share for 2025 sits at 6.7%, a significant uptick that highlights improved infrastructure, better spreads, deeper liquidity, and the rise of stablecoin-based on-ramps. Many analysts now expect DEXs to break double-digit market share by the end of the year.

James Wynn’s $100 Million Loss Sends Shockwaves

While Hyperliquid celebrates a record-breaking month, some of the attention is tied to one of crypto’s most dramatic recent losses. James Wynn, a pseudonymous trader famous for turning small bets into millions, recently revealed that he lost $100 million in a matter of days on the platform.

Wynn had gained notoriety in 2023 after flipping $7,000 into over $25 million by trading PEPE, a high-risk token. In March 2025, he entered the world of perpetual futures trading and quickly turned a $3 million stake into $100 million, thanks to high-leverage positions on Bitcoin.

However, the fame soon backfired. In a public statement, Wynn admitted that the online spotlight impacted his judgment. He began taking riskier bets, culminating in a massive $1.25 billion long position on Bitcoin with up to 40x leverage.

Things unraveled quickly when a tweet from former U.S. President Donald TRUMP caused a sharp drop in Bitcoin’s price. The sudden move sent BTC below Wynn’s liquidation level, wiping out his entire position in one swift blow.

A Cautionary Tale and a Decentralized Future

James Wynn’s loss has sparked debate in the crypto community. Some see it as a cautionary tale about the dangers of high leverage and the pressure of public trading. Others view it as part of the learning curve in a fast-evolving onchain ecosystem.

For Hyperliquid, however, the episode has drawn even more eyes to its platform. With its non-custodial structure, growing market share, and continued innovations, Hyperliquid is fast becoming a major player in the perpetual futures space.

As more traders seek decentralized, transparent, and high-performance platforms, Hyperliquid’s trajectory suggests that it may soon compete head-to-head with legacy exchanges like Binance on a more equal footing.