Hyperliquid Revenue Surpasses $1.4 Billion as HYPE Price and Open Interest Decline
Hyperliquid has generated more than $1.4 billion in cumulative protocol revenue, with over $1.26 billion spent on open-market HYPE buybacks, according to an October 8 research report from Castle Labs. The milestone highlights the decentralized derivatives platform's scale as its native token trades below recent highs and derivatives open interest contracts.
Castle Labs estimates that Hyperliquid accounts for more than 56% of the onchain perpetual futures market by open interest. However, HYPE was quoted at $84.41 on October 10, down about 13% from its late-September peak near $97, while aggregate open interest in HYPE derivatives declined 1.95% over the preceding 24 hours.
Meanwhile, third-party wallet integrations continue to expand the platform's reach, and OpenETF has begun testing tokenized investment funds built on Hyperliquid infrastructure. The new initiative remains in testnet, with no announced mainnet launch date.
Hyperliquid Revenue and HYPE Buyback Strategy
Castle Labs attributes Hyperliquid's growth to its trading infrastructure, third-party distribution network and token economics. The protocol generates most of its revenue from perpetual futures trading, with smaller contributions from spot markets and other fee-generating activities.
According to the report, approximately 95% of fees collected through HyperCore trading, Builder Codes and HIP-3 markets are directed toward HYPE repurchases. The mechanism links protocol fee generation to demand for the native token through open-market purchases.
However, the cumulative buyback figure does not establish the current pace of purchases or whether present-day buying activity is sufficient to offset selling pressure. Assessing that relationship requires more recent information about protocol revenue and ongoing repurchases.
Castle Labs' estimate that Hyperliquid controls more than 56% of the onchain perpetual futures market also illustrates its position in decentralized derivatives. That market-share figure measures open interest across onchain perpetual futures platforms, rather than exposure to HYPE contracts alone.
Phantom and MetaMask Generate Millions Through Builder Codes
Hyperliquid's distribution strategy allows third-party applications to direct users' trades to its infrastructure through Builder Codes. Participating applications can earn additional fees on eligible orders, giving wallet providers a commercial incentive to offer access to the platform's trading products.
Castle Labs identifies Phantom and MetaMask as significant beneficiaries of this arrangement. Phantom has generated more than $25 million in cumulative Builder Codes revenue, while MetaMask has earned more than $10.5 million, according to the report.
Hyperliquid's documentation states that Builder Code fees are processed onchain and require user authorization. Fees for perpetual futures are capped at 0.1%, and users can revoke their approvals.
The model extends Hyperliquid's reach beyond its own trading interface. Rather than relying exclusively on users visiting its native platform, the protocol can receive trading activity from established applications with existing audiences. For wallet providers, derivatives trading offers another potential source of transaction-based income.
The arrangement also makes continued third-party participation important to Hyperliquid's distribution strategy. Its ability to benefit from these integrations depends partly on applications continuing to route trading activity through the protocol.
HYPE Price Weakens as Derivatives Open Interest Falls
Despite Hyperliquid's cumulative revenue milestone, HYPE has retreated from its recent highs. The Coinbase daily chart showed the token trading at approximately $84.41 on October 10, following a late-September peak near $97. An early-October recovery toward $95 subsequently lost momentum.
The token's 14-day Relative Strength Index stood at 44.82, below its displayed moving average of 52.35. An RSI reading below 50 indicates weaker recent momentum, although the indicator remained above the conventional oversold threshold of 30.
The available chart data show a pullback and weakening momentum but do not establish a confirmed support test or a price reversal.
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| Source: TradingView |
Derivatives data point to a contraction in outstanding market exposure. Aggregate HYPE open interest was approximately $2.4 billion in the October 10 snapshot, down 1.95% over 24 hours. Hyperliquid represented the largest share of this exposure, followed by Binance and Bybit.
Hyperliquid accounted for roughly 70% of the listed derivatives exposure tied specifically to HYPE, making it the leading venue for leveraged trading in its own token. This is a different measure from Castle Labs' estimate of the protocol's share of the broader onchain perpetual futures market.
Falling open interest indicates that outstanding derivatives positions have contracted, but the figure alone does not show whether traders closed long positions, reduced short exposure or adjusted hedges. Funding rates and liquidation data would provide additional context for assessing market positioning.
OpenETF Launches Testnet for Tokenized Investment Funds
Hyperliquid's infrastructure is also being explored for financial products beyond direct derivatives trading. According to information from Binance, OpenETF launched a testnet on October 6 that allows managers to create tokenized investment funds backed by portfolios traded on Hyperliquid.
The reported design gives each fund publicly defined terms and ERC-20-compatible share tokens that investors can hold in their wallets. It separates ownership of fund shares from execution of the underlying portfolio strategy.
On HyperEVM, smart contracts issue shares and manage subscriptions, redemptions and related payments. On HyperCore, a corresponding vault serves as the trading account for the fund's portfolio. Managers direct trading activity without receiving the vault's trading keys.
The initial design sets a minimum subscription of 100 USDC, although fund managers can establish a higher threshold. Managers must also purchase at least 100 USDC in fund shares and maintain a minimum 5% ratio.
Performance fees can range from 0% to 50%, with a default rate of 20%. Annual management fees can range from 0% to 2%, with a default of zero. Both fee rates become fixed after share issuance.
The testnet includes a redemption adjustment fee that starts at 0.1% and increases with notional leverage, subject to a 1% cap. These fees remain within the fund.
The structure offers a potential way to use Hyperliquid's trading infrastructure for investment products in which investors hold tokenized fund shares while designated managers execute the underlying strategy. However, OpenETF remains in the testing phase and uses test assets without monetary value. The project explicitly warns users against depositing real funds and has not announced a mainnet launch date.
There is therefore no established basis for attributing live fund inflows, assets under management or additional protocol revenue to OpenETF at this stage.
What Hyperliquid's Revenue Milestone Means for HYPE
Hyperliquid's reported figures demonstrate the scale of its fee-generating derivatives business and the commercial reach of its third-party distribution model. The cumulative revenue and buyback totals provide historical measures of activity, but they do not by themselves determine the token's near-term price direction.
Three indicators will help clarify the relationship between protocol activity and HYPE: the pace of new revenue generation, the value of ongoing token repurchases and whether derivatives open interest stabilizes alongside the price.
OpenETF could introduce another use case for Hyperliquid's infrastructure, but its economic contribution will remain uncertain until a live deployment attracts users and capital. For now, the protocol's cumulative revenue exceeds $1.4 billion, wallet integrations have generated measurable earnings, and HYPE's recent price action reflects weaker momentum despite the platform's broader growth.
Source: crypto-news-flash
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.