Hyperliquid’s HIP-3 Nears 50% of Perpetual Volume as On-Chain Stock Futures Surge

Hyperliquid’s permissionless market-creation framework, HIP-3, has grown rapidly and now accounts for nearly half of all perpetual futures trading on the platform.

The Block reported on July 13 that HIP-3’s share of total Hyperliquid perpetual futures volume has expanded from about 2% at the start of the year to roughly 50% recently.

The growth is being driven by rising demand from retail traders seeking to trade stocks on-chain.

TradeXYZ currently dominates the HIP-3 market. It offers perpetual futures products tied to the Nasdaq-100 through its "XYZ100" contract, as well as single-stock contracts linked to names such as Nvidia and Tesla. The products are settled in stablecoins rather than actual shares.

The Block said rising volume has also been supported by the simpler structure of perpetual futures compared with options. Unlike options, perpetuals do not expire, so traders do not need to account for time decay, or theta. They only pay funding fees, making the products easier to access for retail traders familiar with long and short positions.

Another advantage is 24-hour trading. Unlike traditional stock markets, the market never closes, allowing traders to react immediately to earnings releases or major news.

Still, the underlying stocks trade only during regular market hours. Outside those hours, prices are maintained through oracle pricing and the funding-fee mechanism. The Block said that setup, unlike the 24-hour crypto market, has not yet been fully tested.

The Block said early trading volumes confirm demand for 24-hour on-chain stock trading. Still, because the segment remains a new market built on traditional financial assets, its sustainability remains to be seen.