Arthur Hayes stated in an interview with foreign media that Hyperliquid has rapidly risen in the on-chain perpetuals market over the past two years, but this advantage may not be sustainable long-term. As trading in real-world asset derivatives heats up, traditional financial exchanges and major centralized platforms could enter this market and directly compete for its share.
Real-world assets continue to gain momentum
Hayes believes that the platform’s current growth is largely driven by demand for trading over weekends, particularly in traditional assets like crude oil, which have lower liquidity but significant price volatility. He notes that such trading has prompted more people to reconsider the price discovery capabilities of crypto platforms.
After its October 2025 upgrade, Hyperliquid has enabled derivatives tied to real-world assets such as gold and silver. The platform officially stated this week that the total open interest in these markets has reached $3 billion.
The buyback mechanism relies on transaction fees.
The article notes that Hyperliquid uses consistent trading fee revenue to repurchase HYPE tokens on the open market and permanently remove a portion from circulation. This design aims to increase scarcity, but Hayes argues that if the platform’s trading volume were to suddenly decline, the mechanism would face increased pressure.
According to Dune dashboard data, Hyperliquid has collectively repurchased 26.6 million HYPE tokens and burned approximately 579,600. Based on the current price, this repurchase volume is estimated at around $1.56 billion.
Wall Street may launch similar products.
Notably, Hayes was previously an enthusiastic supporter of HYPE and publicly bullish when the token reached new highs. However, the day after the interview, he stated on social media that he had sold his entire HYPE position. HYPE is currently trading at approximately $59, down about 14% over the past seven days, after having peaked above $75 the previous week.
Hayes believes that major traditional U.S. exchanges are accelerating their entry into the perpetual futures market. Unlike traditional futures, perpetual contracts have no expiration date, allowing traders to hold positions indefinitely, with funding rates keeping prices closely aligned with the spot market. He expects that within the next year, liquid equivalents from the traditional financial system may emerge, competing more directly with on-chain platforms.