Hyperliquid Outflows Rack up as HYPE Plunges 40% in a Month

Core Insights - Hyperliquid has experienced significant outflows, with over $2 billion withdrawn since September, leading to a decline in its total value locked (TVL) and a sharp drop in the price of its native token, HYPE [1][6]. Group 1: Financial Metrics - Hyperliquid's TVL peaked at $2.79 billion on September 19 but has since fallen by more than 45% to $1.48 billion as of mid-December [2]. - In the thirteen weeks leading up to December 15, traders withdrew over $2 billion in USDC from Hyperliquid [2][6]. - The price of HYPE has decreased by nearly 40% in the month leading up to December 19 and is down approximately 58% from its all-time high in September [4]. Group 2: Market Dynamics - The decline in Hyperliquid's performance coincides with increased competition from alternative perpetual futures exchanges, which have attracted trading activity away from Hyperliquid [2][3]. - Aster and Lighter have surpassed Hyperliquid in trading volume, pushing Hyperliquid into third place in the market [3]. - The competitive landscape in the perpetuals market is becoming more dynamic, with liquidity shifting as traders seek better incentives across different platforms [4].