Core Insights - Centralized exchanges have traditionally dominated crypto price discovery, but this dynamic is shifting with the emergence of Hyperliquid, a self-funded on-chain perpetuals exchange [1] - Hyperliquid's founder claims it is now the "most liquid venue for crypto price discovery," challenging long-held industry assumptions [1][2] Liquidity Analysis - Hyperliquid's liquidity claim is particularly focused on Bitcoin perpetual futures, where it shows competitive metrics such as tight spreads and deep order books [3] - Bitcoin perpetual spreads on Hyperliquid are around $1, compared to approximately $5.50 on Binance, indicating a significant advantage [3] - The cumulative ask liquidity on Hyperliquid is about 140 BTC, while Binance has an estimated 80 BTC at comparable levels, suggesting better execution for traders [4] Transparency and Verification - Hyperliquid's liquidity is fully visible and verifiable on-chain, allowing for independent real-time audits of order book and execution data, unlike centralized exchanges [4] Market Expansion - Hyperliquid has expanded beyond crypto-native assets, supporting permissionless perpetual markets tied to traditional assets like commodities, with open interest nearing $790 million, largely driven by gold and silver trading [5] Rapid Growth - Launched in 2023 without venture capital, Hyperliquid has quickly risen to control over 70% of decentralized perpetuals liquidity and shows tighter BTC spreads than Binance [6][7] - After significant growth in 2025, Hyperliquid now commands over $8 billion in open interest, establishing itself as the dominant decentralized exchange for perpetuals [7]