Core Insights - A new thesis from DeFi analyst Patrick Scott suggests that Hyperliquid, despite losing market share, remains the most investable decentralized exchange (DEX) for perpetual futures [1] Market Overview - The perpetual futures market has seen a significant shift, with decentralized platforms (perp DEXes) increasing their share from less than 2% of centralized exchange (CEX) trading volume in 2022 to over 20% recently [2][3] Hyperliquid's Performance - Hyperliquid's market share of perp DEX volume has dropped from 45% to 8% in recent weeks, while Binance-affiliated Aster has surged to over $270 billion in weekly trades [4] - Despite this decline, Hyperliquid continues to generate strong revenue and maintains a significant open interest, commanding about 62% of the perp DEX open interest market [5] Future Prospects - Hyperliquid is expanding with initiatives like the HyperEVM network, which hosts over 100 protocols and has $2 billion in total value locked, and the USDH stablecoin backed by reserves held with BlackRock and Superstate [6] - The HIP-3 initiative aims to allow builders to launch new perp markets by staking large amounts of HYPE, creating a "supply sink" for the token [6] Investment Thesis - Scott's thesis hinges on Hyperliquid's ability to maintain open interest and revenue levels, as well as the liquidity of USDH over the next year [7]