HIP-3 Trading Volume Concentrated at Trade.xyz as Overall Volume Drops

Hyperliquid (HYPE)’s HIP-3 trading volume is concentrated at Trade.xyz, which accounted for 97.8% of HIP-3 activity in the last 30 days, according to IOSG Ventures. During the same period, Trade.xyz’s trading volume dropped by 44.2%, from an average daily volume of $536 million in early August to $201 million between September 7–13.

The decline coincided with a rise in core perpetual futures volume, which increased by 117%. While HIP-3’s share of total Hyperliquid perpetual trading fell from 57.1% to 25.8%, overall market volume grew by 26%. IOSG Ventures noted that the drop in Trade.xyz’s volume may not solely be due to competition, as Entropy briefly led in some markets but captured only about 8% of the share.

Hyperliquid’s HIP-3 protocol allows external developers to build and operate their own perpetual futures markets on Hyperliquid infrastructure. Deployment requires a $500k HYPE deposit and additional assets via Dutch auctions after the first three. Despite high deployment costs, market share is not guaranteed, as liquidity, oracle design, and user adoption remain critical factors.

Trade.xyz’s volume decline was sharper than the 25.7% drop in underlying asset trading volumes, suggesting broader ecosystem dynamics at play. The protocol’s introduction of asset-specific growth modes highlights the need to review fee structures alongside market operations. HIP-3 open interest has surpassed $4 billion, but this metric differs from trading volume as it reflects unsettled contracts rather than executed trades.