Hyperliquid Q3 Revenue Rises 22% as USDC Yield Adds $17.3M
Hyperliquid’s Q3 revenue reached $190.9 million, while higher HYPE prices reduced the number of tokens bought and equity perpetuals drove HIP-3 volume.
Key Notes
- Hyperliquid’s Q3 protocol revenue rose 21.7% to $190.9 million but remained 36.5% below the prior year.
- The Assistance Fund spent $148.7 million on HYPE while buying 26.4% fewer tokens at a higher average price.
- Equity perpetuals generated $153.8 billion in quarterly volume, accounting for 58.8% of HIP-3 turnover.
Hyperliquid generated $190.9 million in third-quarter protocol revenue, up 21.7% from the previous quarter, as USDC reserve income supplemented trading fees and equity derivatives drew more activity to the network.
The quarterly review from the Hyperliquid Research Collective, founded by Four Pillars and GLC Research, also showed revenue remaining 36.5% below the same period last year. The figures measure protocol activity, rather than the earnings of a listed company holding HYPE.
USDC Reserves Add a New Revenue Stream
Trading and network revenue increased 10.7% quarter over quarter to $173.6 million. Another $17.3 million accrued from USDC reserves after that income stream began on August 27, accounting for roughly half the quarter’s total revenue increase.
The timing matters for token purchases. The Assistance Fund received its first reserve-income payment in early October, making it available for fourth-quarter buybacks. Revenue recorded for Q3 was therefore not all cash available for repurchases during that quarter.
Hyperliquid’s stablecoin framework provides for reserve revenue to accrue over 30-day intervals and reach the Assistance Fund eight days after each interval ends.
In a Friday follow-up, HRC said priority fees contributed another $9.6 million, increasing 3.3-fold from Q2. These charges relate to faster execution and data access. Together with reserve income, they represented approximately 14% of Q3 protocol revenue.
More Buyback Dollars Purchase Fewer HYPE Tokens
The Assistance Fund spent $148.7 million buying HYPE during Q3, an increase of 5.7%. However, the number of tokens acquired fell 26.4% as the average purchase price rose to $72.93.
A larger dollar budget therefore did not translate into greater token absorption. The comparison illustrates why buyback spending and the quantity purchased need to be assessed separately.
Hyperliquid’s fee documentation says the fund automatically converts trading fees into HYPE and that its tokens are burned. The reserve-income arrangement adds a separate funding source, discussed in CoinScreamer’s earlier stablecoin revenue coverage.
Equity Perpetuals Lead HIP-3 Activity
Quarterly trading volume on HIP-3 reached $262 billion. Equity perpetuals accounted for $153.8 billion, or 58.8%, after growing 161% from Q2.
These contracts provide leveraged price exposure to shares without transferring ownership of the underlying stock. Their expansion builds on the shift toward traditional-asset perpetuals examined by MarketSpeaker.
Growth also brought operational concerns. HRC identified a July reference-price incident in an SK hynix perpetual that triggered $57.4 million in liquidations. Trade[XYZ] handled 97.5% of HIP-3 volume in September, highlighting concentration among market operators.
Native cryptocurrency perpetuals recovered too, with volume rising 72% from July to September. HIP-3’s share of total perpetuals volume consequently fell from 51% to 25% across those months, despite its record quarterly turnover.
Third-Party Apps Expand Their Role
Average daily traders reached a quarterly record of 65,161, up 20%. Fees earned by third-party applications through builder codes rose 50% to $25 million.
Those application fees are distinct from protocol revenue. Hyperliquid’s builder-code rules let applications charge approved fees on orders submitted for users, who can revoke permission. The two revenue figures should not be added together as a single protocol total.
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