The Hyperliquid (HYPE) stablecoin market has become increasingly concentrated as liquidity continues to shift towards USD Coin (USDC) rather than the native USDH.
This trend reflects traders’ preference for deeper liquidity and stable settlement assets over native DeFi stablecoins.
The Hyperliquid Foundation has provided nearly $10 million in grants to help with migration costs and ensure that each of its protocols continues to work smoothly. These are HIP-1, HIP-3, HyperEVM, bridge, and on-premises protocols.
Additionally, users can swap their USDH for USDC through the same migration paths, reducing friction during the transfer process.
According to DeFiLlama, USDC now dominates Hyperliquid’s stablecoin liquidity.
In fact, USDC represents $5.74 billion of Hyperliquid’s stablecoin pool of $5.96 billion. Conversely, US dollar holdings fell sharply to just $20 million.
Meanwhile, Tether (USDT) Tracks of approximately $155 million. These numbers clearly indicate that network effects support the increasing dominance of USDC.
This imbalance suggests that network effects are enhancing USDC’s leadership, making it the preferred security across the spot and perpetual markets. If institutional activity continues to expand, USDC Dominance can be further strengthened.
Otherwise, the USD will require meaningful improvements in facilities to regain market share.
Protocol activity enhances the benefit of HYPE
This orderly migration is already translating into stronger on-chain activity as Hyperliquid continues to scale around the first USDC model. This shift did not disrupt user engagement.
It has allowed a sustained level of around 6,932 daily active addresses and over 315,000 daily transactions, according to DeFiLlama. Data.
Meanwhile, Permanent trading volume It remained near $2.8 billion, strengthening Hyperliquid’s lead in on-chain derivatives.
The growing activity also generates hundreds of millions in annual fee revenue, creating recurring value for the ecosystem. These fees increasingly flow to HYPE through staking, priority fees, repurchases and incentives rather than relying primarily on speculation.
If trading activity and USDC liquidity continue to grow together, HYPE’s long-term value gain may be further enhanced. Otherwise, slower network activity may gradually reduce revenue growth.
