Hyperliquid's market share could come under pressure as regulated U.S. platforms expand and competition in prediction markets remains intense, according to JPMorgan analysts.
Meanwhile, inflows in Hyperliquid exchange-traded funds have stalled.
"We see significant challenges to the market share of decentralized platforms such as Hyperliquid," JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a report.
"Whether Hyperliquid eventually surpasses in market cap other tokens such as Solana and XRP remains to be seen." The first challenge is increasing competition from U.S.-regulated crypto perpetual futures trading platforms, while decentralized platforms face concerns over unlicensed derivatives activity, limited know-your-customer/anti-money-laundering controls, manipulation, attacks, oracle failures, and weaker consumer-protection safeguards, the analysts said.
"The launch of U.S.-regulated crypto perpetual futures products could accelerate a shift in liquidity away from offshore and decentralized venues to onshore venues," the analysts wrote.
