Hyperliquid is the current leader in on-chain perpetual futures trading, but now faces competition from the Solana network. Solana co-founder Anatoly Yakovenko believes Solana should build its own trading platform with similar features directly within its existing technology. This discussion is happening as Hyperliquid works to navigate upcoming regulations in the US, particularly with the CLARITY Act.
Hyperliquid co-founder Jeffrey Yan recently spent several days in Washington D.C. with the Hyperliquid Policy Center, meeting with government officials as the CLARITY Act progressed. He explained that the conversations centered on Hyperliquid, how it could benefit American consumers, and the best way to integrate onchain derivatives markets into the existing U.S. regulatory system.
This new initiative immediately ran into an existing discussion about the design of the X platform. Toly suggested that Hyperliquid users also check out a new perpetuals exchange built on Solana. This sparked debate, with many users wondering if the industry needs another exchange like it, or if the focus should be on creating new types of financial tools.
Rune stated his admiration for the Solana developers who are actively launching their applications, acknowledging their hard work. However, he suggested that their efforts might be more effective if focused on creating truly new innovations rather than simply imitating existing platforms. He believes a successful decentralized perpetual exchange (DEX) built natively on Solana needs to offer something significantly better than what Hyperliquid already provides, beyond just lower fees or a similar product.
Hyperliquid Vs. Solana
Toly explained that the key was composability. He pointed out that questioning the need for this new system is similar to asking why Hyperliquid was necessary when established platforms like Binance, Coinbase, and CME were already available.
Toly explained the question is essentially: what unique benefits does Hyperliquid offer compared to established exchanges like Binance, Coinbase, or CME? He believes the Solana Virtual Machine (SVM) requires a decentralized perpetual exchange (perp DEX) that works seamlessly within its system to encourage new development. Currently, applications built on the SVM can’t directly use Hyperliquid because they need to connect through a separate bridge.
This dispute highlights fundamental differences in how various platforms approach the infrastructure for trading derivatives. Hyperliquid has focused on creating a fully self-contained, on-chain exchange designed for traders who want complete control of their funds, fast execution, and an alternative to traditional centralized exchanges. Rune pointed out that Hyperliquid has successfully defined its purpose – offering self-custody, privacy (no KYC requirements), and community ownership – but questioned whether simply being compatible with other applications is enough to establish it as a leading Solana-based competitor.
Toly didn’t promise success, but he pointed out that the market is big enough for Solana developers to try bold new things. This is especially true if Solana’s core technology can handle applications that rival those offered by traditional, centralized platforms.
I’ve been looking at the open interest numbers, and honestly, the $10 billion is a huge opportunity. When you compare it to the trading volume on exchanges like Binance, CME, Coinbase, and the NYSE, it’s still relatively small. That makes me really optimistic about Solana – I want to see it grab a bigger piece of the overall market, and it definitely has the potential to do so.
He also noted that Binance and other established companies won’t easily give up on this market, and Hyperliquid’s success already shows there’s a strong interest in trading platforms that function like decentralized exchanges (DEXs). Toly explained that Hyperliquid demonstrated people prefer the DEX trading experience over traditional platforms like Binance or CME, and highlighted the innovation happening within the Solana ecosystem, including projects from recent hackathons, as further proof of this trend.
The discussion also caught the attention of people in the broader crypto market, not just those involved with Solana and Hyperliquid. Simon Dedic, founder of Moonrock Capital, stated he wasn’t heavily invested in either Solana or Hyperliquid and doesn’t trade much himself, but he found Toly’s interest in the product significant. He explained that when a successful and driven founder like Toly gets enthusiastic about something new, it’s worth taking notice.
At press time, HYPE traded at $45.968.
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2026-05-19 07:01