Binance confronts its first significant competitor, Hyperliquid, according to Jump Trading CIO's claims.

Hyperliquid vs Binance Coin: A Battle for Crypto Supremacy

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Hyperliquid, a newer player in the cryptosphere, is making waves and challenging the dominance of Binance Coin (BNB) in the market, according to high-frequency trading firm Jump Trading.

During the 2025 Coinbase State of Crypto Summit, Dave Olsen, CIO at Jump Trading, casually dropped a bombshell:

"Hyperliquid is turning everyone’s heads. They're the first significant challenger to Binance. They're shining a light on some of the regulatory loopholes in the framework for US participation."

He highlighted several key observations he'd made in 2025, and Hyperliquid's on-chain execution was one that stood out to him.

HYPE Eating BNB's Lunch?

To understand Hyperliquid's growing influence, let's examine its rising status in the Bitcoin perpetual market.

In mid-May, Hyperliquid trailed behind OKX and Bybit while Binance dominated in BTC Open Interest (OI). By June, Hyperliquid's BTC OI skyrocketed to nearly $3B, moving it to third place after overtaking OKX. Hyperliquid is the only top DEX in the CEX-dominated segment—and Bybit might be its next target.

Syncracy Capital's Ryan Watkins asserted that the perpetual market could become a $100B opportunity in the near future, likely boosting Hyperliquid even further:

"(Perps) could easily become a $100B+ revenue opportunity within 5 years. Hyperliquid."

The platform's exceptional traction and competitiveness were also confirmed by the soaring DEX to CEX ratio. Today, DEXes handle 27% of the total trading volume, up from 10% in 2024.

The DEX's native token, HYPE, has seen its holders raking in massive returns. Since April, HYPE has recovered by over 300% and reached a new record high. But the rally may just be getting started.

Tony G Co-Investment Holdings added 10K HYPE tokens to its treasury, making it the first corporate treasury company for the altcoin. This move raises the question: which altcoin—HYPE or BNB—offers better short-term returns?

HYPE has outperformed BNB by over 230% since April's lows. With Hyperliquid's growing moat, HYPE may still be the bigger earner despite the recent dip compared to BNB. The altcoin was trading at $38 at press time.

Sources:

Hyperliquid (HYPE)
Velo
The Block

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Both HYPE (Hyperliquid) and BNB (Binance Coin) are prominent in the cryptocurrency market, but they cater to different ecosystems and investment preferences.

Short-Term Investment Potential: HYPE vs BNB

| Feature/Aspect | HYPE (Hyperliquid) | BNB (Binance Coin) ||-----------------------------|-----------------------------------------------------|---------------------------------------------|| Ecosystem | Layer-1 blockchain for perpetual futures trading | Binance ecosystem, largest crypto exchange || Recent Performance | 45.95% YTD return, launched Nov 2024, peaked at $34.96, now ~$20–$34[2][3] | Not highlighted as a top YTD performer, but offers established stability || Market Cap | $11.4 billion (as of latest data)[3] | Significantly larger, not specified in recent sources || Unique Features | Zero gas fees, fast trading, corporate adoption in perpetual futures markets, high volatility post-launch[2] | Utility for fee discounts, token burns, staking, and Binance Smart Chain || Volatility & Liquidity | High volatility, especially around launch; requires careful trading setup[2] | More stable, high liquidity || Risk Profile | High, due to newness and potential for rapid corrections[2] | Lower, due to maturity and backing by Binance |

HYPE: Short-Term Outlook

Performance: HYPE has experienced explosive growth since its late 2024 launch, delivering a YTD return of nearly 46% and a sevenfold price increase in the early weeks, followed by a correction[2][3].
Adoption: Its platform is designed for perpetual futures, offering zero gas fees and fast transactions, features that have attracted short-term traders and some corporate interest in derivatives markets[2].
Volatility: HYPE is highly volatile, making it attractive for short-term gains but also risky. Appropriate trading setups, like clear support/resistance levels and stop-loss orders, are essential[2].
Market Position: As a newcomer, HYPE is still striving to prove itself, and its longevity is uncertain compared to established coins like BNB[2][3].

BNB: Short-Term Outlook

Performance: BNB’s short-term performance is not a top YTD gainer in recent rankings, but it remains a mainstay for short-term traders due to its liquidity and utility within the Binance ecosystem[3].
Stability: BNB is less volatile than new tokens like HYPE, making it a safer yet less thrilling short-term investment.
Utility: BNB offers tangible benefits within Binance, such as fee discounts and staking, reinforcing its demand and liquidity.

Analysis

HYPE offers higher short-term upside potential due to its recent adoption in the Bitcoin perpetual market, zero gas fees, and high volatility, but comes with higher risk, especially after its initial surge and ongoing consolidation[2][3].
BNB is more stable and has lower risk, but its short-term price movement is likely to be less dramatic compared to HYPE. It is favored for its liquidity and established use cases.

Conclusion

For traders seeking quick gains in a highly volatile market, HYPE may offer superior short-term investment potential, provided they can manage the associated risk and set appropriate trading safeguards[2][3]. In contrast, BNB is a better option for those prioritizing stability and liquidity, although with more modest short-term returns. Recent corporate adoption of Hyperliquid’s technology in perpetual markets adds a catalyst for HYPE’s short-term prospects, but it remains essential to exercise caution due to its rapid corrections and unpredictable market behavior[2].

Sources:

Hyperliquid (HYPE)
Velo
The Block
The growing influence of Hyperliquid is evident in its rise in the Bitcoin perpetual market, overtaking OKX and moving into third place by June 2025.
Hyperliquid's native token, HYPE, has seen significant returns for its holders, with a recovery of over 300% since April 2025.
The platform's fast trading, zero gas fees, and adoption in the perpetual futures markets have attracted short-term traders and corporate interest.
Despite HYPE's high volatility, it may offer superior short-term investment potential for traders seeking quick gains in a volatile market.
Binance Coin (BNB) offers established stability and utility within the Binance ecosystem, making it a safer yet less thrilling short-term investment compared to HYPE.