Hyperliquid Navigates Post-Crash Landscape with Promising Recovery Signals
After a tumultuous conclusion to 2025, highlighted by the impactful October 10 crypto crash, Hyperliquid (HYPE) — one of the market's largest decentralized exchanges (DEXs) — faced significant challenges entering 2026. A recent report from market research firm GLC provides a critical assessment of Hyperliquid's current standing and evaluates its recovery metrics as the new year unfolds.
The Road to Recovery: Post-October 10 Dynamics
The GLC report highlights a substantial downturn for Hyperliquid following the October 10, 2025, liquidation event. Trading volume plummeted by 44.3%, dropping from $10.17 billion to $5.66 billion, while open interest also saw a significant decline of 35.7%, falling from $14.75 billion to $9.48 billion. This marked the onset of a clear downtrend for the platform. However, more recent data indicates a nascent recovery. Since December 1, 2025, Hyperliquid's open interest has surged by an impressive 45.6%, even as trading volume experienced a slight 3.2% decrease during the same period. Year-to-date figures for 2026 further reinforce this positive shift, showing a 59.2% increase in trading volume and a 24.7% rise in open interest, suggesting renewed, albeit cautious, trader confidence and a tendency for larger position-taking.
Strategic Advancements and 2026 Outlook
Looking ahead, Hyperliquid exhibits strong potential for further growth. Recent 7-day average metrics reveal a more than 130% year-to-date increase in trading volume, primarily driven by a single active deployer, alongside a 60% rise in 7-day average open interest. Critically, Hyperliquid is also strategically gaining market share from centralized exchanges (CEXs) such as Binance, Bybit, and OKX, with its open interest now accounting for approximately 14.6% of Binance's. A key catalyst anticipated for 2026 is the rollout of its portfolio margin feature, currently in testnet. This innovation will enable traders to borrow and lend against their collateral, unlocking new use cases and, historically, proving to be a significant growth driver for other exchanges. Despite the HYPE token currently trading around $21.84, representing a 63% retracement from its all-time high of $59.30, the GLC report optimistically concludes that with improving core metrics and forthcoming strategic enhancements, Hyperliquid is poised for a surprising resurgence in the market.
