After a tumultuous finish to 2025, characterized by increased volatility and the October 10 crypto crash, Hyperliquid (HYPE), one of the largest decentralized exchanges (DEX), faced significant challenges heading into 2026.
With less than two weeks until the end of January, market research firm GLC released an interesting report assessing Hyperliquid’s current situation and assessing its recovery metrics.
Post-October 10 recession
THE report points out that Hyperliquid’s trading volume and open interest suffered a considerable drop following the October 10 liquidation, marking the start of a downward trend for the platform.
Since then, trading volume has decreased by 44.3%, from $10.17 billion to $5.66 billion. Open positions also saw a 35.7% decline, from $14.75 billion to $9.48 billion.
However, signs of recovery are appearing. Notably, since December 1, 2025, the trading volume on the platform has seen a slight decrease of 3.2%, while open interest has jumped by 45.6%.
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Measurements since the start of the year reveal a more optimistic picture: trade volume increased 59.2% from $3.56 billion to $5.66 billion, and open interest increased 24.7% from $7.60 billion to $9.48 billion.
Even though open interest has started to recover since the October event, trading volume has not rebounded at the same pace. This disparity led to a decline in the volume-to-open interest (OI) ratio, which fell from 0.90 on December 1 to 0.60 in mid-January, likely due to a decrease in market volatility, which dampened trading activity.
Despite these challenges, there is a positive trend indicating that traders are starting to open larger positions on Hyperliquid, and the recovery in volume since the start of the year is promising.
The report suggests that open interest is a more reliable indicator of traders’ confidence and long-term positioning, while trading volume tends to be influenced by broader market conditions. Although current indicators remain below pre-October 10 levels, the trend indicates that recovery is underway.
Will 2026 mark a surprising resurgence for hyperliquid?
Recent volume and open interest data is reportedly bullish, with the 7-day average volume up over 130% year-to-date, driven primarily by one active deployer, XYZ, which accounts for approximately 80% of that volume. Average 7-day open interest also increased by over 60%.
Furthermore, Hyperliquide regains market share of centralized exchanges (CEX), as shown in the chart below, with its open stake currently making up around 14.6% of Binance’s, gaining momentum compared to platforms like Bybit and OKX.
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Another key factor that could further contribute to the platform’s recovery this year is portfolio margin deployment. Currently available on testnet, this feature will allow traders to borrow and lend against their collateral, opening the door to many new use cases.
Historical evidence from other exchanges, such as Bybit, suggests that the introduction portfolio margin can be a significant growth catalyst, potentially resulting in a substantial increase in trading volume for Hyperliquide.
Overall, the core metrics are gradually improving and several catalysts lie ahead, such as the growing adoption of perpetual stocks and the introduction of portfolio margining. The GLC report states:
…If improving market conditions are combined with the catalysts described above, and potentially another S3 season attracting new traders, Hyperliquid will surprise the market once again.
At the time of writing, the platform’s HYPE token is trading at around $21.84. This represents a significant 9% retracement in the last 24 hours alone, placing the altcoin 63% below its all-time high of $59.30.
Featured image from OpenArt, chart from TradingView.com
