akstar82
@akstar82
CEX vs DEX: A War for Market Share and Trading Structure (Why HyperEVM Matters in the Battle for Dominance?) The Web3 trading platform landscape is undergoing seismic shifts, especially in derivatives. At the heart of this transformation lies the explosive rise of @HyperliquidX , and the defensive posture of posture of @binance , the long-time incumbent. [TL;DR] 1. Hyperliquid is growing on the back of actual usage, verifiable positions, and self-sustaining infrastructure. 2. Binance is fighting back through synthetic dominance—optics over substance. 3. As the market matures, the number of users who prioritize signal over noise will continue to rise. 4. The expansion of Precompile and HyperEVM could make Hyperliquid a dominant spot venue as well. 5. If Binance wants to retain its throne, it must shift focus from “appearing dominant” to actually improving product quality and transparency.
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akstar82
@akstar82
Quick note before we get started: I’ve been with Binance since day one. Now let’s dig into what’s really going on behind the numbers. 📈1. Hyperliquid’s Ascent: 10x Volume Growth in One Year As of May 2025, Hyperliquid recorded its all-time high monthly perpetuals volume of $24.8 billion. Just one year earlier, in May 2024, it held less than 2% of Binance’s volume. Today, it accounts for approximately 10.5% of Binance’s futures volume. The absolute gap remains large, but the growth velocity and product fundamentals suggest that Hyperliquid may be the only credible contender capable of disrupting Binance’s perpetuals monopoly.
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akstar82
@akstar82
🛡️ 2. Binance’s Defensive Playbook: Volume Preservation at All Costs To hedge against market share erosion, Binance has employed a multi-pronged strategy across its centralized exchange and BNB Chain-based DeFi ecosystem. - Projects like Aster, a BSC-based perpetual DEX, have shown a recent spike in trading volume. - However, their user base and TVL remain negligible. - Many observers suspect that internal MM or circular trading accounts for a significant share of the volume. This indicates that Binance may be transitioning from real CEX-based dominance to onchain volume inflation—not to lead, but to maintain optical parity.
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akstar82
@akstar82
⚔️ 3. The Real Battleground Is Spot, Not Perps Binance’s core strength has always been in the spot market, not perps. Hyperliquid’s spot market uses a centralized orderbook model while settling in native assets rather than stablecoins like USDC. This creates a compelling incentive for users to hold and trade assets directly on Hyperliquid—making it a legitimate threat to Binance’s influence. Over the last 6 months, Hyperliquid’s spot share (relative to Binance) has more than doubled. While perp volume growth has been more dramatic, the spot trend is quietly accelerating, especially with the upcoming expansion of Precompile and HyperEVM.
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akstar82
@akstar82
🧠 4. Why HyperEVM Changes Everything If we revisit how BSC helped Binance grow its empire, we can better understand what HyperEVM might unlock for Hyperliquid. As the EVM ecosystem grows and more useful dApps emerge, users will have a real reason to hold spot assets on Hyperliquid—not just to trade, but to deploy into DeFi strategies of their choosing. Unlike traditional exchanges that offer Earn or staking yields in siloed formats, Hyperliquid’s architecture enables true composability and capital efficiency. As TVL increases, so does volume—and over time, this naturally leads to increased spot market share.
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akstar82
@akstar82
🎯 5. Binance Wallet Alpha: A Tactical Move to Defend Spot Volume In 2025, Binance launched its Wallet Alpha campaign to retain its grip on spot market optics. - Projects are launched at intentionally low FDVs, often exclusive to Binance Wallet users. - Trading pairs are created on BNB Chain with incentives to trade-to-earn. - Users are rewarded simply for interacting with the assets, regardless of liquidity quality. The result? Inflated spot volume that creates the perception of vibrant market activity. But as the market matures and user awareness grows, such strategies start to look increasingly artificial—and even extractive. Is it sustainable to sacrifice project integrity and user trust just to preserve dominance in public metrics?
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akstar82
@akstar82
🧩 6. Quality vs Optics: Diverging Philosophies Hyperliquid continues to scale based on real users, real positions, and organic ecosystem participation. Binance, on the other hand, increasingly relies on metrics management, FDV manipulation, and incentive games to maintain dominance. As more traders shift toward data-driven decision-making, Hyperliquid’s product-first approach positions it as a formidable long-term force. The onchain shift is no longer a theory—it’s unfolding in real time. One thing is clear: metrics can be gamed, but product-market fit cannot.
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