@sickackworld

Part of the drama took place on Hyperliquid, a decentralized exchange (DEX) that offers spot trading and perpetual contracts (for background, see “The Allure of DEXs: The Rise of Decentralized Exchanges”). Starting on August 20th, a single Bitcoin “whale” (an investor holding a large amount of BTC) sold approximately $3.5 billion in BTC and immediately purchased approximately $3.4 billion in ETH. [6] While we cannot speculate on the investor’s motivations, the fact that this scale of risk transfer occurred on a DEX rather than a centralized exchange (CEX) is encouraging. In fact, on its highest trading day of the month, Hyperliquid’s spot trading volume briefly surpassed Coinbase’s spot trading volume (see Figure 3).

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