Hyperliquid’s (HYPE) stablecoin market is becoming increasingly concentrated as liquidity continues to shift towards USD Coin (USDC) rather than native USDH.
This trend reflects investors’ preference for deeper liquidity and established payment assets over newer DeFi native stablecoins.
The Hyperliquid Foundation donated nearly $10 million to help with transition costs and ensure each of its protocols continues to operate smoothly. These are HIP-1, HIP-3, HyperEVM protocols, bridges and local markets.
Additionally, users can exchange their USDH for USDC using the same migration paths, reducing friction during migration.
According to DeFiLlama, USDC now dominates Hyperliquid’s stablecoin liquidity.
In fact, USDC makes up $5.74 billion of Hyperliquid’s $5.96 billion stablecoin pool. Conversely, USDH assets fell sharply to just $20 million.
Meanwhile, Tether (USDT) It hovers around 155 million dollars. These figures clearly show that network effects are supporting the increasing dominance of USDC.
This imbalance suggests that network effects are strengthening USDC’s leadership, making it the preferred security in spot and perpetual markets. If corporate activity continues to expand, USDCs dominance may become even stronger.
Otherwise, USDH will need to make meaningful benefits improvements to regain market share.
Protocol activity reinforces HYPE benefit
This steady transition is already translating into stronger on-chain activity as Hyperliquid continues to expand around the initial model of USDC. The shift did not disrupt user engagement.
According to DeFiLlama, this has enabled a sustained level of approximately 6,932 Daily Active Addresses and over 315,000 Daily Transactions. data.
Meanwhile, Continuous Transaction Volume It remained around $2.8 billion, strengthening Hyperliquid’s leadership in on-chain derivatives.
Growing activity also creates ongoing value for the ecosystem by generating hundreds of millions of annual Annual Fee Income. Rather than relying on speculation, these fees increasingly flow into HYPE through staking, priority fees, buybacks, and incentives.
If trading activity and USDC liquidity continue to grow together, HYPE’s long-term value capture could become even stronger. Otherwise, slower network activity may gradually reduce revenue growth.
