Crypto Black Friday’s record liquidations wiped out $19 billion in positions, revealing transparency gaps between centralized and decentralized platforms. While Binance faltered, Hyperliquid remained robust, making the 10.10 crash crypto’s most significant stress test since FTX.
The crash and Binance’s recent listing issues highlighted a growing theme: the costs of centralization versus the appeal of open systems.
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The Crash That Shook Trust
Latest Update
Bloomberg reported that Hyperliquid accounted for over $10 billion of the $19 billion in liquidations while Binance dealt with outages and processed refunds. The DEX achieved 100% uptime, demonstrating resilience amid extreme volatility.
Background Context
Bitwise CIO Matt Hougan noted that blockchains “passed the stress test,” emphasizing that DeFi platforms like Hyperliquid, Uniswap, and Aave remained operational while Binance had to reimburse traders. His conclusion: decentralization maintained market integrity as leveraged traders failed.
Dune data reveals Binance leads in spot volume, while Hyperliquid’s portion stays below 10% despite consistent growth through mid-2025. The same trust gap that arose during the crash resurfaced in a different context — the listing fee controversy.
Binance Faces the Listing Backlash
Deeper Analysis
Limitless Labs’ CEO claimed that Binance requested 9% of the token supply and multimillion-dollar deposits for listings. Binance denied this, stating that deposits are refundable, and defended its Alpha program. The fairness debate intensified as trust in CEXs reached new lows.
Behind the Scenes
CZ argued that exchanges operate under varied models and suggested, “If you dislike fees, build your own zero-fee platform.” Hyperliquid responded by asserting that on its network, “there is no listing fee, department, or gatekeepers.” Spot deployment is permissionless: any project can launch a token by paying gas in HYPE, accumulating up to half of trading fees on their pairs.
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Uniswap founder Hayden Adams stated that DEXs and AMMs already provide free listing and liquidity, indicating that if projects still incur CEX fees, it is primarily for marketing.
Hyperliquid Emerges as the On-Chain Contender
Essential Facts
| Platform | Sept 2025 Volume | Market Cap |
|---|---|---|
| Hyperliquid | ≈ $200 B | ≈ $13.2 B |
| Aster | ≈ $20 B | ≈ $2.5 B |
| dYdX | ≈ $7 B monthly | $1.5 T cumulative |
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Looking Forward
VanEck confirmed Hyperliquid secured 35% of blockchain fee revenue in July. Circle integrated native USDC into the chain, and Eyenovia launched a validator and HYPE treasury. HIP-3 enabled permissionless perps, allowing builders to establish futures markets for any asset.
Grayscale reported that DEXs have approached price competitiveness with CEXs, identifying Hyperliquid as the breakout of 2025. It anticipates that DEXs could dominate the long tail of assets where transparency and community governance are paramount.
Hyperliquid’s advantage stems from its efficiency. A ten-member team operates a venue that rivals Binance’s 7,000 employees and $500M marketing budget. The DEX converts savings into token value and liquidity incentives by minimizing listing procedures and advertising costs. VanEck describes this as “profit without marketing spend”—a barrier that no centralized competitor can replicate.
The data reveals Hyperliquid’s share of Binance’s volume peaked at ~15% in August before slightly declining—indicating increasing trader interest in on-chain derivatives.
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The Road Ahead for Exchanges
Risks & Challenges
Bitwise analyst Max Shannon stated to BeInCrypto that decentralized perps could reach $20–30 trillion in annual volume within five years if regulations align. He cautioned that DEXs handling $67B daily may encounter scrutiny and require standardized oracles, audited insurance platforms, and risk management measures.
Expert Opinions
“Perp DEXs can fail, but their risks are transparent and on-chain,” stated Max Shannon, Bitwise.
“Hyperliquid has everything it takes to become the House of Finance,” asserted OAK Research.
“Centralized exchanges will remain relevant by adopting hybrid models—integrating non-custodial trading, robust liquidity, and regulatory confidence,” remarked Gracy Chen, Bitget CEO to BeInCrypto.
Bottom Line
Paradigm urged the CFTC to acknowledge DeFi transparency, arguing that decentralized trading already fulfills key regulatory objectives like equitable access and auditability. With regulators adopting a more favorable attitude towards DeFi and institutions moving towards on-chain frameworks, Hyperliquid’s permissionless environment stands out as crypto’s most credible alternative to centralized authority—where transparency supersedes trust as the cornerstone of finance.
