After a tumultuous conclusion to 2025, characterized by heightened volatility and the impactful October 10 crypto crash, Hyperliquid (HYPE), one of the market’s largest decentralized exchanges (DEXs), faced significant challenges as it entered 2026. 

With less than two weeks remaining in January, market research firm GLC released an interesting report assessing Hyperliquid’s current standing and evaluating its recovery metrics.

Post-October 10 Downturn

The report highlights that Hyperliquid’s trading volume and open interest suffered a considerable decline following the liquidation event on October 10, marking the onset of a downtrend for the platform. 

Since that date, trading volume has decreased by 44.3%, dropping from $10.17 billion to $5.66 billion. Open interest has also experienced a decline of 35.7%, falling from $14.75 billion to $9.48 billion. 

However, there are signs of recovery. Notably, since December 1, 2025, trading volume on the platform has seen a slight decrease of 3.2%, while open interest has surged by 45.6%.

Year-to-date metrics reveal a more optimistic picture: trading volume has increased by 59.2%, rising from $3.56 billion to $5.66 billion, and open interest has grown by 24.7%, going from $7.60 billion to $9.48 billion. 

While open interest has started to recover since the October event, trading volume has not rebounded at the same rate. This disparity has caused the volume-to-open interest (OI) ratio to decline from 0.90 on December 1 to 0.60 as of mid-January, likely due to decreased market volatility, which has dampened trading activity.

Despite these challenges, there is a positive trend indicating that traders are beginning to open larger positions on Hyperliquid, and the recovery in volume on a year-to-date basis is promising. 

The report suggests that open interest is a more reliable indicator of trader confidence and long-term positioning, while trading volume tends to be influenced by broader market conditions. Although current metrics remain below pre-October 10 levels, the trend indicates that recovery is underway.

Will 2026 Mark A Surprising Resurgence For Hyperliquid?

The recent volume and open interest data are said to be bullish, with the 7-day average volume increasing by over 130% year-to-date, primarily driven by one active deployer, XYZ, which accounts for roughly 80% of that volume. The 7-day average open interest has also risen by more than 60%.

Moreover, Hyperliquid is regaining market share from centralized exchanges (CEXs) as seen in the chart below, with its open interest currently representing about 14.6% of Binance’s, gaining momentum against platforms like Bybit and OKX.

Another key factor that could further contribute to the platform’s recovery this year is the rollout of portfolio margin. Currently live on testnet, this feature will enable traders to borrow and lend against their collateral, unlocking numerous new use cases. 

Historical evidence from other exchanges, such as Bybit, suggests that introducing portfolio margin can be a significant growth catalyst, potentially translating to a substantial increase in trading volume for Hyperliquid.

Overall, core metrics are gradually improving, and several catalysts lie ahead, such as the growing adoption of equity perpetuals and the introduction of portfolio margin. GLC’s report asserts: 

…If improving market conditions are combined with the catalysts outlined above, and potentially another S3 season bringing in 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 within 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