Hyperliquid surpasses Polymarket in BTC binary trading volume within days
Hyperliquid overtook Polymarket in BTC binary trading volume within days of launching the product, achieving the milestone by leveraging its existing central limit order book infrastructure, market maker setup, and zero-fee model, according to sources published May 24. The HIP-4 upgrade enabled the platform to match and then surpass Polymarket's volume in approximately two weeks. Both reports noted Hyperliquid's established liquidity infrastructure as the key factor in its rapid traction against Polymarket, which had previously dominated the BTC binary contract market. The development comes as Polymarket faces concurrent pressure from Kalshi's record volumes, a House Oversight insider-trading probe, journalistic scrutiny of suspicious wallet clusters, and direct competition on AI and pre-IPO valuation contracts.
Polymarket must now defend its core BTC binary vertical against a zero-fee competitor with matching liquidity depth. Any sustained volume loss on its largest crypto product would compound the platform's existing pressures from Kalshi's regulatory expansion and five concurrent federal probes.