USDH down to $20M as USDC eats 96% of Hyperliquid's stablecoin buffet 🍽️

Hyperliquid's stablecoin market has tilted decisively toward USD Coin, with native USDH shrinking to roughly $20 million as USDC captures the overwhelming share of on-chain liquidity, according to DeFiLlama data. USDC now accounts for $5.74 billion of Hyperliquid's $5.96 billion stablecoin pool, while Tether trails at approximately $155 million. The composition underscores how traders have consolidated around a single, deep settlement asset across spot and perpetual markets.

To smooth the transition, the Hyperliquid Foundation has deployed about $10 million in grants covering migration costs across HIP-1, HIP-3, HyperEVM protocols, bridges, and native markets. Users can swap USDH for USDC through the same migration paths, a design intended to limit friction during the shift. Despite the migration, USDH holdings have fallen sharply, indicating that network effects have continued to favor USDC's incumbency.

On-chain activity has remained stable through the change. Hyperliquid recorded approximately 6,932 daily active addresses and more than 315,000 daily transactions, with perpetual trading volume holding near $2.8 billion, per DeFiLlama. The platform continues to lead on-chain derivatives by these measures.

Fee generation has scaled with usage. Annualized fee revenue sits in the hundreds of millions, and the protocol routes a growing share of those proceeds to $HYPE through staking rewards, priority fees, buybacks, and incentives. The mechanism ties token value capture to network activity rather than to speculative demand, though the degree of that linkage depends on sustained trading volume and stablecoin liquidity.