Hyperliquid posted $190.87 million in protocol revenue for the third quarter of 2026, according to a new report from the Hyperliquid Research Collective, with revenue rising 21.7% from the prior quarter. The period also brought fresh highs for trading participation and open interest, as the platform averaged 65,161 daily active traders and ended September with $16.76 billion in open interest.

The report, covering July through September, described broader growth in trading activity and tokenized financial products while also underscoring limits that remain in place. Hyperliquid was still not open to US users at the end of the quarter, even as a proposal tied to Kraken parent Payward sought to establish a regulated venue for that market.

Revenue growth was helped by new USDC reserve income

HRC said nearly half of the quarter's revenue increase came from a new source: USDC reserve income that began accruing on August 27. That contribution totaled $17.26 million in a little over a month.

Including that income stream, protocol revenue reached $190.87 million. Excluding it, trading and network revenue came to $173.61 million, which still represented a 10.7% increase from Q2. On a year-over-year basis, total protocol revenue was down 36.5%, according to the report.

Trading activity expanded across the platform

User activity continued to rise in Q3. The average number of daily active traders increased 20% from the previous quarter, marking a third straight record, while cumulative trading volume climbed 9.3% to $730.6 billion.

Open interest showed the sharpest jump among the headline operating metrics. By the end of September, it stood at $16.76 billion, up 79.9% quarter over quarter. HRC presented those figures as evidence of stronger engagement across the exchange during the period.

HIP-3 markets grew, with equities taking the lead

The report also highlighted continued growth in HIP-3, the framework that lets third-party teams launch their own trading venues on Hyperliquid infrastructure. Quarterly HIP-3 volume rose 23% to $262 billion, equal to 35.9% of total derivatives volume on the platform.

Within that segment, market composition shifted notably. Equities surpassed commodities and made up 58.8% of HIP-3 volume. Equity trading reached $153.8 billion, or 2.6 times the level of the previous quarter, while commodities volume fell 47.7% to $45.6 billion.

Even with the segment's expansion, activity remained highly concentrated. Trade[XYZ] accounted for 98.9% of HIP-3 volume in Q3, while other operators including EntropyIO, Paragon and Markets by Kinetiq held much smaller shares.

US market plans remained under review as buybacks drew attention

One of the quarter's most closely watched developments was the push toward a US venue. HRC pointed to President Donald Trump's August 19 statement that the CFTC was working to bring Hyperliquid to the United States in a compliant way, but stressed that the remark did not amount to authorization.

On September 16, Payward proposed launching a venue for US clients based on HIP-3. Bitnomial is expected to act as operator, with NinjaTrader Clearing providing client access. The proposal was still awaiting regulatory approval at the end of September.

The quarter also renewed debate over capital allocation. Hyperliquid's Assistance Fund spent $148.68 million buying back 2.04 million HYPE at an average price of $72.93. That was 26.4% fewer tokens than in Q2 despite spending rising 5.7%. In the report foreword, Syncracy Capital's Sunny Shi argued buybacks remain appropriate at this stage, while also saying independent teams building on Hyperliquid should play a larger role in future growth.

Stablecoin supply rose even as TVL fell

Beyond exchange activity, HRC said the stablecoin supply on HyperEVM increased 27.2% quarter over quarter to $7.1 billion. Over the same period, total value locked on HyperEVM declined 17.4% to $1.19 billion.

The report presented that divergence as a sign that higher stablecoin balances and rising volumes do not necessarily translate into stronger TVL. For now, the next confirmed step on the US expansion front remains regulatory review of the Payward proposal, while Hyperliquid's direct access for US users was still closed at quarter-end.

Source: incrypted.com