Hyperliquid Builder Program Becomes Major Revenue Engine for Wallets and Bots: CoinGecko

The builder program operates on a permissionless model, allowing developers to set their own fee rates on top of the base protocol fee. Crucially, these builders retain 100% of the fees they charge, with no gatekeeping or revenue share required by the protocol itself. This structure fosters competition among builders based on product quality, user experience, and pricing.

CoinGecko's analysis highlighted several top performers within this ecosystem. Phantom emerged as the leader in cumulative revenue, accumulating $20.63 million and representing almost 32% of total earnings among the top 10 builders since the program's inception. It also boasts the largest user base, with 137,496 users, generating an average revenue of approximately $150 per user.

Following Phantom, Based secured the second position with $15.05 million in revenue from a higher trading volume of $44 billion, compared to Phantom’s $39.4 billion. The difference in earnings, despite higher throughput, is attributed to Based's lower builder fee of 0.025% compared to Phantom's 0.05%. Together, Phantom and Based account for nearly 55% of the total top-10 builder revenue.

MetaMask ranked fourth, earning $6.51 million with a 0.1% fee – the highest among the top builders. Despite this higher charge, it attracted 43,761 users and processed $7.46 billion in trading volume, with an average revenue per user of $149. Other notable builders included Insilico and Axiom, showcasing diverse strategies in fee structures and user acquisition.

Beyond the builder program, Hyperliquid's growth is also being driven by broader ecosystem developments. This includes traction in its HIP-3 permissionless perpetual markets, which are expanding activity into areas like pre-IPO trading venues. The launch of spot HYPE Exchange Traded Funds (ETFs) has also reportedly improved distribution and investor access to the token, indicating strong underlying demand.

Further enhancements, such as the recent launch of HIP-4 outcome markets, are extending Hyperliquid's reach into prediction markets, positioning it alongside established platforms. The introduction of priority fees is also expected to boost incremental protocol revenue and deepen token utility. FalconX estimates that formal support for USDC by Coinbase and Circle could contribute up to $160 million in annualised revenue for Hyperliquid.

Why it matters for Australian investors

The impressive revenue generation through Hyperliquid's builder program highlights a growing trend in decentralised finance (DeFi): the power of ecosystem incentives to drive innovation and adoption. For Australian investors, this case demonstrates how a protocol can successfully decentralise its distribution and user acquisition efforts, moving beyond traditional centralised exchange models.

This model creates opportunities for developers to build valuable applications on top of existing protocols, potentially leading to more competitive fees and better user experiences. Australian investors who engage with DeFi protocols via various wallets or trading bots might implicitly be contributing to, or benefiting from, such programs without direct knowledge. Understanding these underlying mechanisms can inform decisions about which platforms and interfaces offer the best value.

While Hyperliquid itself is a global protocol, the success of its builder program underscores the potential for similar decentralised economic models to emerge and thrive across the crypto landscape. Australian investors often seek diversified exposure within their portfolios, and understanding these innovative revenue structures can provide insight into the long-term viability and growth potential of various crypto projects.

The competition among builders based on product quality, user experience, and pricing is a positive for consumers. It encourages better services and potentially lower costs for end-users, an aspect that Australian investors, accustomed to diverse services from local exchanges like CoinSpot, Independent Reserve, Swyftx, and BTC Markets, would appreciate. These local platforms are continually evolving, and decentralised approaches offer new avenues for feature development and user engagement.

Moreover, the expansion into areas like pre-IPO trading venues and prediction markets signifies a broadening utility for DeFi platforms. As the Australian regulatory landscape for digital assets continues to evolve, with bodies like ASIC and AUSTRAC playing key roles, platforms offering diverse, permissionless financial products could see increasing interest from sophisticated investors seeking alternative opportunities.

Impact on the AUD market

While the Hyperliquid builder program's direct impact on the Australian dollar (AUD) market is not explicitly stated in the source, the broader implications for the global digital asset ecosystem are relevant. The success of such a programme contributes to the overall growth and liquidity of the crypto market, which can indirectly influence AUD-denominated crypto assets.

Increased activity in perpetuals trading, driven by efficient builder-led distribution, could lead to higher demand for stablecoins like USDC. Although USDC is primarily USD-pegged, its increased utility within DeFi ecosystems contributes to overall market depth, from which Australian investors might see flow-on effects through their AUD-pegged stablecoin holdings or when converting AUD to other cryptocurrencies.

The potential for new spot HYPE ETFs also highlights the ongoing institutionalisation of crypto. Should similar products become available and accessible to Australian investors, perhaps through local financial institutions or platforms, they could provide a more regulated and familiar entry point into the asset class. This trend generally supports the maturation of the crypto market, making it more appealing to a broader Australian investment base.

Additionally, the growth of permissionless markets and prediction platforms signifies a move towards more sophisticated and diverse financial instruments within DeFi. As Australian investors become more comfortable with decentralised applications, the demand for clear regulatory guidance from bodies like the ATO regarding tax treatment of such activities, including specific DeFi earnings, will undoubtedly grow, ensuring compliance and fostering confidence.

Any substantial increase in global crypto trading volumes, partly fuelled by innovative builder programs, can also feed into the liquidity available on Australian exchanges. This enhanced liquidity could result in tighter spreads and more efficient trading for AUD-denominated crypto pairs, benefiting traders and investors seeking to enter or exit positions locally.

What to watch next

Australian investors should monitor how other decentralised finance protocols might adopt similar builder-centric models. The Hyperliquid example provides a blueprint for how protocols can outsource layers of distribution and user experience, fostering a competitive environment among integrators.

Pay close attention to discussions around the formal support for USDC by major players like Coinbase and Circle, and how this might translate into increased utility and adoption within the broader crypto ecosystem. The estimated $160 million in annualised revenue a direct result of this integration could signal a significant shift in stablecoin dynamics, impacting global liquidity and potentially Australian market accessibility.

Beyond individual protocols, observe how the regulatory environment in Australia adapts to the evolving landscape of DeFi. As more sophisticated products like perpetuals, pre-IPO markets, and prediction platforms gain traction, Australian regulators like ASIC and AUSTRAC will likely continue to formulate guidance for investors and service providers. This includes clarity on the tax implications of various DeFi activities, including staking, yield farming, and trading fees from builder programs.

Finally, keep an eye on the performance of the HYPE token and any further developments around its associated ETFs. If these products achieve significant traction globally, it could serve as a model for how other DeFi tokens gain broader investor access, potentially leading to more diverse investment opportunities for Australians looking to expand their crypto portfolios beyond traditional Bitcoin and Ethereum holdings.

Consider the ongoing competition among builders. Factors like user experience, fee structures, and the range of services offered by these third-party interfaces will continue to evolve, providing investors with more choices and potentially better trading conditions. This dynamic, user-focused competition is a hallmark of a maturing decentralised market.