Hyperliquid's Rapid Growth Mirrors Robinhood's Success
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 36 minutes ago
0mins
Source: Fool
- Market Share Growth: Hyperliquid commands over 60% of on-chain derivative open interest, processing an impressive $2.9 trillion in activity in 2025, indicating strong performance in a competitive crypto market that may attract more investor interest.
- Token Buyback Mechanism: The platform channels 97% of trading fees into HYPE token buybacks, repurchasing $192 million worth in Q1 2023, with all repurchased tokens burned, thereby reducing circulating supply and enhancing the value for holders, which boosts user investment confidence.
- Direct Revenue-Holder Value Link: Hyperliquid's revenue model has a more direct correlation with holder value compared to traditional stock earnings, suggesting that this design could influence the future development of cryptocurrency platforms, appealing to investors seeking high returns.
- Competitive Environment Challenges: While Hyperliquid shows potential to become the next Robinhood, it faces significant competition from established players like Robinhood since its launch in 2023, which may impact its long-term growth and market share expansion.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 73.640
Low
130.00
Averages
156.24
High
181.00
Current: 73.640
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hyperliquid's Rapid Growth Mirrors Robinhood's Success
- Market Share Growth: Hyperliquid commands over 60% of on-chain derivative open interest, processing an impressive $2.9 trillion in activity in 2025, indicating strong performance in a competitive crypto market that may attract more investor interest.
- Token Buyback Mechanism: The platform channels 97% of trading fees into HYPE token buybacks, repurchasing $192 million worth in Q1 2023, with all repurchased tokens burned, thereby reducing circulating supply and enhancing the value for holders, which boosts user investment confidence.
- Direct Revenue-Holder Value Link: Hyperliquid's revenue model has a more direct correlation with holder value compared to traditional stock earnings, suggesting that this design could influence the future development of cryptocurrency platforms, appealing to investors seeking high returns.
- Competitive Environment Challenges: While Hyperliquid shows potential to become the next Robinhood, it faces significant competition from established players like Robinhood since its launch in 2023, which may impact its long-term growth and market share expansion.
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Robinhood's Acquisition of WonderFi Approved by Regulators
- Acquisition Approval: Robinhood Markets' acquisition of WonderFi Technologies has received approval from the Canadian Investment Regulatory Organization, with a total equity value of C$250 million, marking a strategic move to accelerate Robinhood's expansion in the Canadian crypto market.
- Deal Background: The acquisition agreement was reached in May last year, aimed at enhancing Robinhood's competitiveness in the cryptocurrency market by integrating WonderFi's resources and technology, particularly in Canada.
- Regulatory Requirements: No further regulatory approvals are needed for the merger, streamlining the consolidation process, which is expected to close on or about June 1, 2026, further solidifying Robinhood's market position in North America.
- Market Impact: As the deal progresses, Robinhood is poised to leverage WonderFi's technological advantages to strengthen its capabilities in the cryptocurrency sector, despite current market pressures from inflation and rising interest rates.
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- Regulatory Dispute: Legal battles between the Commodity Futures Trading Commission and 17 states over the jurisdiction of prediction markets are underway, with states arguing these markets resemble gambling, which could impact future market structures and operational models.
- Corporate Investment Strategies: CEOs of Flutter Entertainment and DraftKings have both expressed intentions to continue investing in prediction market platforms despite regulatory risks, demonstrating their confidence in long-term market growth, which may drive further industry development.
- Diverse Market Opportunities: CME Group's CEO noted that, aside from sports event contracts, other event contracts related to economics, politics, and financial predictions are experiencing less scrutiny, with estimates suggesting that by 2030, sports contracts will only account for 30% of trading volumes.
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- Challenge to Traditional Finance: Saylor emphasized that in the traditional finance system, banks dictate customers' financing terms, limiting choices, while tokenization promotes the liberalization of capital markets by increasing liquidity and volatility of capital assets, posing a direct challenge to traditional banking and brokerage businesses.
- Anticipation of Legal Framework: As the Clarity Act progresses through Congress, the potential establishment of a legal framework for fully on-chain real-world assets is expected to further legitimize tokenized securities, facilitating their integration into mainstream finance.
- Active Market Participation: Platforms like Coinbase, Robinhood, and Gemini are already offering tokenized stock trading to select customers, indicating a growing demand for tokenized financial products and signaling a transformative shift in future financial markets.
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- Diverse Revenue Streams: The company generates income not only from advertising based on user attention and engagement but also through direct-to-consumer device sales, OEM partnerships, and embedded financial services, enhancing its competitive position in the market.
- Strategic Acquisition Moves: By acquiring the popular anonymous social app NGL, which is heavily used by Gen Z, Mode Mobile rapidly expanded its user base and increased the appeal of its EarnOS platform, demonstrating strategic foresight in building a comprehensive ecosystem.
- Investment Opportunities and Risks: Although Mode Mobile remains a private company, its Regulation A offering allows all investors to participate with a minimum investment of around $2,000; however, investing in such startups carries risks like illiquidity and market volatility, necessitating careful evaluation by potential investors.
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Michael Saylor: Tokenization Will Reshape Financial Markets
- Potential of Tokenization: Michael Saylor highlighted that the tokenization of financial assets could transform how credit and yield are priced, posing a direct challenge to traditional banking and brokerage businesses by fostering a free market for capital formation.
- Limitations of Traditional Finance: He emphasized that in the traditional finance system, banks dictate financing terms, leaving customers with no options for credit and yield, whereas tokenization offers asset owners increased liquidity and volatility.
- Impact of Market Structure Bill: As the Clarity Act progresses through Congress, it is expected to provide a legal framework for tokenizing real-world assets, which could further mainstream tokenized securities and alter how investors trade.
- Regulatory Expectations: Investors are looking forward to guidance from the Securities and Exchange Commission on tokenized stocks, potentially allowing blockchain-based stock trading to occur alongside traditional markets, thereby broadening access for retail investors.
See More
Hyperliquid's Rapid Growth Mirrors Robinhood's Success
- Market Share Growth: Hyperliquid commands over 60% of on-chain derivative open interest, processing an impressive $2.9 trillion in activity in 2025, indicating strong performance in a competitive crypto market that may attract more investor interest.
- Token Buyback Mechanism: The platform channels 97% of trading fees into HYPE token buybacks, repurchasing $192 million worth in Q1 2023, with all repurchased tokens burned, thereby reducing circulating supply and enhancing the value for holders, which boosts user investment confidence.
- Direct Revenue-Holder Value Link: Hyperliquid's revenue model has a more direct correlation with holder value compared to traditional stock earnings, suggesting that this design could influence the future development of cryptocurrency platforms, appealing to investors seeking high returns.
- Competitive Environment Challenges: While Hyperliquid shows potential to become the next Robinhood, it faces significant competition from established players like Robinhood since its launch in 2023, which may impact its long-term growth and market share expansion.
See More
Robinhood's Acquisition of WonderFi Approved by Regulators
- Acquisition Approval: Robinhood Markets' acquisition of WonderFi Technologies has received approval from the Canadian Investment Regulatory Organization, with a total equity value of C$250 million, marking a strategic move to accelerate Robinhood's expansion in the Canadian crypto market.
- Deal Background: The acquisition agreement was reached in May last year, aimed at enhancing Robinhood's competitiveness in the cryptocurrency market by integrating WonderFi's resources and technology, particularly in Canada.
- Regulatory Requirements: No further regulatory approvals are needed for the merger, streamlining the consolidation process, which is expected to close on or about June 1, 2026, further solidifying Robinhood's market position in North America.
- Market Impact: As the deal progresses, Robinhood is poised to leverage WonderFi's technological advantages to strengthen its capabilities in the cryptocurrency sector, despite current market pressures from inflation and rising interest rates.
See More
Regulatory Battle Intensifies Over Prediction Markets
- Market Growth Momentum: Despite legal uncertainties, Kalshi's valuation has surged from $11 billion in December to $22 billion, indicating sustained investor confidence in prediction markets and reflecting the sector's potential profitability.
- Regulatory Dispute: Legal battles between the Commodity Futures Trading Commission and 17 states over the jurisdiction of prediction markets are underway, with states arguing these markets resemble gambling, which could impact future market structures and operational models.
- Corporate Investment Strategies: CEOs of Flutter Entertainment and DraftKings have both expressed intentions to continue investing in prediction market platforms despite regulatory risks, demonstrating their confidence in long-term market growth, which may drive further industry development.
- Diverse Market Opportunities: CME Group's CEO noted that, aside from sports event contracts, other event contracts related to economics, politics, and financial predictions are experiencing less scrutiny, with estimates suggesting that by 2030, sports contracts will only account for 30% of trading volumes.
See More
Tokenization Set to Transform Financial Asset Markets
- Market Potential of Tokenization: Michael Saylor stated on CNBC that tokenization creates a free market for credit formation and yield for asset owners, breaking the traditional finance system's control by banks over financing terms, allowing asset owners to flexibly choose the best credit conditions and highest yields.
- Challenge to Traditional Finance: Saylor emphasized that in the traditional finance system, banks dictate customers' financing terms, limiting choices, while tokenization promotes the liberalization of capital markets by increasing liquidity and volatility of capital assets, posing a direct challenge to traditional banking and brokerage businesses.
- Anticipation of Legal Framework: As the Clarity Act progresses through Congress, the potential establishment of a legal framework for fully on-chain real-world assets is expected to further legitimize tokenized securities, facilitating their integration into mainstream finance.
- Active Market Participation: Platforms like Coinbase, Robinhood, and Gemini are already offering tokenized stock trading to select customers, indicating a growing demand for tokenized financial products and signaling a transformative shift in future financial markets.
See More
Mode Mobile: Revolutionizing Smartphone Usage Value
- Innovative Business Model: Mode Mobile transforms users' smartphone usage time into cash rewards through its EarnOS software and EarnPhones platform, allowing users to earn points from daily activities like gaming, music listening, and video watching, showcasing its unique value proposition in consumer tech.
- Diverse Revenue Streams: The company generates income not only from advertising based on user attention and engagement but also through direct-to-consumer device sales, OEM partnerships, and embedded financial services, enhancing its competitive position in the market.
- Strategic Acquisition Moves: By acquiring the popular anonymous social app NGL, which is heavily used by Gen Z, Mode Mobile rapidly expanded its user base and increased the appeal of its EarnOS platform, demonstrating strategic foresight in building a comprehensive ecosystem.
- Investment Opportunities and Risks: Although Mode Mobile remains a private company, its Regulation A offering allows all investors to participate with a minimum investment of around $2,000; however, investing in such startups carries risks like illiquidity and market volatility, necessitating careful evaluation by potential investors.
See More
Michael Saylor: Tokenization Will Reshape Financial Markets
- Potential of Tokenization: Michael Saylor highlighted that the tokenization of financial assets could transform how credit and yield are priced, posing a direct challenge to traditional banking and brokerage businesses by fostering a free market for capital formation.
- Limitations of Traditional Finance: He emphasized that in the traditional finance system, banks dictate financing terms, leaving customers with no options for credit and yield, whereas tokenization offers asset owners increased liquidity and volatility.
- Impact of Market Structure Bill: As the Clarity Act progresses through Congress, it is expected to provide a legal framework for tokenizing real-world assets, which could further mainstream tokenized securities and alter how investors trade.
- Regulatory Expectations: Investors are looking forward to guidance from the Securities and Exchange Commission on tokenized stocks, potentially allowing blockchain-based stock trading to occur alongside traditional markets, thereby broadening access for retail investors.
See More
