Hyperliquid (HYPE) is emerging as a more attractive investment compared to XRP (XRP), particularly for risk-tolerant investors. Hyperliquid, a decentralized exchange specializing in perpetual futures, has captured about 70% of the decentralized perpetuals market, generating significant trading fees—approximately $844 million in 2025. Notably, 97% of these fees are used to buy and permanently burn HYPE tokens, creating a supply scarcity that could drive prices upward as trading activity increases.
In contrast, XRP’s utility primarily serves financial institutions, with minimal benefits for individual holders. The XRP Ledger burns transaction fees, but this mechanism has resulted in a mere 0.02% reduction in circulating supply, failing to translate on-chain activity into price appreciation. XRP’s price has plummeted 62% from its 2025 peak, highlighting a weak correlation between usage and returns.
For market professionals, the key takeaway is that while both assets carry risks, Hyperliquid’s model offers a more compelling value proposition for investors seeking exposure to the crypto derivatives market, making it a potentially better choice than XRP at this time.
Source: fool.com