HIP-3: High Costs and Diminishing Returns for Hyperliquid Builders

An analysis of the ten teams registered on Hyperliquid under the HIP-3 proposal reveals that most have locked approximately $40M in HYPE to operate perpetual markets. Data from the Hyperliquid API shows that Trade[XYZ] dominates with 97.8% of the volume, though its 30-day trading volume dropped 44.2% to $64.60B. Other participants like Entropy and Paragon have struggled to maintain market share or profitability, with five of the ten registered entities having ceased operations. The report highlights that while HIP-3 builders initially captured significant volume, their share has declined as core market activity surged, and competition remains limited by high entry costs and low fee revenue.