Hyperliquid Shifts $20M from USDH to USDC as Stablecoin Liquidity Concentrates

Stablecoin liquidity on Hyperliquid is increasingly concentrating in USD Coin (USDC), as traders move away from the network's native USDH in favor of deeper, more established settlement assets. To ease the transition, the Hyperliquid Foundation has distributed about $10 million in grants to offset migration costs and keep its ecosystem operating smoothly, including HIP1, HIP3, HyperEVM protocols, bridges, and native markets. Users can also swap USDH into USDC via the same migration routes, reducing friction during the changeover. DeFiLlama data show USDC now overwhelmingly dominates Hyperliquid's stablecoin liquidity: $5.74 billion of a $5.96 billion total stablecoin pool. USDH balances have dropped to roughly $20 million, while Tether (USDT) sits at about $155 million. The distribution highlights strong network effects behind USDC's growing lead, positioning it as preferred collateral across spot and perpetual markets. Continued institutional participation could further entrench USDC, while USDH would likely need meaningful utility upgrades to claw back share. The migration has coincided with resilient onchain activity under Hyperliquid's USDC-first model. DeFiLlama reports roughly 6,932 daily active addresses and more than 315,000 daily transactions, with perpetual trading volume holding near $2.8 billion, underscoring Hyperliquid's strength in onchain derivatives. Rising usage is also translating into annualized fee revenue in the hundreds of millions. Those fees are increasingly funneled into HYPE through staking, priority fees, buybacks, and incentives rather than being driven primarily by speculation. If trading activity and USDC liquidity continue to expand in tandem, HYPE's long-term value capture could strengthen; weaker network momentum would likely slow revenue growth. In summary, Hyperliquid's shift from USDH to USDC is reinforcing liquidity concentration while supporting continued network expansion, with future growth tied closely to sustained trading activity and fee generation.