USDC Takes the Lead as USDH Fades to Near Worthlessness

Hyperliquid's native stablecoin USDH has seen its market value dwindle to $20 million, according to DeFiLlama. This represents a significant drop in popularity as traders increasingly opt for deeper liquidity and established settlement assets like USDC instead.

The Hyperliquid Foundation has offered around $10 million in grants to assist users with migration costs and ensure the continuity of its protocols, including HIP-1, HIP-3, HyperEVM, bridges, and native markets. Additionally, users can swap their USDH for USDC through the same migration paths, reducing friction during the transition.

USDC now dominates Hyperliquid's stablecoin liquidity with $5.74 billion of its $5.96 billion stablecoin pool, while Tether trails at around $155 million. This dominance is supported by network effects and makes it the preferred collateral in spot and perpetual markets.