Iran war volatility is driving oil trading boom on Hyperliquid, says JPMorgan

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Iran war volatility is driving oil trading boom on Hyperliquid, says JPMorgan Round-the-clock oil trading on Hyperliquid is drawing investors beyond crypto as geopolitical shocks expose gaps in traditional markets, the bank said. By Will Canny , AI Boost | Edited by Stephen Alpher Mar 20, 2026, 12:45 p.m. Make us preferred on Google Iran war volatility is driving oil trading boom on Hyperliquid, says JPMorgan. (Shutterstock, modified by CoinDesk) What to know : Iran-driven oil volatility pushed traders to Hyperliquid as CME markets closed, with JPMorgan noting a surge in 24/7 perpetual futures trading. Hyperliquid’s oil contract hit $1.7 billion daily volume and around $300M in open interest as investors sought continuous price discovery. The bank said demand for round-the-clock access is driving DEX growth and taking share from mid-tier centralized exchanges. Oil volatility triggered by the Iran conflict is pushing traders onto decentralized exchanges (DEXs) like Hyperliquid, where markets never close, Wall Street investment bank JPMorgan said in a Wednesday report. The bank flagged a surge in activity from non-crypto investors using perpetual futures, derivatives with no expiry, to gain round-the-clock oil exposure. Unlike traditional venues, these contracts trade 24/7 and use funding rates to track spot prices. "In particular, oil trading exploded on the Hyperliquid exchange early this month when the Iran war erupted as CME traders were unable to react when Iranian infrastructure strikes broke over the weekend," wrote analysts led by Nikolaos Panigirtzoglou. Market volatility spiked following the outbreak of war in the Middle East, with oil prices leading sharp moves as traders reacted to supply risks and geopolitical uncertainty. The initial shock was amplified by thin liquidity outside traditional trading hours, driving wider price swings and pushing investors toward venues offering continuous, 24/7 market access. A decentralized exchange (DEX) is a peer-to-peer marketplace where users trade crypto directly without intermediaries. Unlike centralized exchanges, DEXs are non-custodial, meaning users retain control over their private keys and funds. Rather than relying on a central operator, DEXs use smart contracts to automatically execute trades and settle them onchain. These trustless systems are a fast-growing part of the crypto market and are driving new types of financial products. With CME markets shut over the weekend, traders turned to Hyperliquid’s CL-USDC perpetual, which stayed open for price discovery. The contract, margined in USDC with up to 20x leverage, hit $1.7 billion in peak daily volume and is now the platform’s third-most traded product, the bank said. Open interest has climbed to about $300 million. More broadly, the analysts said demand for 24/7 access to traditional assets is accelerating interest in DEXs. Platforms like Hyperliquid use onchain order books rather than automated market makers, offering tighter spreads and more precise execution closer to traditional markets. Features such as sub-second finality and portfolio margining are further attracting institutional traders by enabling faster execution and more capital-efficient strategies. As a result, DEXs are taking share from mid-tier centralized exchanges in crypto derivatives, driven by speed, liquidity, self-custody and continuous market access, according to the analysts. The trend is likely to expand beyond commodities as DEXs capitalize on a key gap in traditional finance: markets that don’t close, the report added. Hyperliquid's HYPE token is up roughly 25% year-to-date, outperforming much of the broader crypto market. Read more: Iranian crypto outflows jump 700% minutes after U.S.-Israeli airstrikes, Elliptic says AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Coinbase's bitcoin yield fund goes onchain with Apex's tokenization push By Krisztian Sandor , Helene Braun | Edited by Stephen Alpher 16 hours ago The Coinbase Bitcoin Yield Fund's tokenized share class runs on Base as the $3.5 trillion fund services giant Apex applies tokenization across its business. What to know : Coinbase Asset Management (CBAM) is launching a tokenized share class of its Bitcoin Yield Fund on Base in partnership with $3.5 trillion fund services giant Apex Group. The launch underscores a broader push by major asset managers to bring funds on blockchain rails to cut costs, speed up settlement and expand distribution. Available initially to non-U.S. investors, CBAM said it plans to bring the U.S. version of its bitcoin yield fund onchain as well. Read full story Latest Crypto News Bitcoin holds steady, with one analyst seeing the upside emerging 1 hour ago Crypto market steadies as derivatives signal caution, macro pressure builds 1 hour ago Ripple data reveals stablecoins are becoming the go-to tool for corporate treasury 3 hours ago Bitcoin’s price action looks dangerously similar to the pattern that sent it crashing to $60,000 5 hours ago Bitcoin jumps to $70,800 as oil retreats; ether and XRP lag 7 hours ago Morgan Stanley sets MSBT ticker and $1 million seed capital for bitcoin ETF 7 hours ago Top Stories Crypto markets – and the American people – deserve clarity 16 hours ago Crypto Clarity Act inches toward Senate hearing as lawmakers weigh legislative trades 14 hours ago Wall Street heavyweight Cantor among investment banks pitching FalconX for its potential IPO 17 hours ago As crypto trading platforms race to deploy AI agents, here's what a Nasdaq engineer is seeing 20 hours ago Bitcoin $20,000 put option is third most popular strike ahead of quarterly expiry 22 hours ago