Hyperliquid's market share in the decentralized derivatives sector has sharply declined to 20% in December 2025, a significant drop from 80% in May. This decrease is attributed to the company's strategic pivot towards B2B infrastructure, increased competition, and the absence of liquidity incentives. In response, Hyperliquid is promoting initiatives like HIP-3 and Builder Codes, which focus on specialized markets and developer tools, showing early signs of success. Meanwhile, traders are closely monitoring altcoins as market sentiment shifts, with the fear and greed index indicating a cautious outlook.