Asset manager Bitwise published a report arguing that $HYPE, the native token of decentralized exchange Hyperliquid, is “severely undervalued” by the market. The token surged over 8% following the release and was trading at $48.10 at press time.
Two Valuation Mistakes
Bitwise CIO Matt Hougan identified two key errors in market pricing. First, investors still see Hyperliquid as a crypto derivatives venue, ignoring its expansion into stocks, commodities, forex and prediction markets — a “financial super app”. Second, they fail to grasp how $HYPE captures value from trading activity. Hougan stated: “Buying $HYPE today is like buying a single crypto exchange but getting a universal financial giant.”
99% Fees Back to Token Holders
Hyperliquid’s estimated annualized revenue now stands at $800 million to $1 billion. Yet $HYPE trades at only 10 to 14 times its buyback earnings, a discount to traditional platforms like Robinhood or CME Group, which grow much slower but command higher multiples.
The tokenomics model is simple: 99% of trading fees go toward buying back $HYPE. As volume rises, buyback pressure automatically supports the token price.
Regulatory Tailwinds and Big-Name Alliances
Bitwise noted that new SEC Chair Paul Atkins publicly supports a single regulatory framework for financial super apps, aligning with Hyperliquid’s vision. Additionally, Hyperliquid’s recent partnerships with Coinbase and Circle could redirect stablecoin revenues to the trading platform, boosting long-term demand for $HYPE while squeezing Circle’s margins.