Multicoin Capital's latest research report delivers an optimistic valuation for Hyperliquid's native token HYPE, setting a base target price of $319 by 2028—roughly a 4x increase from current levels. The report argues that HYPE's core value driver is Hyperliquid's convergence toward the revenue model of centralized exchanges (CEXs).
Valuation Logic: CEX-Level Revenue Model
The report highlights that Hyperliquid generates stable income through high trading volume market share, with about 99% of protocol revenue used for buyback and burn of HYPE—a mechanism similar to leading CEXs using profits to buy back their platform tokens. Additional revenue streams include the HIP-3 market deployment mechanism, yield earned on USDC reserves, and diversified wallet onboarding expansion. These factors give HYPE intrinsic value akin to a “dividend-paying” token.
Key Risk: Revenue Realization Is the Core Variable
However, the report explicitly cautions that this valuation heavily depends on sustained protocol revenue growth and delivery in the coming years. If trading volume growth underperforms, competition intensifies, or regulatory changes depress revenue, the $319 target may not materialize. Investors should closely monitor Hyperliquid’s market share trajectory and revenue data.