Multicoin Capital Issues Long-Term HYPE Valuation
Leading crypto venture firm Multicoin Capital has published a report projecting a base valuation target of $319 for Hyperliquid's native token HYPE by 2028. With HYPE currently trading around $80, the report implies roughly 4x upside. The prediction is anchored on Hyperliquid's growing market share in derivatives trading and its unique tokenomics model.
Core Valuation Drivers: CEX-Like Profit Model
The report argues that the core of HYPE's valuation lies in Hyperliquid's emulation of centralized exchange (CEX) efficient profit mechanisms. Key components include:
- High trading market share: Hyperliquid has captured a significant share of the perpetuals market, with volume consistently rising.
- 99% protocol revenue used for buyback & burn: Hyperliquid channels the vast majority of its fee revenue into open market repurchases of HYPE, which are then burned, steadily reducing the circulating supply.
- HIP-3 market deployment mechanism: Through the HIP-3 proposal, independent market deployers can create and operate new trading markets, incentivizing ecosystem expansion and liquidity provision.
- USDC reserve yield: Hyperliquid holds large USDC reserves, with interest or yield from these funds further boosting protocol revenue.
- Wallet onboarding expansion: Via the Hyperliquid wallet, mobile app, and other entry points, the protocol attracts more users and increases trading volume.
Risk Note: Valuation Hinges on Revenue Delivery
Multicoin Capital also acknowledges that the $319 valuation is highly dependent on Hyperliquid achieving its projected revenue streams over the next few years. If trading volume growth disappoints or protocol revenue is eroded by competitors, HYPE's price could fall significantly short of the target. Additionally, overall crypto market volatility and regulatory changes could affect realization of the valuation.