Multicoin Capital Bullish on HYPE: Base Valuation of $319 by 2028
Multicoin Capital, a prominent crypto venture capital firm, has published a research report projecting a base valuation of $319 for HYPE, the native token of the Hyperliquid ecosystem, by 2028. This represents approximately a 4x upside from current price levels. The report's core thesis is that Hyperliquid is increasingly emulating the profitable business model of centralized exchanges (CEXs) while funneling on-chain protocol revenue back to token holders.
The report identifies five key revenue drivers: high trading market share generating fee income, 99% of protocol revenue dedicated to buybacks and token burns, the HIP-3 market deployment mechanism that charges fees for listing new markets, yields from USDC reserves, and expanded wallet onboarding. Among these, the buyback-and-burn mechanism is the most direct method of reducing circulating supply and enhancing token scarcity. USDC reserve yields provide a steady base return even during periods of low trading volume.
Valuation Hinges on Revenue Delivery
Multicoin's valuation model assumes that Hyperliquid will maintain its high market share in perpetuals and spot trading, with sustained user activity growth. If revenue growth falls short or competitors capture market share, the $319 target may not materialize. The report notes that HYPE's current price already partially reflects market expectations of future revenue, meaning a 4x upside would require severalfold growth in protocol revenue.
From a technical standpoint, the HIP-3 mechanism allows Hyperliquid to quickly launch new trading pairs and collect fees, similar to CEX listing fees. Wallet expansion initiatives aim to reduce onboarding friction and increase user acquisition. USDC reserves generate yields that provide a safety net for protocol revenue during bear markets. Together, these measures form a comprehensive value-capture system for HYPE.
Market Reaction and Risk Factors
Following the report's release, HYPE saw a modest short-term price increase, but overall market sentiment remains cautious. Investors question whether Hyperliquid can sustain its high market share amid intensifying competition from both traditional CEXs and emerging DEXs. Furthermore, allocating 99% of protocol revenue to buybacks weakens the treasury and could limit future development funding, raising concerns about long-term sustainability.
Multicoin Capital's projection provides a clear upside target for HYPE, but the crypto market is volatile and competitive dynamics can shift rapidly. Investors are advised to assess their own risk tolerance and monitor Hyperliquid's monthly revenue reports and user growth metrics closely.