Bitwise says Hyperliquid’s HYPE token is undervalued as platform revenue and token buybacks accelerate.
Hyperliquid News
Crypto asset manager Bitwise says Hyperliquid's token (HYPE) is among the most undervalued assets in the market, according to a blog post by Chief Investment Officer Matt Hougan published on May 19. Hougan argued the market is committing "2 errors" when pricing Hyperliquid. The first is underestimating the scale of the market the platform is targeting. The second is failing to account for how HYPE captures value from platform activity.
Hyperliquid is a decentralized trading platform that built its reputation in crypto perpetual futures. It has since expanded into equities, commodities, foreign exchange, and prediction markets. Those moves have driven higher trading volumes and broader investor attention. Hougan said current prices still reflect Hyperliquid's origins as a niche #DeFi derivatives exchange rather than its broader ambitions.
"Today's prices suggest you're being offered the second at the cost of the first," Hougan wrote, referring to Hyperliquid's positioning across multiple asset classes. Bitwise estimated the platform is generating between $800 million and $1 billion in annualized revenue. The firm said HYPE is trading at roughly 10 to 14 times its buyback stream.
How HYPE Captures Value From Trading Activity
That valuation sits below those of traditional financial exchanges such as Robinhood and CME Group. Both companies trade at materially higher multiples despite slower growth rates, according to Bitwise. Hougan said that gap makes HYPE appear inexpensive relative to established financial infrastructure companies.
The token's buyback mechanism is central to the investment case. Hougan noted that 99% of trading fees on the platform are directed toward repurchasing $HYPE tokens. He said that structure creates a direct and measurable link between platform revenue and token value. That approach sets Hyperliquid apart from most #crypto projects, according to Bitwise.
Bitwise also pointed to the current US regulatory environment as favorable for Hyperliquid's model. SEC Chair Paul Atkins has publicly supported financial "super-apps" that bring multiple asset classes under a single platform. Bitwise said those comments align with the direction Hyperliquid is taking.
A partnership involving Coinbase and Circle is shifting stablecoin economics toward trading venues and away from issuers. Analysts say that shift could support sustained demand for $HYPE while putting pressure on Circle's margins. HYPE was trading around $48.70 on May 19, up more than 8% over the prior 24 hours.
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