TLDR
- Bitwise says HYPE is undervalued because investors are treating Hyperliquid mainly as a crypto derivatives exchange.
- Hyperliquid is expanding into non-crypto markets, including equities, commodities, foreign exchange and prediction markets.
- Bitwise estimates Hyperliquid is generating about $800 million to $1 billion in annualized revenue.
- The platform uses 99% of trading fees to buy back HYPE tokens, linking token demand to trading activity.
- Bitwise recently launched a HYPE-based ETF and plans to use part of its management fees to accumulate HYPE tokens.
Crypto asset manager Bitwise has said Hyperliquid’s HYPE token remains undervalued, arguing that investors are viewing the project too narrowly as a crypto derivatives venue rather than as a broader trading platform for multiple asset classes.
In a note by Bitwise Chief Investment Officer Matt Hougan, the firm said the market is not fully accounting for Hyperliquid’s expansion plans or the way the HYPE token is linked to activity on the platform. HYPE traded near $48.70 at publication time, after rising more than 8% over 24 hours.
Hyperliquid is best known as a decentralized platform for perpetual futures trading. The exchange has built a large user base in crypto derivatives, but Bitwise said its market opportunity could widen as it adds products tied to equities, commodities, foreign exchange, prediction markets and other financial instruments.
Bitwise Sees Broader Market for Hyperliquid
Hougan said investors are valuing Hyperliquid as a fast-growing crypto perpetual futures exchange, while Bitwise believes it should be assessed as a global trading platform. He said non-crypto products could become a larger part of Hyperliquid’s business over time.
The Bitwise note said Hyperliquid generated about $170 billion in trading volume during the previous month. Hougan added that the platform still needs to mature, noting that it is not available to U.S. users and would need to fit within the U.S. regulatory system to reach a wider customer base.
Bitwise estimated that Hyperliquid is producing between $800 million and $1 billion in annualized revenue. The firm said the token trades at about 10 to 14 times its buyback stream, a level it compared with valuation multiples for companies such as Robinhood and CME Group.
Fee Buybacks Shape HYPE Valuation
A central part of Bitwise’s argument is the HYPE token’s buyback model. Hougan said 99% of trading fees generated on Hyperliquid are used to buy back HYPE tokens. In his view, this creates a direct link between trading activity on the exchange and demand for the token.
Bitwise described HYPE as part of a newer category of crypto assets designed to return platform value to token holders more directly than many earlier digital assets. Hougan referred to this type of structure as a “Gen 2” token model.
The firm said this structure makes HYPE more comparable to revenue-linked trading businesses than to many decentralized finance tokens. It also said investors may be assigning a lower valuation because Hyperliquid is still viewed mainly through the lens of crypto-native trading.
ETF Launch Adds Institutional Focus
Bitwise recently launched a HYPE-based exchange-traded fund. The asset manager said it plans to use a portion of the management fees from its BHYP Hyperliquid ETF to accumulate HYPE tokens.
The firm also cited a changing U.S. regulatory environment under SEC Chair Paul Atkins. Hougan said recent policy signals could support trading platforms that offer several asset classes under one framework, though Hyperliquid would still need regulatory integration before serving U.S. users.
Hyperliquid has also been linked to new activity involving Coinbase and Circle. The arrangement is aimed at shifting part of stablecoin-related economics toward trading venues, a move analysts cited in the source material as a potential source of demand for HYPE while creating pressure on stablecoin issuer margins.
Hougan said HYPE has been the best-performing large-cap crypto asset of 2026, rising 77% year to date. Bitwise’s assessment remains that the token is not yet being valued in line with Hyperliquid’s broader ambitions, its trading volume, and its fee-based buyback structure.
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