Bitwise Chief Investment Officer Matt Hougan says investors are still underestimating Hyperliquid, even after HYPE became one of the strongest large-cap crypto assets of 2026.
In his Bitwise CIO memo, Hougan called Hyperliquid one of the most important crypto projects to emerge in years and argued that the market is still valuing it too narrowly. His thesis is that Hyperliquid should not be viewed only as a fast-growing crypto perpetual futures exchange, because the platform is already moving toward a broader trading model across crypto and non-crypto assets.
The memo said HYPE was up 77% year to date at the time of publication, making it the best-performing large-cap crypto asset of 2026. HYPE recently traded near $60, with CoinGecko showing a market cap above $13 billion and more than $1.2 billion in 24-hour trading volume.
The renewed attention around Hougan’s comments comes as social posts compared Hyperliquid’s current stage to ChatGPT before mainstream investors fully understood the AI trade. The point being debated by traders is whether Hyperliquid is still early in its adoption curve despite already becoming one of crypto’s largest trading platforms.
Bitwise Frames Hyperliquid As A Trading Super-App
Hougan’s main argument is built around market size. He wrote that investors are making a category error by valuing Hyperliquid against the crypto market alone, when its product roadmap is aimed at a much larger global asset universe.
Hyperliquid began as a crypto perpetual futures exchange, but the platform has expanded into non-crypto markets, prediction markets and broader trading products. Hougan said non-crypto assets already account for a large share of its volume and expects that share to continue rising.
That puts Hyperliquid closer to a trading infrastructure story than a single-market DeFi app. The platform is targeting markets tied to crypto, equities, commodities, FX, prediction markets and pre-IPO-style exposure, while maintaining onchain execution and transparent settlement.
The current usage numbers explain why the platform has stayed in focus. DeFiLlama recently showed Hyperliquid with about $19.5 billion in 24-hour perpetual futures volume, $9.15 billion in open interest and a market cap near $13.1 billion. Those figures place it among the most active decentralized trading platforms in crypto.
HYPE Buybacks Remain Central To The Valuation Debate
Hougan also focused on HYPE’s token design. In the memo, he described Hyperliquid as a “Gen 2” crypto token because trading activity on the platform is tied directly to token value accrual.
The key mechanism is the Assistance Fund, which routes most platform trading-fee economics into HYPE buybacks. Hougan wrote that 99% of trading fees generated on Hyperliquid go directly to buying back HYPE, creating a structure where higher trading activity can translate into direct token demand.
That design has made HYPE one of the clearest fee-linked token stories in the market. The same mechanic has also shaped the broader debate around why HYPE’s buyback model has held stronger market attention than ASTER’s, especially during periods when traders are rewarding tokens with direct revenue capture.
Bitwise has already moved that thesis into a listed product. The firm launched the Bitwise Hyperliquid ETF in May, offering spot HYPE exposure with staking rewards. Hougan said at the time that Hyperliquid’s token is designed so rising platform activity directly benefits token holders.
Institutional positioning has followed the same theme. Bitwise and 21Shares HYPE buying added fuel to the recent rally as ETF-linked demand became part of the token’s market structure.
Price Pullback Puts Growth Metrics Back In Focus
HYPE has cooled after pushing into record territory earlier this month. The token recently traded around $60, down from its all-time high above $75, while broader crypto market weakness and profit-taking hit high-beta assets.
That pullback puts Hyperliquid’s operating metrics back at the center of the trade. If perpetual volume, open interest, fees and non-crypto market activity keep rising, HYPE holders will likely continue focusing on the buyback stream. If activity slows, traders may price the token more aggressively against current revenue rather than future market expansion.
The platform’s growth has also made large trader activity more visible. Recent Machi Big Brother liquidations on Hyperliquid showed how much attention the exchange now commands when leverage, volatility and public wallet tracking collide.
Hougan’s thesis gives Hyperliquid a clear institutional framing: a fast-growing onchain trading platform, a token with direct buyback mechanics, and a market opportunity that Bitwise says extends beyond crypto perpetuals. HYPE’s next move will depend on whether those mechanics keep showing up in volume, fees, open interest and real demand after the token’s sharp run.
Be the first to comment