Bitwise Asset Management has thrown its weight behind Hyperliquid's HYPE token, calling it one of the most undervalued assets in crypto as the token surged more than 8% over 24 hours to trade around $48.70.

Market Context

The broader crypto market has been navigating a period of renewed institutional interest, with decentralized finance protocols gaining traction amid evolving regulatory clarity. Hyperliquid sits at the intersection of this trend—positioning itself not merely as a perpetual futures venue but as a comprehensive trading platform spanning equities, commodities, foreign exchange and prediction markets.

Analysis

Bitwise Chief Investment Officer Matt Hougan outlined what he sees as two critical errors in how the market currently values Hyperliquid. First, investors are underestimating the size of the total addressable market the protocol is targeting by treating it as a crypto-native derivatives exchange rather than a global financial trading super-app. Second, the market fails to appreciate how effectively the HYPE token captures value generated from platform activity.

"Today's prices suggest you're being offered the second at the cost of the first," Hougan wrote in a Tuesday blog post, referring to Hyperliquid's ambitions across crypto, equities, commodities, FX and prediction markets.

The thesis centers on Hyperliquid's distinctive tokenomics. According to Bitwise, 99% of trading fees collected on the platform flow directly into buybacks of HYPE tokens—a mechanism that creates what analysts describe as an unusually direct linkage between platform growth and token appreciation. This contrasts with traditional exchange models where fee revenue accrues to shareholders without equivalent shareholder-token holder alignment.

The firm also highlighted Hyperliquid's recent partnership with Coinbase and Circle as a structural catalyst. The agreement redirects stablecoin economics away from issuers toward crypto trading venues, a shift analysts suggest could fuel sustained demand for HYPE while pressuring competitors like Circle on margin expansion.

Regulatory tailwinds may provide additional support. Bitwise noted that the more favorable U.S. regulatory environment under SEC Chair Paul Atkins—whose recent comments have embraced financial super-apps offering multiple asset classes under unified frameworks—positions Hyperliquid well for continued expansion into regulated markets.

Key Numbers

- HYPE token price: approximately $48.70 at publication time, up 8%+ over 24 hours

- Annualized revenue estimate: $800 million to $1 billion per year

- Valuation multiple: trading at roughly 10–14 times buyback stream

- Fee allocation to buybacks: 99% of platform trading fees redirected to HYPE

What to Watch

Traders should monitor whether Hyperliquid can sustain its expansion into equities and commodities trading, as success in these markets would validate Bitwise's super-app thesis. The Coinbase-Circle partnership dynamics bear watching—Circle's margin trajectory will signal whether the stablecoin economics shift proves sustainable for Hyperliquid or creates competitive friction. Key technical levels to watch include HYPE's ability to hold $48 support and build toward prior all-time highs, while upcoming governance votes on fee structure adjustments could serve as near-term catalysts.

The valuation comparison with traditional financial exchanges like Robinhood (HOOD) and CME Group (CME)—both of which trade at materially higher multiples despite slower growth trajectories—suggests room for multiple expansion if Hyperliquid executes on its cross-asset vision.