Bitwise: Hyperliquid’s HYPE Token Undervalued After 20% Surge

Bitwise CIO Bullish on Hyperliquid and HYPE Token

Bitwise Chief Investment Officer Matt Hougan expressed a strongly bullish outlook on Hyperliquid and its native token, HYPE, shortly after Bitwise launched a HYPE exchange-traded fund (ETF) last week. Hougan argued that the market is undervaluing Hyperliquid’s broader business model, treating it as merely another perpetual futures venue.

Hyperliquid as a Global Super App

Hougan believes Hyperliquid is experiencing a “pricing error,” with investors valuing the platform primarily as a perpetual futures exchange. In contrast, he views Hyperliquid as a global financial “super app,” expanding beyond crypto into areas such as stocks, commodities, foreign exchange, and prediction markets.

As part of his valuation, Hougan estimated the platform’s annual revenue could reach $800 million to $1 billion, suggesting significant growth potential beyond its current market categorization. A key element of Hougan’s argument is Hyperliquid’s fee model, where 99% of trading fees are allocated to HYPE token buybacks. He described this as a mechanism that supports value, unlike revenue extraction without token-linked benefits. This, he said, aligns incentives differently than investors may assume when viewing Hyperliquid as a standard trading platform.

HYPE Approaches All-Time Highs

Hougan emphasized that HYPE’s recent performance does not alter his view that the token remains undervalued. He noted that HYPE is up 77% this year, yet he believes the market hasn’t fully recognized Hyperliquid’s long-term trajectory. In his view, Hyperliquid’s opportunity lies not only in growing as a crypto perpetual exchange but also in evolving into a broader trading super app encompassing stocks, pre-IPO assets, commodities, prediction markets, and crypto assets.

These bullish remarks follow increased interest in HYPE, fueled by ETF activity. Along with Bitwise’s launch of a Hyperliquid ETF tied to HYPE, 21Shares introduced its own HYPE ETF earlier in the month. Following these launches, HYPE surged, recording gains of nearly 20% in the past week. At the time of writing, HYPE was trading just above $48, only 18% below its all-time high of $59 reached last year.