Key Takeaways
- Matt Hougan, Bitwise’s Chief Investment Officer, identifies HYPE as among crypto’s most undervalued tokens currently.
- The token has surged 77% since the beginning of 2026, leading all major crypto assets in performance this year.
- According to Bitwise, the market incorrectly views HYPE as merely a derivatives exchange token rather than a global trading platform.
- The Hyperliquid protocol allocates 99% of its fee revenue to HYPE token buybacks.
- The platform processed $170 billion in trades last month and is diversifying into stocks, commodities, and prediction market offerings.
In a recent investment memo, Matt Hougan, Chief Investment Officer at Bitwise, contended that the market is fundamentally mispricing Hyperliquid’s HYPE token. According to Hougan, market participants are committing “two errors”āundervaluing the total addressable market Hyperliquid can capture and overlooking the token’s robust value accrual mechanism tied to platform usage.
At publication time, HYPE was changing hands near $48.70, representing an over 8% increase in the preceding 24-hour period. Year-to-date, the asset has appreciated 77%, establishing it as 2026’s strongest-performing large-capitalization cryptocurrency.
Even with these impressive returns, Hougan maintains the asset remains underappreciated.
“HYPE leads all large-cap crypto assets in 2026 with 77% YTD gains. Yet I believe the market continues to underestimate both its potential impact and intrinsic value,” Hougan stated.
Hyperliquid operates as a decentralized exchange primarily recognized for cryptocurrency perpetual contracts. Recently, the platform has diversified its offerings to include traditional equities, pre-IPO shares, commodities trading, and prediction market products.
The exchange facilitated $170 billion in trading activity during the last 30 days. Hougan projects that non-cryptocurrency assets, which currently represent approximately half of platform volume, will eventually constitute 70% of total trading activity.
The Bitwise Case for HYPE’s Undervaluation
Hougan’s central thesis contends that market participants wrongly benchmark Hyperliquid against crypto-only exchanges when it should command valuations comparable to comprehensive financial platforms. The relevant addressable market isn’t limited to crypto’s $3 trillion valuationāit encompasses the entire $600 trillion global asset ecosystem.
Bitwise’s analysis suggests Hyperliquid currently generates annual revenue between $800 million and $1 billion. Trading at approximately 10ā14 times its buyback flow, this valuation appears attractive relative to companies like Robinhood and CME Group, which command higher multiples despite slower expansion rates.
Hougan classified HYPE as a “Gen 2” tokenācomparable to securities that appreciate as underlying platforms expand. With 99% of trading fees directed toward token buybacks, the value mechanism is straightforward. “Increased trading ā expanded buybacks ā greater value accumulation. The relationship is unambiguous,” he explained.
Favorable Regulatory Environment and Strategic Alliances
Bitwise highlighted SEC Chairman Paul Atkins as a constructive regulatory influence. Atkins has publicly endorsed the concept of integrated financial platforms capable of offering diverse asset classes within unified regulatory structures.
Hyperliquid recently announced a strategic collaboration with Coinbase and Circle. Bitwise analysts suggest this arrangement shifts stablecoin economics from issuers toward trading platforms, potentially sustaining HYPE demand while compressing Circle’s profit margins.
Hougan acknowledged significant growth opportunities remain. The platform currently excludes U.S.-based traders and requires integration into American regulatory frameworks before accessing this market.
Bitwise recently introduced its HYPE-focused exchange-traded fund (BHYP) and announced plans to allocate a portion of management fee revenue toward purchasing additional HYPE tokens.
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