TLDR
- Grayscale applied an earnings per token model to compare HYPE with listed fintech company valuations.
- Hyperliquid could generate about $1 billion in protocol earnings during 2027, according to Grayscale estimates.
- HYPE trades near 15 to 18 times projected 2027 earnings at the analysed token price.
- Coinbase’s USDC treasury role may add reserve income that could support future HYPE token purchases.
- HYPE supply may reach 270 million to 310 million tokens by the end of 2027.
Grayscale said Hyperliquid’s HYPE token may still look inexpensive compared with listed fintech stocks, despite strong gains this year. The asset manager based its view on projected protocol earnings, token supply, and revenue growth through 2027.
Grayscale Applies Earnings Framework to HYPE
Grayscale head of research Zach Pandl said Hyperliquid can be assessed through protocol earnings, even though HYPE does not represent traditional company shares. The firm used an earnings per token model similar to earnings per share in equity markets.
The approach compares the value created by the protocol with the number of HYPE tokens in circulation. Grayscale said this method can help investors compare crypto networks with listed financial technology companies.
The firm expects Hyperliquid to generate about $1 billion in earnings in 2027. That would be roughly 20% above its 2025 level, supported by stronger crypto trading activity and new income from a stablecoin partnership.
Grayscale used a $54 HYPE price in its analysis. Based on that level, the token trades at about 15 to 18 times projected 2027 earnings.
USDC Partnership Adds Revenue Stream
Hyperliquid’s Aligned Quote Asset version 2 partnership with Coinbase is also part of the valuation case. Under that arrangement, Coinbase serves as the network’s official USDC treasury deployer.
The partnership directs part of the reserve income generated by USDC to the protocol. Grayscale said that revenue could create another source of funding for HYPE purchases.
Hyperliquid already earns revenue from trading activity on its decentralized derivatives platform. Stronger trading volumes would support protocol earnings, while weaker activity could reduce future income.
The outlook also depends on how the protocol manages token supply. HYPE currently has about 270 million tokens in circulation, according to Grayscale’s estimates.
Supply Growth and Burns Remain Key Variables
Grayscale expects HYPE’s circulating supply to reach between 270 million and 310 million tokens by the end of 2027. The final level will depend mainly on contributor unlocks and token burns.
Core contributors are currently unlocking about 550,000 HYPE tokens per month. Grayscale modeled scenarios where unlocks continue at the current pace or rise to five times that level.
Staking emissions and contributor unlocks can increase supply. Fee-funded token burns can reduce supply and support earnings per token if protocol revenue remains strong.
Based on its earnings and supply assumptions, Grayscale projected HYPE could generate between $3.25 and $3.75 in earnings per token in 2027.
Pandl said that valuation multiple appears inexpensive against publicly traded fintech companies. He said the token may remain undervalued, provided Hyperliquid sustains revenue and manages supply growth.
The main risks remain lower-than-expected protocol revenue and faster-than-expected HYPE supply expansion. Both factors could reduce earnings per token and weaken the valuation case.
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