Key Takeaways
- Matt Hougan, Bitwise’s Chief Investment Officer, identifies HYPE as significantly undervalued in today’s cryptocurrency landscape.
- The token has delivered a remarkable 77% return in 2026, outpacing all other major crypto assets this year.
- According to Bitwise, the market incorrectly values HYPE as merely a derivatives platform rather than recognizing its potential as a comprehensive financial trading ecosystem.
- The platform channels 99% of its fee revenue into HYPE token buyback programs.
- Over the last 30 days, Hyperliquid processed $170 billion in trades and continues expanding into stocks, commodities, and forecasting markets.
In a recent analysis, Bitwise’s Matt Hougan, serving as Chief Investment Officer, outlined his position that the market has fundamentally mispriced Hyperliquid’s HYPE token. According to Hougan, market participants are committing “two errors” — they’re significantly underestimating the breadth of Hyperliquid’s target market while simultaneously overlooking the token’s value capture mechanics tied to platform usage.
At press time, HYPE was changing hands near $48.70, registering an over 8% climb within the previous 24-hour period. The digital asset has already climbed 77% since January, positioning it as 2026’s strongest performer among established cryptocurrency projects.
Even with such impressive gains, Hougan maintains the asset remains underappreciated.
“Despite HYPE leading all major crypto assets with a 77% year-to-date increase in 2026, I believe the investment community continues to undervalue both its potential impact and true worth,” Hougan stated.
Hyperliquid operates as a decentralized exchange platform, initially recognized for cryptocurrency perpetual contracts. The platform has since diversified into equity trading, pre-public company shares, commodity markets, and prediction-based instruments.
The exchange facilitated $170 billion in transaction volume during the preceding month. Hougan projects that non-cryptocurrency instruments will expand from approximately 50% to reach 70% of overall platform activity in coming periods.
Bitwise’s Case for HYPE Being Underpriced
Hougan’s central thesis revolves around the market’s flawed comparison framework—treating Hyperliquid as a standard crypto exchange rather than evaluating it as an all-encompassing financial services platform. He emphasizes that the relevant opportunity isn’t limited to the $3 trillion cryptocurrency sector but extends to the entire $600 trillion worldwide asset marketplace.
Bitwise’s calculations suggest Hyperliquid currently produces annual revenue between $800 million and $1 billion. When assessed at approximately 10–14 times its buyback revenue stream, this valuation appears attractive compared to established firms like Robinhood and CME Group, which command premium multiples despite exhibiting slower expansion rates.
Hougan categorized HYPE as a “Gen 2” token—comparable to equity securities in its capacity to appreciate as the underlying platform expands. With 99% of platform fees directed toward token repurchases, he emphasized: “Increased trading volume → expanded buybacks → enhanced value accumulation. The mechanism is crystal clear.”
Favorable Regulatory Environment and Strategic Alliances
Bitwise highlighted SEC Chairman Paul Atkins as a positive regulatory influence. Atkins has openly endorsed the concept of integrated financial platforms capable of delivering diverse asset categories within a unified compliance structure.
Hyperliquid recently announced a strategic collaboration with both Coinbase and Circle. Bitwise’s research team suggests this arrangement shifts stablecoin revenue dynamics away from token issuers toward cryptocurrency trading platforms, potentially bolstering HYPE demand while compressing Circle’s profit margins.
Hougan acknowledged that substantial growth opportunities remain. The platform currently excludes U.S.-based traders and requires integration into American regulatory infrastructure before full market penetration.
Bitwise has recently introduced its proprietary HYPE-focused exchange-traded fund (BHYP) and announced intentions to allocate a percentage of management revenue toward accumulating additional HYPE tokens.
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