Key Takeaways
- According to Bitwise CIO Matt Hougan, HYPE represents one of crypto’s most significantly undervalued opportunities.
- The token has surged 77% since the start of 2026, outperforming all other major cryptocurrency assets.
- Market participants are incorrectly valuing HYPE as merely a derivatives platform rather than a comprehensive global financial super-app, Bitwise contends.
- The platform allocates 99% of all collected trading fees toward HYPE token buybacks.
- Over the last 30 days, Hyperliquid processed $170 billion in trading activity and continues expanding into stocks, commodities, and prediction markets.
In a recent analysis, Bitwise Chief Investment Officer Matt Hougan contended that market participants are fundamentally misevaluating Hyperliquid’s HYPE token. According to Hougan, the investment community is committing “two errors” — they’re significantly underestimating the scale of Hyperliquid’s target market and overlooking the robust value-capture mechanics built into the token itself.
At press time, HYPE was changing hands near $48.70, representing a 24-hour gain exceeding 8%. The digital asset has already climbed 77% year-to-date, establishing itself as 2026’s strongest performer among large-capitalization crypto tokens.
Even with this impressive rally, Hougan maintains that significant value remains unrecognized by the broader market.
“HYPE stands as 2026’s top-performing large-cap crypto asset with a 77% year-to-date gain. Despite this, I believe the investment community continues to undervalue both its transformative potential and intrinsic worth,” Hougan stated.
Hyperliquid operates as a decentralized exchange primarily recognized for cryptocurrency perpetual contracts. However, the platform has recently diversified into traditional equities, pre-IPO shares, commodities trading, and prediction markets.
The exchange recorded $170 billion in total trading volume during the previous month alone. Hougan anticipates that non-cryptocurrency assets, which currently comprise nearly half of platform activity, will eventually expand to represent 70% of total volume.
Bitwise’s Rationale Behind HYPE Being Undervalued
Hougan’s fundamental thesis centers on a valuation mismatch: investors are benchmarking Hyperliquid against crypto-only exchanges when the appropriate comparison should be against comprehensive global financial platforms. The relevant addressable market isn’t limited to crypto’s $3 trillion ecosystem — it encompasses the entire $600 trillion global asset landscape.
Bitwise’s calculations suggest Hyperliquid currently generates between $800 million and $1 billion in annualized revenue. Trading at approximately 10–14 times its buyback flow, this valuation appears attractive compared to Robinhood and CME Group, both of which command higher multiples despite exhibiting slower growth trajectories.
Hougan characterized HYPE as a “Gen 2” token — a category of digital assets that, similar to traditional securities, can appreciate in value as underlying platform activity expands. With 99% of platform fees directed toward token repurchases, the value capture mechanism is straightforward: “Increased trading volume → expanded buybacks → enhanced value accumulation. The connection is unambiguous,” he explained.
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 super-apps capable of delivering diverse asset classes within a unified regulatory structure.
Hyperliquid recently announced a strategic collaboration with Coinbase and Circle. According to Bitwise’s research team, this arrangement shifts stablecoin economics away from traditional issuers toward on-chain trading venues, potentially creating sustained HYPE demand while compressing Circle’s profit margins.
Hougan emphasized that substantial growth opportunities remain untapped. The platform currently excludes U.S.-based traders and requires integration with domestic regulatory frameworks before accessing that market.
Bitwise has recently introduced its own HYPE-focused exchange-traded fund (BHYP) and announced intentions to allocate a portion of management fee revenue toward ongoing HYPE token accumulation.
