#Why Might Hyperliquid's HYPE Token Be Undervalued?
The HYPE token associated with Hyperliquid has shown significant growth this year; however, experts suggest it could still be underestimated compared to publicly traded fintech firms. Grayscale's head of research, Zach Pandl, notes that Hyperliquid can be evaluated based on its protocol earnings, despite its lack of traditional share issuance. In essence, the asset manager applies an earnings-per-token framework that mirrors the earnings-per-share metric commonly used in evaluating stocks.
Grayscale anticipates Hyperliquid could generate about $1 billion in earnings by 2027. This projection represents a 20% increase from 2025, driven by a resurgence in crypto trading activities and an extra revenue stream from a forthcoming stablecoin partnership. Through its partnership with Coinbase, Hyperliquid’s Aligned Quote Asset version 2 will see the exchange act as the official USDC treasury deployer. This relationship allows a portion of the reserves generated by USDC to flow into Hyperliquid, establishing an additional revenue stream that can facilitate HYPE token purchases.
#How Does Circulating Supply Affect HYPE Token Value?
The value of the HYPE token is also influenced by its circulating supply. On one hand, increases in staking emissions and the unlocking of contributor tokens expand the supply. On the other hand, fee-funded token burns serve to decrease it. Currently, approximately 270 million HYPE tokens are in circulation. By the end of 2027, Grayscale estimates this figure may rise to between 270 million and 310 million tokens, contingent mainly on the pace of contributions unlocking. Presently, core contributors are unlocking around 550,000 HYPE tokens monthly, but Grayscale has ran models projecting scenarios up to five times this monthly amount.
#What Earnings Per Token Could HYPE Achieve?
With these estimates in mind, Grayscale forecasts that by 2027, HYPE might yield earnings ranging between $3.25 and $3.75 per token. At a price of $54—used for this assessment—HYPE currently trades at approximately 15 to 18 times its projected earnings. This valuation seems relatively low when compared to publicly traded fintech companies, which suggests that HYPE token may still be trading below its fair value despite the notable price rally it has experienced recently.
#What Factors Influence Hyperliquid's Outlook?
The overall market outlook for Hyperliquid hinges on the platform's ability to sustain robust trading activities and effectively manage growth in token supply. Key risks include lower-than-expected revenue generation from the protocol and a potential rapid increase in HYPE's circulating supply. Navigating these factors will be essential for investors considering a stake in Hyperliquid and its HYPE token.