Grayscale’s research team believes Hyperliquid’s HYPE token is still undervalued despite its rally this year. Zach Pandl, head of research at Grayscale, laid out projections estimating that Hyperliquid could reach $1 billion in earnings by 2027. This figure marks a 20% increase from 2025, buoyed by a rebound in crypto trading volumes and revenue from a new partnership involving a stablecoin.

Unlike traditional equities, Hyperliquid doesn’t issue shares, but Grayscale applies an earnings-per-token model similar to the earnings-per-share metric used in stock markets. This approach values each HYPE token based on anticipated protocol profits. Key to the token’s revenue streams is Hyperliquid’s collaboration with Coinbase, which acts as the official USDC treasury deployer for the network. Coinbase allocates part of the reserves’ income back to the protocol, creating a fresh income source that could theoretically support demand for HYPE tokens.

Supply Dynamics and Earnings Potential

Token supply plays a key role in valuation. Currently, about 270 million HYPE tokens circulate. Emissions from staking and contributor unlocks add to the supply, while token burns funded by fees reduce it. Grayscale forecasts circulating supply to range between 270 million and 310 million tokens by the end of 2027, depending heavily on how quickly contributors unlock their tokens. Unlocks happen at around 550,000 tokens per month now, but scenarios modeled by Grayscale account for up to five times that pace.

Taking these supply variables into account alongside earnings, Grayscale expects each HYPE token could earn between $3.25 and $3.75 in 2027. Priced at $54 per token in their analysis, this translates to a valuation multiple of 15 to 18 times projected earnings. By comparison, this multiple is relatively low against those of publicly traded fintech companies, suggesting room for price appreciation if the protocol hits its targets and manages supply growth effectively.

Risks remain, including slower-than-anticipated revenue generation and accelerated token issuances that could dilute value. Still, the partnership with Coinbase and a recovering crypto trading environment fuel optimism.

Bitcoin slipped under $64,000 today, reflecting broader market caution on fresh data.

Disclaimer: This content is informational and does not constitute financial advice.