Grayscale Research highlighted on Tuesday that Hyperliquid's HYPE token might be undervalued compared to fintech stocks. Their analysis uses a fresh approach, treating the token like a stock by valuing it based on projected earnings per token.
Zach Pandl, Grayscale’s head of research, projects Hyperliquid will generate about $1 billion in earnings by 2027, a 20% increase from 2025. This growth is expected to come from a rebound in crypto trading volumes and steady income from stablecoin reserves under Hyperliquid’s Aligned Quote Asset framework.
Valuation and Market Challenges
The circulating supply of HYPE tokens is forecasted to reach between 270 million and 310 million by the end of 2027, which implies earnings of $3.25 to $3.75 per token. With the current price around $54, the forward price-to-earnings ratio falls between 15 and 18. Grayscale points out that even with gains this year, HYPE remains attractively priced relative to fintech equities.
However, the token has faced a rough period lately. Since mid-June, HYPE’s price has dropped 29%, falling short of large-cap crypto assets that have maintained gains. Institutional pressure has compounded the slide, with major players like Multicoin Capital and Paradigm unstaking approximately $291 million in HYPE during July. Multicoin also moved a significant portion of its unstaked tokens to Coinbase, intensifying outflows.
Spot HYPE funds have seen $8.6 million in outflows last week alone, marking their second consecutive week of losses and an 18% drop since early July. Despite these headwinds, Grayscale’s outlook maintains that HYPE’s valuation remains compelling compared to its fintech counterparts. Risks include slower network revenue growth and faster token supply expansion, which could affect future earnings.
This content is for informational purposes and does not constitute financial advice.
