Hyperliquid’s HYPE token dropped below $55 as institutional investors offloaded large positions. Yet Grayscale believes the token remains undervalued when measured against traditional valuation standards.

Valuation Metrics Behind the HYPE Price

Zach Pandl, Grayscale’s Head of Research, applied a familiar concept from equities to the crypto asset: earnings per token (EPT), inspired by earnings per share (EPS). He projects Hyperliquid could generate $1 billion in revenue by 2027. With an expected circulating supply between 270 and 310 million HYPE tokens, this points to earnings of approximately $3.25 to $3.75 per token. That translates to a forward valuation multiple between 15 and 18 times earnings.

Currently priced near $54, HYPE trades at roughly this multiple, which is modest compared to fintech stocks like Circle, Coinbase, and Robinhood these companies command higher multiples relative to revenue. If HYPE matched Coinbase’s or Robinhood’s multiples of 35 to 40 times, its price could soar to between $113 and $150. However, Pandl cautions that these forecasts depend heavily on revenue growth and supply control.

Institutional Moves Shake the Market

Despite HYPE’s sharp appreciation in early 2026 jumping from $20 to about $80 fueled by U.S. Spot ETF demand and institutional enthusiasm the token has given back gains amid recent selling pressure and negative sentiment. Key crypto venture capital firms like Multicoin Capital and Selini Capital have cashed in sizable profits.

Multicoin notably unstaked over 1 million HYPE tokens worth around $59 million, moving $4.78 million to Coinbase Prime, and recently unstaked another $120 million, signaling potential further sell-offs. Selini Capital also deposited $26.8 million worth of HYPE on OKX in late July. The U.S. spot HYPE ETFs experienced $4.5 million in outflows during July, marking their first negative month since launch, though their performance still outpaced other spot crypto ETFs.

If HYPE falls below the $55 support level, technical analysis suggests it could test $48 and possibly $45, which aligns with the 200-day moving average. Meanwhile, institutional rebalancing trends in the crypto space continue to affect market dynamics.

This information is for educational purposes and not financial advice.