Grayscale: Hyperliquid's HYPE Token Undervalued Despite Recent Rally

Grayscale has released a research note stating that Hyperliquid's HYPE token may still be undervalued despite its gains this year. The asset manager used an earnings per token framework similar to the earnings per share metric used for equities to value HYPE.

Zach Pandl, Grayscale's head of research, expects Hyperliquid to generate about $1 billion in earnings in 2027, a 20% increase from 2025. This growth is expected to be driven by a recovery in crypto trading activity and additional income from a new stablecoin partnership with Coinbase.

Grayscale also analyzed the impact of changes in HYPE's circulating supply on its value. The firm expects circulating supply to reach between 270 million and 310 million tokens by the end of 2027, depending largely on the pace of contributor unlocks. At this price point, Grayscale projects that HYPE could generate between $3.25 and $3.75 in earnings per token.

Pandl stated that multiple appears inexpensive compared with publicly traded fintech companies, suggesting that the token may still be undervalued despite its recent rally. However, risks include weaker than expected protocol revenue and faster than expected growth in HYPE's circulating supply.