Grayscale Sees Hyperliquid as a Hidden Gem Amid Crypto Market Volatility

Grayscale's Head of Research Zach Pandl has taken to arguing that HYPE is significantly undervalued. According to him, Hyperliquid's projected earnings for 2027 are approximately $1 billion, driven by a recovery in crypto trading volume and a new stablecoin partnership.

Pandl estimates the forward earnings multiple for HYPE to be between 15 and 18 times current prices, which is lower than every major fintech and crypto equity peer except PayPal. This discount becomes even more pronounced when considering the growth of Hyperliquid's earnings over the next two years, projected at around 20%.

One key factor in Grayscale's argument is the new stablecoin revenue stream, which will contribute to the protocol through the Aligned Quote Asset v2 infrastructure. This recurring revenue layer on top of trading fees is expected to add significantly to Hyperliquid's earnings.

The main risks Pandl cited include lower-than-expected network revenue growth and higher-than-expected token supply growth from contributor unlocks. At current rates, core contributors are unlocking around 550,000 HYPE per month, with a potential for up to five times that rate in Grayscale's supply projections.