Grayscale Sees Hyperliquid's HYPE as Undervalued Amid Institutional Sell-Off

Grayscale's Head of Research Zach Pandl believes that Hyperliquid's HYPE token is undervalued despite its recent price drop to $54. According to Pandl, a similar model to earnings per share (EPS) can be applied to HYPE using earnings per token (EPT), which would translate to a valuation multiple of 15x to 18x.

This estimate is based on Hyperliquid's projected revenue of $1 billion by the end of 2027, with a total HYPE circulation of 270-310 million. Compared to fintech equities like Circle and Coinbase, which are trading at higher multiples relative to their generated revenue, Pandl thinks that HYPE may be undervalued.

Assuming HYPE can eventually trade at the same valuation multiple as Coinbase's COIN or Robinhood's HOOD, around 35x or 40x, a price target of $113 to $150 could be reached. However, this projection is subject to several caveats, including revenue falling below expectations and token supply exceeding forecasts.

Meanwhile, institutional selling pressure led by Multicoin Capital has contributed to HYPE's recent decline. The firm unstaked over 1 million HYPE valued at $59 million and deposited $4.78 million on Coinbase Prime, further spooking the market with pending selling pressure. Selini Capital also deposited $26.8 million HYPE on the OKX exchange.