Grayscale Sees Hyperliquid's HYPE Token as Undervalued Compared to Fintech Companies

Grayscale's research team has analyzed the potential value of Hyperliquid's HYPE token. According to their analysis, despite its gains this year, HYPE may still be undervalued compared to publicly traded fintech companies.

Zach Pandl, Grayscale's head of research, used an earnings per token framework similar to the earnings per share metric for equities. He expects Hyperliquid to generate $1 billion in earnings by 2027, a 20% increase from 2025. This growth is driven by a recovery in crypto trading activity and additional income from a new stablecoin partnership with Coinbase.

The Aligned Quote Asset version 2 partnership between Hyperliquid and Coinbase creates an additional revenue stream for the protocol. Grayscale also considered changes in HYPE's circulating supply, which can affect its value. Staking emissions and contributor unlocks increase supply, while fee-funded token burns reduce it. The current circulating supply is around 270 million tokens.

Grayscale projects that the circulating supply will reach between 270 million and 310 million tokens by the end of 2027, depending on the pace of contributor unlocks. They modeled scenarios ranging from the current pace to five times that amount. Based on their estimates, HYPE could generate $3.25 to $3.75 in earnings per token in 2027.

Pandl believes that the multiple of 15-18 times projected earnings is relatively inexpensive compared to publicly traded fintech companies, suggesting that HYPE may still be undervalued despite its recent rally. However, the outlook depends on Hyperliquid maintaining strong trading activity and controlling token supply growth.